Estonian government approves ban on property purchases for some Russian and Belarusian citizens

The Estonian government on Thursday approved a draft law that would prohibit the purchase of real estate by citizens of Russia and Belarus who do not hold long-term resident status or permanent residence rights in the country, as well as by companies under their control. The ban also covers companies registered in Russia or Belarus, and any legal entity regardless of country of registration if its ultimate beneficial owner is a person subject to the restrictions.

The bill aims to reduce the risk of real estate in Estonia being used for intelligence activities, preparation of sabotage, and other threats to national security, according to the government. More than five months passed from the first public announcement of the need for such restrictions to the cabinet's approval. Interior Minister Igor Taro (Estonia 200) first presented the initiative in late January. During this time, the draft underwent legal refinement and discussion, with particular attention to its compliance with the Estonian Constitution.

This is not the first attempt to restrict property purchases by Russian and Belarusian citizens. In 2023, the EKRE party proposed a similar initiative, but the government did not support it then. In 2024, a similar bill was prepared by the Interior Ministry under former minister Lauri Läänemets, but it also failed to pass.

The bill gives the government the right to designate states whose citizens and companies may pose a threat to security or public order when purchasing real estate. Initially, Russia and Belarus are planned to be included in this list. The restrictions apply to the entire territory of Estonia and cover land plots, apartments, building rights, and the acquisition of shares in real estate properties.

The law will not have retroactive effect—already acquired property will remain in the ownership of current holders. The ban does not apply to Russian and Belarusian citizens who have long-term resident status or permanent residence rights. Renting residential and commercial property will remain allowed. In exceptional cases, the government may grant a special permit for property acquisition.

The bill also provides for updating the current system of restricted areas, which until now was based on the 1999 administrative division. In the future, such zones will be determined by populated areas and displayed on the public cadastral map. Compliance with the new requirements will be verified by notaries, bailiffs, bankruptcy trustees, state property sellers, and the Land and Spatial Planning Department.

The government estimates the impact of the new restrictions on the real estate market to be minor. According to 2025 data, about 600 transactions per year would fall under the law. However, authorities believe the changes will significantly strengthen national security and public order. The bill now goes to the Riigikogu for consideration. After the parliamentary procedure, the new restrictions are planned to take effect on January 1, 2027.