Why investing in Estonia Property?Looking for audiovisual specialist? Go to AVplannersinc.comfree MLS Search Free Search Link Builder Need credit card? apply visa credit card today! Why investing in Estonia ? Over the last decade many multinational companies discovered real estate investment opportunities in Western Europe.It is the opinion of many International Investment Banks that these markets are almost saturated thus diminishing the returns on investments. The time is therefore right to look at an alternative - the Real Estate Investment Market of Estonia. Estonia market continues to develop and reached a stable stage, The residential segment has seen the strengthening of sales versus leasing, fact motivated not only by the mortgage loans input but also by the stronger purchasing power of local individuals. Supply has remained constant, while the overall quality has improved considerably. Villa compounds or small blocks of flats brought on the market dwelling units with high standard finishing, large sunny rooms and modern layout. Villas have 200 to 300 square meters of usable space, with gardens that reach 100-300 square meters, while apartments usually provide around 100-150 square meters of usable space. The retail market has a big potential, since all the big retail chains present on the national market announced their plans of expansion in Estonia and throughout the country. Owing it to its stage of development, the Estonia retail market represents a good opportunity for chains of supermarkets/wholesalers and discount stores. As several major international companies are moving many of their back offices into relatively low cost skilled markets, Estonia has started to benefit from this international trend called Business Process Outsourcing. The property tax in Estonia consists only of a tax on land. The rate is 0.5 to 2.0 percent of the assessed value of the land, as determined by the local municipality. Acquisitions of property are subject to a 0.15 to 1.0 percent transaction tax, which is levied based upon the contractual transaction value or the estimated market value of the property, whichever is greater. The GDP per capita in Estonia has increased from $1318 in 1994 to $3368 in 1998. Estonia is open to foreign investment, and foreign investors receive national treatment. The government allows foreigners to invest in all sectors, with requirements restricted to nondiscriminatory regulation and documentation. |
