
In Estonia there are six self-governments, where you will have to pay for land in full, that is, where the most possible rate of land tax is established. According to the local government, this is the only way to compensate for the reduction in revenues of the budget.For taxation land is divided into three target groups. Each group has its maximum tax rate, which is used to calculate the tax on the based value of land. The maximum rate of tax on residential land is 1% per year, on income land – 0.5% per year, on other land – 2% per year. With this maximum rate of tax on residential land and other land is increased twice compared with the past year. Which rate to tax the land is decided by the municipality in which the land unit is located. Haljala, Jõelähtme, Lääneranna and
Vormsi, and also the cities of Loxa and Maardu have decided
totaxthelandatthehighestrateinallthreegroups.There arethreemainreasonsforwhichself-governmentsjustifysettingmaximumlevies.