Tallinn is one of the cleanest and safest (ranking next to Zürich in listings) cities in the European Union with a high standard of living and due to its compact size, everything is close. In addition public transport works well and is free, so a car is not necessary if you live in the central areas. Moving to Tallinn provides expats with a unique mix of modern living, history, and convenience, but it’s important to understand the full picture of living expenses, particularly when it comes to utilities and rent. This guide breaks down what you can expect to pay for utilities, rent, and other living costs in the capital of Estonia.
1. Average Cost of Utilities in Tallinn
In Estonia, tenants typically bear the responsibility of paying for utilities on top of the rent, which include electricity, water, heating, waste management, internet and also costs directly attributable to the upkeep of the building. Let’s break down these costs.
• Electricity: As of May 2024, the average electricity price in Estonia was €75.85 per megawatt-hour (MWh), for a typical apartment of 55m², this means monthly electricity costs can range from €15 to €50, depending on usage if hthe apartment is not heated with electricity. Electric heating can drive up the cost significantly during the heating period, which usually lasts from October to March.
• Heating: Tallinn’s winters make heating one of the most significant utility expenses. For gas and central heated apartments, costs range between €60 and €150 per month, depending on the season and the building’s insulation. Older buildings without energy-efficient systems tend to fall on the higher end.
• Water: Monthly water bills are generally low, typically between €15 and €30, based on consumption and household size.
• House Maintenance Fees: In Estonia, apartment buildings are managed by a KÜ (apartment association), and tenants contribute to house maintenance fees. These fees can include costs for building renovations, and in some cases, if the association has taken out a loan to fund repairs, tenants may see this reflected in their monthly bills. Expect these charges to range from €10 to €100, especially in older buildings undergoing renovations.
Total Utility Costs: For a premium one-bedroom apartment, expect total monthly utility costs to fall between €100 and €250 depending on the building’s age, condition and of course the apartment size.
2. Rental Prices by District
Tallinn’s rental market varies widely depending on the district. If you’re considering a long-term rental in popular expat-friendly areas such as Kesklinn, Kadriorg, or Kalamaja, here’s what you can expect from premium rentals that are fully furnished and with modern appliances in great location:
• Kesklinn (City Center): This is the most desirable location for many expats and diplomats, offering easy access to embassies, businesses, and key cultural spots. The average rental price in October 2024 was around €14.7 per square meter, meaning a 55m² apartment would cost between €800 and €950 per month. However, in upscale areas like Rotermanni Quarter, rents can exceed €20 per square meter, pushing the price for the same-sized apartment to €1,100 and above.
• Kadriorg: Known for its beautiful parks and historical architecture, Kadriorg is another top area for expats. Here, rental prices start at €15.4 per square meter, so a one-bedroom apartment of 55m² would range from €850 up.
• Kalamaja: This trendy, creative neighborhood is popular among younger expats and professionals. Prices are similar to Kadriorg, starting at €15.4 per square meter, meaning a 55m² apartment would also fall in the range of €850 to €1,000.
3. Understanding Estonia’s Unique Tax System
Estonia’s tax system is one of the most expat-friendly in Europe:
• Income Tax: Estonia uses a flat tax rate of 22%, applied equally to residents and non-residents.
• Corporate Tax: Estonia is famous for not taxing corporate profits that are reinvested into the business. This unique tax feature has attracted entrepreneurs and expats from around the world. The government has recently decided to introduce a temporary 2% corporate income tax starting from 2026 (calculated based on 2025 profits)
Conclusion
Tallinn offers a fantastic quality of life, but understanding the cost of utilities and rent is essential for managing your budget. With rental prices varying by district and utility costs fluctuating throughout the year, it’s important to consider both the location and the quality of the apartment when planning your move. It is possible to find cheaper apartments in other districts of Tallinn which are not so central, but expect the utilities to be similar in those areas.
For those seeking premium long-term rentals, TTF Capital specializes in high-quality apartments in Tallinn’s most desirable areas, ensuring that expats, diplomats, and corporate professionals can enjoy modern, comfortable living in Estonia’s vibrant capital.