On 12 March 2008, the Riigikogu passed the Land Tax Act Amendment Act. The provisions relating to charging land tax on protected areas are amended. According to the amendment land tax shall not be charged on land where economic activity is forbidden, on land of strict nature reserves and in special management zones of protected areas and land of special management zones of species protection sites. Pursuant to the amendment the reduced land tax rate will be 50 % of the land tax rate in all cases. Under the current provisions tax rates varied and had to be established every time individually by government regulation. The amendments shall enter into force on 1 January 2009.
For further information please contact Raino Paron, Partner at Raidla Lejins & Norcous in Tallinn.