Tallinn churches hit with surprise land taxes on surrounding property
Churches across Estonia face new land taxes after legal reinterpretation left the property surrounding church buildings taxable, hitting Tallinn congregations especially hard.
Late last year, the Ministry of Finance flagged that the tax on land "under the sanctuaries of churches and congregations" had been misapplied, including in Tallinn. Previously, entire church properties were deemed tax-exempt; now only the land directly under the building is.
A joint government and Estonian Council of Churches (EKN) committee met Tuesday to discuss the issue.
Urmas Viilma, president of the Estonian Council of Churches (EKN), said annual taxes for larger churches can reach €3,000–5,000.
He noted that St. Olaf's Church, whose prominent spire is a highly recognizable Old Town landmark in the Tallinn skyline, owes nearly €5,000. Congregations cannot seek compensation from the city either because the tax didn't rise — it simply came into effect.
"If you look at churches in Tallinn's Old Town and city center — of course, each church has some land around it that belongs to it," Viilma said. "But as we know, there's no commercial activity there, and real estate development isn't possible there either."
Tallinn Deputy Mayor Karl Sander Kase (Isamaa) said the tax increase buffer also jumped from 10 to 50 percent.
"That protection mechanism disappeared as well — so it's a double blow to churches and congregations," he acknowledged, adding that despite exemptions totaling €30,000 for 41 churches, congregations across the country still owed the state more than €50,000.
Deputy mayor: This is a nationwide problem
The deputy mayor called for a revision of the Land Tax Act, suggesting a national proposal and for the city's incoming ruling parties to discuss the matter in their ongoing coalition talks.
The interior minister, he added, could also propose retroactive application to ease the city's burden.
Viilma also suggested amending the law, but likewise noted that this route could take years.
The EKN is waiting for the new city government to discuss potential compensation, he said, stressing that the question is who lost under the previous interpretation of the law and whether the prior approach could remain in practice until the tax law is amended.
"It's like someone doesn't want to collect this tax, but now the law requires it and there's nothing they can do," he said. "Jesus also said that if your ox falls into a pit on the Sabbath, you go and save it — you don't wait until the Sabbath ends."
Kase noted the issue affects churches across Estonia, making it a nationwide problem.
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Editor: Barbara Oja, Aili Vahtla
