News Feed
MoneyHub is committed to finding the latest information for consumers. Our News Feed contains easy to digest snippets for those looking to educate themselves.
MoneyHub experts say:
Whilst the upmost care has been taken with aggregating our News Feed, we always urge consumers to do their research when buying products or using our advice.
The average salary in Estonia was €2011 in the first quarter
28/05/25
In the first quarter, the average gross salary in Estonia was €2011, which is 6.1% higher than in the same period in 2024.
The median wage in the first quarter of this year was €1,649. Compared to the first quarter of 2024, the median wage has increased by nearly €100.
In the first quarter, the average wage was highest in Tallinn (€2,384) and in Harju (€2,263) and Tartu (€2,023) counties.
Compared to the same period last year, salaries increased the most in Tartu (7.2%) and Ida-Viru (6.9%) counties. The smallest salary increase was in Harju County, excluding Tallinn, at 4.8%.
Source ERR
Car tax relief for families with children
26/05/25
The coalition agreement of the Estonian government (Reform Party and Estonia 200) provides for a reduction in the annual car tax for families with children, offering a €100 discount for each minor child.
According to Prime Minister Kristen Michal, the proposal will reach parliament in autumn 2025 and the relief will take effect this year. If the annual car tax is less than €100, the family will be completely exempt from the tax. In the case of blended families, only one parent can take advantage of the discount. In addition, there are plans to harmonise the tax rates for cars and minibuses, taking into account CO2 emissions, in order to reduce the burden on people with disabilities and large families.
The administration of the benefit should be simple and digital, similar to income tax returns, although this may require more time initially. The impact on the state budget will be determined by the Ministry of Finance, but the estimated revenue from car tax in 2025 is €99 million.
Source ERR
250,000 left Estonia's second pillar pension scheme in 4 years
22/05/25
Four years after the pension reform, the number of people leaving the second pillar has reached approximately 250,000. Most of those who withdrew their money were people aged 35 to 55 earning the average Estonian salary. In terms of both age and income, they are the target group for the second pension pillar, as they still have a number of working years ahead of them and their future pensions will largely depend on their own contributions.
Source ERR
Eesti Energia offers retail investors bonds worth 10 million euros
20/05/25
Eesti Energia, the Estonian state-owned energy company, is offering bonds worth €10 million to retail investors from 20 May to 30 May.
The bonds have a three-year maturity and a 5% interest rate, with interest paid four times a year starting in September this year.
The offer is aimed at retail investors, and in the event of oversubscription, the company has the right to give preference to former Enefit Green shareholders who held shares as of 28 March.
The capital raised is planned to be used to finance business objectives and develop the energy sector.
Source ERR
Changes to study loans
16/05/25
The planned amendment to the law will remove the requirement for private guarantors and real estate collateral when taking out loans. The amendment will simplify the application process for borrowers and make the processing of loan applications less burdensome for banks.
In addition, the repayment period for student loans will be extended to four times the nominal duration of the study programme, which will reduce the monthly loan payments for students. In the event of discontinuation of studies, the student loan will continue to be repaid within one and a half times the period of study.
The commercial interest rate on student loans is planned to be reduced to 1.2 per cent plus the six-month Euribor, and the upper limit of the interest rate payable by students is planned to be reduced from five per cent to four per cent.
The explanatory memorandum to the draft act also proposes raising the maximum amount of student loans to EUR 6,000.
According to the current plan, the reform will enter into force on 1 September 2026.
Source ERR
Unemployment hits highest level in 12 years in Estonia
15/05/25
In the first quarter of this year, there were 64,200 unemployed people in Estonia, which is the highest figure in the last 12 years. The unemployment rate in the first quarter was 8.6% and the employment rate was 67.4%.
The only region to see a decline in unemployment was Ida-Viru County, where it stood at 12.7%, but despite the decline, the unemployment rate there remains the highest in Estonia.
The employment rate fell by 1% compared to the first quarter of last year, with the largest decline in Southern and Western Estonia, but also in Tallinn.
Source ERR
Pension funds' rapid growth slows in 2025
02/05/25
Estonian pension funds are seeing a dip in 2025, with returns down 7% so far, potentially erasing nearly half of last year’s gains. In 2024, second-pillar funds hit a record high with 16.5% returns (€0.9B increase, totaling €2.6B), while third-pillar funds soared at 20.5%. This followed a strong 2023 (12% second-pillar returns), well above the 4.5% historical average.
Tõnu Lillelaid, Ministry of Finance advisor, notes the funds’ heavy equity focus (80% second pillar, 85% third pillar) ties returns to global stock markets, which performed well recently. Most investments are abroad (Western Europe, USA), diversifying risk but limiting local economic impact. Despite the current slump, Lillelaid emphasizes long-term performance over short-term volatility, citing recoveries post-2008 and COVID. For pension savers, diversification across global markets remains key.
Source ERR
Flash estimate of GDP: economic growth in the first quarter was 1.2%
30/04/25
According to preliminary estimates by Statistics Estonia, Estonia’s GDP grew by 1.2% in the first quarter of 2025 compared to the same period last year and by 0.1% compared to the fourth quarter of 2024 (seasonally adjusted). The exact GDP data will be published on May 30, with the flash estimate based on statistical models.
Source ERR
The European Central Bank cuts main interest rate by 0.25 percentage points
23/04/25
The Governing Council of the European Central Bank has decided to cut its key interest rate by 25 basis points, or 0.25 percentage point, and from 23 April the interest rate will be
the interest rate on the deposit facility will be 2.25 per cent.
the interest rate on the main refinancing operations will be 2,40 %.
the marginal lending rate shall be 2.65%.
The decision has a direct impact on the Euribor.
Source ERR
2025 New tax changes
12/12/24
The Ministry of Finance has provided an overview of legal amendments in its area of administration in 2025. Summarized here the most important changes.
Income tax rates adjust
From 2025, income tax for individuals and corporations will increase to 22 above 700 EUR
VAT rates increase
From 2025 :
VAT on accommodation services rises to 13 percent (from 9 percent).
VAT on journalism increases to 9 percent (from 5 percent)From July 1, 2025: VAT rises by 2 percentage points to 24 percent
Motor vehicle tax
From January 2025, a two-part vehicle tax will be introduced in Estonia:
A registration fee, payable when a vehicle is first registered or changes ownership in the national traffic registry.
An annual motor vehicle tax, based on parameters like weight and CO2 emissions.
Excise taxes rise
From January 2025:
Alcohol and tobacco excise taxes increase by 5 percent.
Tobacco excise rises an additional 5 percent from July.
Fuel excise taxes: Gasoline by 5 percent, diesel by approximately 7 percent and electricity by approximately 40 percent.
Source ERR
European Central Bank cuts main interest rate by 0.25 points
06/08/24
A figure tied to many loans in Estonia, the six-month Euribor, or Euro Interbank Offered Rate, on Monday fell by 0.059 percentage points to 3.494 percent.
This marks the first time recently that the six-month Euribor has fallen below the 3.5 percent mark.
Effective June 12, the ECB lowered the interest rates on its main refinancing operations, marginal lending facility and deposit facility to 4.25 percent, 4.50 percent and 3.75 percent, respectively.
On July 18, the Governing Council of the ECB decided to leave these rates unchanged.
Source ERR
Average purchase milk price fell in Estonia in 2023
25/01/24 News .. In 2023, Estonian farmers sold 859,600 tonnes of milk for nearly €375 million, reports Statistics Estonia. The average price was €436.73 per tonne, a 5.8% decrease from the previous year.
Eesti Energia's third-quarter profit is up 55 per cent
02/11/23 News .. The Eesti Energia Group reported third quarter sales of €408 million, with 66 percent coming from outside Estonia. Their normalised net profit for the quarter stood at €39 million, a 55 percent increase from the previous year.
October in Estonian supermarkets: Meat getting more expensive
02/11/23 News .. In Estonian shops, although food prices have slightly reduced, the decrease is primarily minimal, and the majority of products have become more costly over the years. Last month, no meat product experienced a price decline, and both rye and white bread saw a 20% price increase year-on-year.
Eesti Gaas will increase prices starting 1st December
01/11/23 .. Starting 1st December, the cost of Eesti Gaas’ household flexible package will rise by 27 percent, equating to 75 pence per cubic metre.
Selver: Shoppers in Estonia only buying most necessities
01/11/23 .. In Estonia, consumers focus on purchasing essential items and leaning towards discounted products. At the same time, the sales of manufactured goods appear subdued for the foreseeable future, noted Selver’s business accounting director, Kristjan Anderson, on Tuesday.
Consumer prices witnessed a 5 per cent increase in October year-on-year.
31/10/23 .. Estonian consumer prices increased by 5 per cent in October compared with the same month last year, according to a flash estimate from Statistics Estonia.
Fossil fuel could rise by nearly 40 cents in 2027
30/10/23 .. The German research institute projects a potential increase of approximately 40 pence per litre in fossil fuel prices by 2027 due to the ETS’s expansion into transport. Meanwhile, the Ministry of Climate forecasts a more modest rise of up to 10 per cent.
Estonia's third-quarter GDP is down 2.5 per cent
30/10/23 .. According to an initial evaluation by Statistics Estonia, Estonia’s GDP saw a 2.5 per cent reduction in the third quarter of 2023 compared to the same quarter in 2022.
The Estonian housing market has declined by one-third, reverting to levels seen a decade ago.
28/10/23 .. Year-on-year, Estonian housing market transactions have decreased by a third. Even with the halt in interest rate increases, property analysts are sceptical about a market resurgence. They suggest the apartment market is reminiscent of 2015-2016, while certain regional single-family home markets hark back to levels seen in 2013 or 2014.
Telia plans 95 per cent coverage for the 5G network by the end of 2024
27/10/23 .. Telia aims to extend its 5G network to encompass 95 per cent of Estonia’s populace by the close of the upcoming year, as reported by Postimees. At present, they have achieved coverage for about 75 per cent.
