Barring land sales to foreigners meets growing resistance

TALLINN (BNS) - A proposal to change the effective law to tighten restrictions on the sale of land to foreigners is meeting with a mixed reception.

The association of Estonian real estate companies EKFL is opposed to limitations stipulated in a bill on restrictions on transfer of immovable property to non-residents which is currently under discussion in parliament.

One-third of arable land lies fallow as it is, the EKFL claims. Thus, there is nothing wrong with selling land to foreign investors. The association claims that acquisition of real estate and land is a guarantee that will encourage investors to come to Estonia.

Since the planned amendment, if adopted, will also toughen conditions for the sale of land to foreigners in Tallinn, requiring endorsement by the city council instead of the municipal government, Tallinn's deputy mayor, Priit Vilba, also spoke out against such a restriction.

Members of the parliamentary opposition presented the bill on restrictions at the end of January on the grounds that the effective law sets unjustified restrictions on bringing in foreign capital and foreign investments into enterprise in Estonia.

The supporters of the bill maintain that the effective law has failed to curb and prevent acquisition of land through fronts and buying up of land for speculative purposes. At the same time the bill sets new restrictions on acquisition of land in several regions of the country.

Under the bill, non-residents may acquire agricultural and forest land as immovable property outside restricted zones with the permission of the local government provided they have resided in the territory of the local government for a minimum of five years.

In addition, they are required to have special education or vocational skills necessary for agricultural production or forest management.

Under the bill the government will have the right to make exceptions in individual cases if this is in the state's economic interests.

For the purposes of the bill, non-residents are persons who are not citizens of Estonia, except for foreigners who hold a permanent residence permit.