Eesti Maavara OÜ buys forest land and logging rights for their sustainable, viable and efficient management. This will provide beautiful, healthy and high-quality forest for future generations, which is exactly our mission.
We package with both the purchase of forest land and logging rights, due to which we can offer a competitive price in all parts of Estonia regardless of the volume and size of the plot. This is beneficial for the landowner as well, as the larger volume you sell at once, the higher the price you can request. Our cooperation partners include the majority of the most famous forestry companies in Estonia. Thanks to the packaging, we can provide very high quality and always take full responsibility for the work done.
We work in the following counties:
- Läänemaa (Vormsi saarel ainult ost)
Sell forest land or logging right?
In this case, you need to ask yourself the question: Do I see myself engaged into my forest activities in the future? There is a widespread misperception that after logging trees or squeezing maximum profit out of the forest all responsibilities for forest management are fulfilled. In fact, according to the Forest Law, forest owners are obliged to ensure the renewal of the logging area as well. That is, income from alienation of logging is accompanied by expenses as well. Prices for soil preparation and planting start from EUR 700 per hectare.
TThe second important issue for consideration is the way how the real estate was obtained. The primary sale of land returned in due time is not subject to income tax, but the alienation of logging right is subject to a 20% tax. When selling real estate received on the basis of a gift agreement, all income is subject to a tax. So, it is worth thinking about how you can retain most of the income.
Whether it is more beneficial to sell the forest together with the land or as a logging right depends on the further plans of the owner himself and on how this owner received the propert
Factors influencing the value of forest land
Why sell forest land?
Doing forest management on your own is time-consuming.
Forest requires a competent approach and constant care. To get the maximum profit from your forest, you must also invest in it. You need to carry out sanitary felling, as well as a felling for lightening and thinning. Depending on the forest's peculiarities, there may be other tasks that require investment, such as digging and upkeeping of drainage ditches in super-humid places.
Forest treated with professional care has a future
Selling forest land to a company that is professionally engaged in forestry, you can be sure that your property will be treated with care, and that a long-term plan will be created for the most effective forest management. As each land plot is unique, there is no single action plan. Future logging and growth of the new forest generation in the form of its renewal are planned depending on the forest's peculiarities. For the forest to remain the greatest asset for future generations, we must invest in it today.
Exemption from income tax on sale of land
The primary sale of land returned during the reform is not subject to income tax. This also applies if the land was inherited in the interval. In our work we often meet owners who first sell the felling right, and as several years pass – the felling area as well, because they have no desire or money to renew the forest. But this way the owner of the forest land loses 20%, which is applied to alienation of felling right. The way how to sell the forest, together with the land or in the form of felling right, shall be carefully weighed and, if possible, it is better to get advice from professionals.
Ready-to-cut and mature forest will not become more mature
There is a widespread misperception that if the forest has stood for 100 years, it will stand for another 100 years. Such opinion, unfortunately, will get you only so far. Forest maturity age for different types of trees is established by professionals based on extensive experience and is also specified in the Forest Law, as it is at this age that the forest is the most valuable and healthy. When the maturity age ends, trees become more susceptible to diseases, which does not add value to the forest. Mature forest requires proper care and management!
To carry out the forest land purchase-and-sale transaction, one shall conclude a proprietary or binding contract at the notary office. A proprietary contract is a usual purchase-and-sale contract – the sale price is paid immediately and the property is transferred to the new owner. A binding contract can be used when the terms and cost of sale are set, for example, when the buyer waits for some other part of the purchase price.
For both parties, the most secure is to transfer the purchase and sale amounts through the depositary account of the notary, which, in fact, is an ordinary bank account where the notary stores the amount transferred there and, after signing the contract, transfers it to the seller's account within three banking days. In this case, it is necessary to take into account that the money must be transferred to the depositary account of the notary prior to making a transaction, and that the sender of the money must be a party to the transaction – if the money is transferred by a third party, then that person must also participate in the transaction.
The highest purchase price in Estonia – examples of recent transactions