Selling forest land or woodland is a major decision for landowners. It’s often a once or twice-in-a-lifetime event involving large sums of money, with major tax implications and a considerable emotional investment. This guide will focus on how to sell forest land in Estonia, as illustrated by Vestman.
Understanding the Value of the Forest Land
Legislation in Estonia defines forest land as a plot of at least 0.1 hectares where trees grow to a height of 1-3 meters. The crowns cover at least 30% of the plot. The value of the forest land depends primarily on the species and age of the trees, as well as the volume, site quality, and accessibility. The value can only be accurately gauged by conducting a field inspection and inventory of the forest.
Determining the Value of Your Forest
The forest management plan gives the landowner a good overview of the forest property’s value. This comprehensive plan covers a period of ten years and provides in-depth insights into the value of the forest and any necessary activities for its care and preservation. With the data provided by the plan, the landowner can decide whether to sell as a standing volume or as a property.
Options for Selling
There are two ways to sell forest land in Estonia. You can sell the property or the standing volume, also known as the felling rights.
Selling the property: In a forest land sale, the entire property is transferred to the buyer. The transaction is notarized, and the property is transferred to the buyer after the conclusion of the deal. The seller receives the most profit in such transactions.
Selling the felling rights: Alternatively, a forest owner may opt to sell the felling rights while retaining ownership of the land. This procedure allows the owner to profit from the sale of the timber while still promoting their forest’s growth or cultivating a new one for future generations.
Seeking Expert Advice
When considering selling forest land, it’s crucial to request comparable price offers for your forest or felling rights. Comparison enables the owner to understand the actual value of their forest and ensures they get a fair price for the transaction. It is advisable to avoid intermediaries often discussed in media and to verify the background of the offering company. A responsible forest manager with long-term experience in managing forests can probably appreciate the Estonian forest the most.
The Transaction Process
After successfully determining the price, the purchase and sale agreement is finalized at the notary. The company Vestman offers professional assistance throughout the process, leveraging their extensive experience in forest management. They pride themselves in carrying out the entire process smoothly and painlessly, ensuring both the welfare of their clients and the environment.
Keeping Abreast of the Laws
Various laws regulate the metsamaa müük in Estonia, including the Forest Act, Nature Conservation Act, and Water Act. These should be kept in mind during the sale.
Selling forest land in Estonia can be a daunting process, but with the proper knowledge and expert assistance, it would become a worthwhile endeavor.