Toleration payment
Payment for tolerating utility networks and utility works – what a property owner should know
According to the Law of Property Act Implementation Act (AÕSRS), property owners who have our utility networks or utility works on their property that are used to provide services to other properties are entitled to payment. This is called a toleration payment and it is a periodic payment made annually.
When is no toleration payment paid?
- If the utility networks or utility works are only necessary for consumption of the service on the same property.
- If we have agreed with the property owner that no payment will be paid.
- If the amount of the annual toleration payment per property is less than 5 euros.
How is the toleration payment calculated?
The annual toleration payment is 3.5% of the assessed value of the land. This will be multiplied by the coefficients of the spatial and substantive extents of the restriction.
- The coefficient of the spatial extent of a restriction is the ratio of the area of the restriction to the area of the cadastral unit.
- The presumed coefficients of the substantive extents of restrictions are provided in the appendix to the Law of Property Act Implementation Act.
The assessed value of the land will be calculated based on data from the Land and Spatial Development Board. The exact amount can be calculated using the Land and Spatial Development Board's toleration payment calculator.
If a property has multiple owners, each co-owner is entitled to a toleration payment that is proportionate to their share of the property.
Taxation
- The toleration payment is partially tax-free: one seventh of the amount is not subject to income tax.
- If the payment is made to a natural person, the income tax will be withheld by the payer.
Got a question? Contact our Head of Servitudes
Koit Gross
koit.gross@tvesi.ee626 2281
How to apply for toleration payment?
In order to receive toleration payment for the utility networks or utility works, the owner of the property must submit a formal application. This applies regardless of whether the obligation to tolerate arises from:
- the law,
- a contract for the use of land, such as a contract establishing a personal right of use or another contract for the use of land, or
- compulsory possession.
Submitting an application
If a property consists of more than one cadastral unit, a separate application must be submitted for each cadastral unit.
If a property is divided into apartment ownerships, the application can be submitted by the apartment association. The payment will be made to the apartment association, who divides it between the apartment owners or sets it off against receivable management costs.
Please e-mail your application at tvesi@tvesi.ee or send it by post to:
AS Tallinna Vesi
Ädala 10, 10614 Tallinn
We will only contact applicants if we have further questions.
Making of payments
Payment for the current year will be made to the person who was the owner, co-owner, or joint owner of the property on 1 January, provided that the application is submitted by 1 May at the latest.
If the owner of the property changes, the new owner will receive the payment once a new application has been submitted, in accordance with the deadlines provided by law.
The toleration payment for the current year will be made to the bank account indicated in the application no later than 30 September.
If it appears that the the applicant is not entitled to the payment, we will inform them accordingly.
Validity of the application and changes to data
The application will be valid also for the following years, so there is no need to submit a new application each year.
You must immediately notify us, as the owner of the utility networks, of any changes to the data on which payment is based (e.g. the size of the co-ownership share, the owner's name, cadastral data, bank account details, etc.).
If changes are not reported, the application will be cancelled automatically and no payment will be made. In this case, the owner must submit a new application with the correct data by 1 May of the current year at the latest. A new application must also be submitted if the cadastral code of the land unit changes.
