1. Rent Smart: Location Is Everything in Estonia

For most people, rent will be the biggest monthly expense in Estonia.

If You’re Young and Single

If you’re new to life in Estonia and living alone:

• Consider a shared apartment.

• Stay closer to the city center.

• Prioritize social access over space.

Estonia can be surprisingly lonely — especially during the dark winter months. Living far from Tallinn or Tartu’s center might save money, but isolation can cost you mentally.

If You’re Remote Working or Moving with Family

If you:

• Work remotely

• Have a partner or family

• Don’t depend on daily commuting

Then consider living outside Tallinn or even outside Harjumaa.

Rental prices drop significantly once you move away from central Tallinn. Yes, you may need a car — public transport doesn’t cover every rural corner — but the savings can be substantial.

Bottom line: Align your rent with your lifestyle stage. In Estonia, location dramatically affects your budget.

2. Utilities: Understand Your Electricity Package

Utilities are usually your second biggest expense in Estonia.

Electricity prices have increased significantly in recent years, especially after the war in Ukraine.

If you’re choosing an electricity package, you’ll generally have two options:

• Universal (fixed rate) package

• Flexible (market-based) package

For most people, especially renters, the universal flat-rate package offers more stability and predictability. The flexible package can fluctuate heavily depending on the time of day and market prices.

Renting? Read Your Contract Carefully

In Estonia, rental contracts may include:

• Electricity

• Heating

• Garbage

• Building maintenance fees

• Repair fund (remondifond)

Technically, the repair fund should be the owner’s responsibility — but landlords often pass it on to tenants. Always confirm in writing what you’re responsible for.

In Estonia, contracts are clear — but only if you read them carefully.

3. Groceries & Eating Out: Where Money Disappears Fast

Groceries in Estonia are expensive. There’s no sugarcoating it.

Use Client Cards Immediately

Every major grocery chain in Estonia has loyalty cards:

• Coop

• Rimi

• Selver

• Prisma

• Lidl

These cards genuinely make a difference. Discounts are often significant.

If you’ve just arrived in Estonia — get these cards in your first week.

Shop Strategically

• Batch your purchases.

• Avoid daily mini-trips to the store.

• Compare chains.

Lidl, in particular, has become known for noticeably lower prices compared to some traditional Estonian chains.

Eating Out in Estonia

Dining out in Estonia is not cheap — and frequent takeaways add up quickly.

Ask yourself:

• Is the time saved worth the cost?

• Are you ordering out of convenience or habit?

If you’re earning well and value time over cooking — that’s fine. But if you’re trying to build savings, limiting takeaway orders can make a serious difference.

And yes — your health will thank you.

4. Clothing & Electronics: Estonia Is Expensive

This is where many newcomers get surprised.

Clothing: Buy Used (It’s Normal Here)

One of the best things about life in Estonia is the strong second-hand culture.

Shops like Humana and other thrift stores offer:

• High-quality used clothing

• Extremely low prices

• Sustainable fashion choices

Buying used is socially accepted and common in Estonia.

Electronics: Compare International Prices

Electronics in Estonia are often significantly more expensive than in:

• Germany

• Poland

• Other EU countries

If you’re traveling abroad anyway, consider buying:

• Laptops

• Phones

• Cameras

Elsewhere in Europe.

Price differences can be surprisingly large.

5. The Most Important Rule: Focus on Earning, Not Just Saving

This is the mindset shift that changes everything.

Saving money is important — but in Estonia, increasing your income often has a bigger impact.

Sell What You Don’t Use

Most households have unused items sitting around.

Platforms like:

• Facebook Marketplace

• Osta.ee

• Yaga

Make it easy to convert clutter into cash.

Start an OÜ (Private Limited Company)

Estonia is one of the easiest places in the world to start a company.

If you:

• Offer freelance services

• Work remotely

• Have side projects

Opening an OÜ (osaühing) can unlock tax efficiencies and flexibility.

For example:
If you work from home, you may deduct part of your:

• Rent

• Utilities

• Internet

As business expenses.

You’ll need an accountant for this — but Estonia’s digital business environment makes entrepreneurship surprisingly accessible.

Many people in Estonia combine:

• Employment income

• Freelance work

• Small business services

That hybrid model works well in the Estonian system.