Intended purpose: construction, renovation or reconstruction of a dwelling, modification, construction or replacement of utility systems

CONSTRUCTION

Please send questions concerning the disbursement and documents to the e-mail address toetused@kredex.ee or by post to SA KredEx, Hobujaama 4, 10151 Tallinn (keyword “Kodutoetus” (Home Support) on the envelope).

Terms and Conditions

To ensure that the right to disbursement of the support is created for the support recipient who is the owner of the dwelling, the recipient may not have

  • pending enforcement proceedings for the collection of debt according to the enforcement register,
  • unsettled debts (payment defaults) exceeding EUR 1500 according to Creditinfo,
  • court judgments that have entered into force for initiating natural person’s bankruptcy proceedings or declaring a natural person bankrupt, unless the person is released from the obligation not satisfied in the bankruptcy proceedings.

The dwelling for which the support is applied for must have no notations concerning a prohibition on transfer of property in the land register.

The restrictions do not apply if the dwelling is in the ownership of the support recipient’s child up to 15 years of age.

The support recipient undertakes to

  1. implement the project within two years as of the decision on the approval of the application;
  2. ensure the self-financing necessary for implementing the project;
  3. use the dwelling, for which the support was received, with his/her household at least within two years as of the disbursement of the support.

1. Notification

The support recipient shall present to KredEx five working days before commencement of the project activities a written notification in a free format about his/her intention to commence the implementation of the project.

KredEx shall check the object and the databases related to the support recipient to make sure that there are no restrictions for the disbursement of the support (payment default, notations concerning a prohibition on transfer of dwelling, enforcement proceedings, natural person’s bankruptcy, etc.).

If there are no restrictions on disbursement, a support manager from KredEx shall send a respective confirmation to the support recipient by e-mail and the recipient may commence the activities.

NB! KredEx verifies the absence of these restrictions before each disbursement.

2. Building permit or building notice 

The support recipient shall ascertain from the local city or rural municipality government whether a building permit or a building notice and building design documentation is required for the activities of the project.

Before commencing the activities, the support recipient shall forward to KredEx

  1. a reference to a building permit entered in the register of construction works, or
  2. a building notice, or
  3. a written response of a local government (e-mail is enough) that the planned works do not constitute construction within the meaning of the Building Code and that accordingly, a building permit or building notice is not needed.

A building notice or building permit is mandatory for activities, in the course of which the properties of the construction work are significantly altered. Such activities include, for example, construction of an attic, insulation of the facade, replacement of roofing and/or insulation of the roof, building an extension, changing the design of the dwelling, glazing of balconies, as well as alteration, establishment and replacement of utility systems.

A building notice or building permit is not mandatory, for example, in case of interior completion of the dwelling, replacement of windows and doors and partial renovation of the electricity system. Within the meaning of the Building Code, these activities are replacement with equivalent elements.

A solid fuel furnace, fireplace, kitchen range or another heating device and chimney and connection flue may be built only by a competent person possessing the professional certificate of a potter, who shall issue a passport for the heating device after completion of the works. If the heating device was made by a manufacturer outside the European Economic Area, the device must have a CE certificate and at least a two-year warranty issued by the manufacturer.

If the support recipient establishes, alters or replaces the electricity or gas system of the dwelling, he/she must order an audit of electrical or gas installations and present its results to KredEx.

3. Budgeted works 

The support recipient must use the support for the works that were specified in the construction budget enclosed with his/her application.

If the recipient wants to make changes to the budgeted works, he/she must submit an application to KredEx that has been signed either digitally or on paper prior to the disbursement of the support. KredEx shall approve the changes and send the relevant confirmation to the support recipient’s e-mail address.

The support recipient may make changes

  • to the building materials and products or devices, their quantities and prices, specified in the price quotes and the deadlines of quotes, submitted together with the application. Accordingly, the recipient may also order services and purchase building materials and products or devices for the allocated support from other suitable companies throughout Estonia, provided that this will result in the completion of the works for which the support was allocated;
  • to the manner in which works are performed, provided that the change has been previously approved by KredEx by e-mail or post. This means that the applicant may personally perform the works he/she initially planned to order from a construction company and use the money that was not used for purchasing the service, for buying building materials, or vice versa, to order from the construction company the works that he/she planned to do by him or herself.

The application for changing budgeted works is available here.

4. Eligible and ineligible costs

Eligible costs include (i.e. these costs can be made from the support money) the purchase of disposable tools (paint brushes, masking tapes, sand paper, work gloves, etc.), purchase of sanitary installations (bath, shower cabin, toilet bowl, faucet mixer, hot water boiler, etc.), purchase of luminaires as a part of renovating the electricity system, tool rental, removal of building waste and transport of building materials (if the service is provided by the seller of materials and the service charge is included in the same invoice with the materials).

The following is not eligible (i.e. these costs cannot be made from the support money) purchase of reusable tools (cordless drill, saw, cement mixer, hammer, screwdriver, etc.), excessive and sumptuary costs (Jacuzzi, hot tub, etc.), purchase of household appliances (stove, air cleaner, electric heater, ventilator, electric hand drier, etc.), purchase of furniture and parts thereof (kitchen furniture, sink cabinet, bathroom furniture, mirror, sliding doors, wooden boards for building the furniture, door hinges, cabinet knobs, wardrobe goods, etc.) and purchase of interior elements (curtain rods, blinds, carpet, mirror, etc.).

5. Performance of works and disbursement of support

The support recipient may use the support

  1. for purchasing building materials and products or equipment (and to perform the construction or installation works by him or herself);
  2. for ordering the construction or installation works from a company or sole proprietor (those who received the support until 2019 (included), were allowed to order the works also from private individuals).

The support is paid to the support recipient in instalments or in a lump sum, depending on the nature of works.

The minimum disbursement amount is EUR 500 (as an exception EUR 650 for those who received the support in 2017–2019).

5.1. Disbursement of support to a support recipient who orders the construction or installation works from a company together with the building materials and products or equipment

1. The support recipient shall select the company that is suitable in terms of its quality, price and reliability for the performance of the construction works together with purchasing the building materials and products or equipment. The support recipient agrees with the company on the terms of payment and shall conclude a contract for services, to which a price quote is annexed.

2. A company may request prepayment from the support recipient in the amount of up to 30% of the total contract value for services, for purchasing the building materials and products or equipment required for the works. The prepayment for the manufacturing and installation of windows and interior and exterior doors may be up to 50% of the contract value. To receive the prepayment, the company will issue a prepayment invoice in the name of the support recipient.

For the payment of the prepayment invoice, the support recipient shall submit to KredEx
1) a disbursement application, prepared on the basis of the prepayment invoice and signed by the support recipient (the form is available 
here);
2) a contract for services signed by the company and the support recipient and the price quote;
3) a prepayment invoice.

KredEx shall pay the prepayment invoice amount to the company’s current account within ten working days and shall inform the support recipient of the disbursement date by e-mail.

3. The company shall perform the construction or installation works and shall deliver these to the support recipient upon completion, formalising an instrument of delivery and receipt for the works and final invoice. If the support recipient has no complaints against the company, they will sign the instrument of delivery and receipt digitally or on a paper.

4. For the payment of the final invoice, the support recipient shall submit to KredEx
1) a disbursement application, prepared on the basis of the final invoice and signed by the support recipient (the form is available 
here);
2) an instrument of delivery and receipt for the works;
3) a final invoice;
4) a final report on using the support and photos of the performed works when the works have been completed and the support will be disbursed in full.

KredEx shall pay the invoiced amount to the company’s current account within ten working days and shall inform the support recipient of the disbursement date by e-mail.


5.2. Disbursement of support to a support recipient who only orders construction or installation works from a company, sole proprietor or private individual

NB! Works may be ordered from a private individual only by a household that received the support prior to 2020.

1. The support recipient shall select a company, sole proprietor or a private individual, who is suitable for performing the works in terms of quality, price and reliability. The support recipient shall agree with the contractor on the terms of payment and shall conclude a contract for services, to which a price quote is annexed.

2. The contractor shall perform the construction or installation works and shall deliver these to the support recipient upon completion, formalising an instrument of delivery and receipt for the works and final invoice. If the support recipient has no complaints against the contractor, they will sign the instrument of delivery and receipt digitally or on a paper.

3. For the payment of the invoice, the support recipient shall submit to KredEx
1) a disbursement application, prepared on the basis of the final invoice and signed by the support recipient (the form is available here);
2) an instrument of delivery and receipt for the works;
3) a final invoice;
4) a final report on using the support and photos of the performed works when the works have been completed and the support will be disbursed in full.

KredEx shall pay the invoiced amount to the contractor’s current account within ten working days and shall inform the support recipient of the disbursement date by e-mail.


NB! To order works from a private individual, the support recipient must 1) register such a private individual in the employment register and 2) include in the remuneration the income tax, social tax and unemployment insurance premium (also a mandatory funded pension payment, if the employee is an obligated person of the funded pension). After the disbursement, the support recipient shall complete a tax return form for this private individual. More detailed information is available on the homepage of the Tax and Customs Board. If the private contractor has an entrepreneur account at LHV Pank, the support recipient shall not be subject to these obligations, as the taxes are paid and the tax returns are filled automatically on the basis of the entries of the entrepreneur account. More information is available on the homepage of LHV Pank.

5.3. Disbursement of support to the support recipient who purchases the building materials and products or equipment and performs or organises the construction or installation works by him or herself

1. The support recipient selects as the seller of building materials and products or equipment a company that has been entered in the commercial register. The seller may not be a company owned by the support recipient or a company in which the majority of votes belongs to the support recipient.

2. The support recipient orders from the company the desired building materials and products or equipment and the company shall formalise prepayment invoice(s) or an order confirmation in the recipient’s name. If possible, the deadline of the invoice should be set to be up to two weeks.

NB! A price quote is not a document requesting payment and KredEx will not disburse the support on the basis thereof.

3. For the payment of the prepayment invoice(s), the support recipient shall submit to KredEx
1) a disbursement application, prepared on the basis of the prepayment invoice(s) and signed by the support recipient (the form is available here);
2) prepayment invoice(s).

The support recipient may enter the invoices issued by several companies on one disbursement application and present it to KredEx for payment.

The minimum disbursement amount is EUR 500 (as an exception EUR 650 for those who received the support in 2017–2019).

4. KredEx shall pay the amount of the prepayment invoice(s) to the company’s current account and shall inform the support recipient of the disbursement date by e-mail.

5. When the support recipient has received the purchased goods, the applicant must request from their seller a final invoice or delivery note confirming the receipt of goods. The list of goods in it has to correspond to the goods listed in the prepayment invoice.

The support recipient shall present the final invoice or delivery note to KredEx together with the subsequent disbursement application or the final report on using the support.

5.4. Disbursement of support to the support recipient who performs or organises the construction or installation works by him or herself and to whom KredEx reimburses the costs made for that

The support recipient may purchase the building materials and products or equipment required for the works fully or partly using own funds.

KredEx will reimburse the costs,

  1. which the support recipient has made after the decision on the allocation of the support has entered into force, and
  2. which are in conformity with the objectives of the supported activities and of the support (except for the cost of compiling the building design documentation, if the documentation was compiled after 1 March 2016).

The support recipient shall pay for the goods using his/her personal debit or credit card or by bank transfer (not cash). The purchase invoices and receipts must be in the name of the support recipient (KredEx does not reimburse anonymous purchase invoices and receipts or cash cheques).

The minimum disbursement amount is EUR 500 (as an exception EUR 650 for those who received the support in 2017–2019).

1. For the reimbursement of the cost of purchase invoices and receipts, the support recipient shall submit to KredEx
1) a disbursement application prepared on the basis of purchase invoices and receipts, bearing the signature of the support recipient (the form is available here);
2) copies (not originals) of purchase invoices and receipts;
3) payment orders or a bank account statement evidencing the payment.

2. KredEx shall transfer the amount of purchase invoices and receipts to the support recipient’s current account and shall inform the support recipient of the disbursement date by e-mail.

The support recipient may enter the purchase invoices and receipts issued by several companies on one disbursement application and present to KredEx for payment.

6. Submitting the interim and final report and photos

The support recipient shall present to KredEx an interim and final report on using the support. These must be signed digitally or on a paper by one parent.

The form of the interim and final report is the same (the form is available here).

1. The support recipient shall submit an interim report to KredEx after 50% of the support amount has been disbursed or half of the term for performing the works has passed. Photos need not to be appended to the report.

2The support recipient shall submit the final report to KredEx within 30 days after all supported works have been completed.

In the case of construction or remodelling of an uninhabitable (i.e. unfinished) dwelling, the support recipient shall present to KredEx the final report after taking the housing into use and registering it as the residence of his/her household members (not within 30 days after completion of the supported works).

The final report must include one or two photos of the works that were performed and listed in the final report. The photos must be clear and give an overview of the completed works. You do not need to enclose photos of the work process.

Name each photo to explain what is depicted.

Choose a suitable manner for submitting the photos:
a) copy all digital photos into one Word document (and send it together with the final report at the e-mail address 
toetused@kredex.ee);
b) attach the digital photos to an e-mail (and send together with the final report at the e-mail address 
toetused@kredex.ee). Large photos can be sent with several e-mails (the volume of one e-mail may be up to 10 MB);
c) if you are not able to send photos by e-mail, order paper photos of digital photos or print out colour photos and send these to KredEx together with the final report by post (AS KredEx, Hobujaama 4, 10151 Tallinn, keyword “Kodutoetus” (Home Support) on the envelope).

NB! Please do not use cloud services (e.g. Google Drive) for submitting your report or photos!

Rights and obligations of the support recipient

Parents, adoptive parents, foster parents and partners, who have jointly submitted the application are treated as the support recipient. Accordingly, the rights and obligations of the support beneficiary extend to them both.

The support recipient undertakes to

  1. implement the project within two years as of the decision on the approval of the application;
  2. use the dwelling, for which the support was received, as the dwelling of his/her household at least within two years as of the disbursement of the support; 
  3. inform KredEx if he/she wants to sell the dwelling within two years as of the disbursement of the support or if enforcement proceedings have been commenced against the applicant who is the owner of the dwelling.

It is not allowed to rent out the dwelling for which support was received within two years as of the disbursement of support.

If the dwelling is sold (incl. expropriated) within two years after the disbursement of the support, the support recipient is obliged to repay the support (except for if the recipient uses the proceeds of the sale to buy a more suitable dwelling for the household).

The support recipient is obliged to inform KredEx if a need arises to change the activities specified in the application or the deadline of their implementation, as well as of circumstances which may affect the fulfilment of his/her obligations.

In justified cases, the support recipient has a right to extend the period of using the support once by up to 12 months. For that, the support recipient shall submit to KredEx a signed application prepared in a free format before the end date of the decision on allocating the support (two years as of making the decision on the approval of the support).

NB! If the support recipient fails to implement the activities, for which the support was allocated, by the end date of the decision (incl. by the extended date) and has also failed submit to KredEx an application for extending the term or on the waiver of the support, the support recipient will no longer be eligible to apply for home support in the future.