The official allegedly received state support to rent an apartment owned by his stepson in Tallinn.
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Estonian Minister of Justice Kalle Laanet resigned Saturday over a corruption allegation.
The member of the ruling Reform party had allegedly been renting a Tallinn apartment from his stepson's company during his time in office and had the expenses reimbursed by the state. Since 2021, the total amount was about €12,000, according to local media.
"To ensure legal clarity and the peaceful functioning of government, I decided today that I will not be continuing in office as the minister of justice," Laanet said.
Laanet denies the allegations. He says he decided to resign to "protect his relatives from public attacks."
Estonian Prime Minister Kaja Kallas has accepted Laanet's resignation and expressed gratitude for the minister's service. Laanet is expected to remain in office until President Alar Karis appoints a replacement.
Laanet was Estonia's defence minster for a year until 2022. He became justice minister last April.