Finland

Real estate websites
STEPS
Check Eligibility
- Non-Residents: Foreigners are generally allowed to buy property in Finland, including land. However, non-EU citizens may face some restrictions on purchasing land, especially agricultural or forest land. To buy property in Finland, non-EU nationals need to apply for permission from the Finnish authorities.
- Financing: Foreign buyers can secure financing from Finnish banks, but typically a larger down payment (around 30% to 40%) may be required, and buyers must have a stable financial history.
Determine the Budget
- Budgeting: It is important to determine the budget, taking into account the cost of the property, taxes, notary fees, and any additional expenses like registration fees and home inspection costs.
- Mortgage: Finnish banks typically lend up to 80% of the property's value, meaning the buyer needs to cover the remaining 20% to 30% of the purchase price.
Find a Property
- Online Search: Websites like Oikotie (oikotie.fi) and Etuovi (etuovi.com) list properties for sale in Finland. Buyers can filter results based on their budget, location preferences, and property type.
- Real Estate Agents: Working with a local real estate agent (kiinteistönvälittäjä) can help with finding properties, negotiations, and paperwork.
View the Property
- Inspections: It is recommended to arrange for a professional property inspection to assess the house's condition, including its structure and systems (e.g., plumbing, electrical).
- Visiting the Property: If you are not based in Finland, you can hire someone to visit the property on your behalf or arrange for a virtual tour.
Make an Offer
- Bidding: In Finland, most properties are sold based on a set asking price, but there is room for negotiation. Offers can be made, and a purchase agreement is usually drawn up once both parties agree.
- Contract: Once the offer is accepted, a purchase agreement (kauppakirja) is signed, and a deposit is typically required, which is often 10% of the purchase price.
Complete Legal Formalities
- Property Transfer Tax: Finland applies a property transfer tax of 2% of the purchase price for residential properties and 4% for other types of property, such as land or commercial buildings.
- Finalizing the Sale: After the purchase agreement is signed, the buyer and seller agree on the closing date. The final payment is made, and the buyer receives the keys to the property.
Register the Property
- Land Registry: The property transfer must be registered with the Finnish Land Registry (Maanmittauslaitos). This process ensures that the buyer legally owns the property.
- Insurance: It is advisable to arrange property insurance (asuntovakuutus) to protect the property after purchase.
Move In
- Once all formalities are completed, the property is ready for occupancy.
ADDITIONAL CONSIDERATIONS
- Legal Assistance: While the process is fairly straightforward, it is recommended to consult a local lawyer to help with any legal questions, especially for foreign buyers.
- Taxes and Fees: In addition to the property transfer tax, buyers should be aware of other costs such as notary fees, registration fees, and property tax.
ADDITIONAL NOTICES
- Property Transfer Tax: Finland applies a property transfer tax of 2% for residential properties and 4% for other property types.
- Land Ownership Restrictions: Non-EU nationals must apply for permission to purchase land, particularly agricultural or forest land, in Finland.
- Mortgage Financing: Foreign buyers may need to provide a larger deposit (typically 30% to 40%) when applying for a mortgage with Finnish banks.

In Finland, real estate taxes are regulated by the central government and local municipalities. The key types of taxes related to real estate in Finland include:

Property Ownership Tax

Real Estate Tax: In Finland, real estate tax is levied by local municipalities. The tax is calculated based on the property’s value, and the rates can vary depending on the municipality and the type of property.

  • The tax rate for residential properties typically ranges from 0.4% to 1.0% of the property’s value, while for business properties, the rate is generally higher.
  • Land tax rates are also assessed separately for residential and non-residential properties. Residential land tax rates are generally lower than those for commercial land.
  • The real estate tax is paid annually, and the property owner is responsible for payment.
Real Estate Transfer Tax

The real estate transfer tax is applied when a property changes ownership, such as during a sale or inheritance.

  • The standard tax rate is 4% of the property’s purchase price or the market value, whichever is higher, for residential properties.
  • The transfer tax rate for commercial properties is 2%.
  • The transfer tax is typically paid by the buyer at the time of purchase, and it must be paid within two months of the transaction.
Capital Gains Tax on Real Estate

Capital gains tax applies when a property is sold at a profit. However, exemptions may apply for primary residences under certain conditions.

  • The general capital gains tax rate is 30% on the profit made from the sale of the property (the difference between the sale price and the purchase price).
  • If the property was used as a primary residence for at least two years, the sale may be exempt from capital gains tax, provided the property has been owned for at least two years and the seller has lived in it as their primary residence during this time.
  • For properties owned for more than 10 years, the capital gains tax may be reduced or eliminated in certain cases, such as if the property was used for personal use.
Inheritance and Gift Tax

Finland imposes inheritance and gift taxes on the transfer of property through inheritance or gifting.

  • The inheritance tax rate depends on the relationship between the deceased and the beneficiary. The rates for direct heirs (children, spouses) range from 7% to 19%, and for other beneficiaries, the rates can go up to 33%.
  • Gift tax rates are similar to inheritance tax rates, and they apply to the transfer of real estate as a gift.
  • If a property is inherited or gifted, any capital gains tax will apply if the property is later sold at a profit.
Municipal Tax

In addition to real estate tax, some municipalities in Finland may impose additional taxes or charges for local services or infrastructure. The rates can vary depending on the municipality and the type of property.

Income Tax on Rental Income

If rental income is generated from real estate, it is subject to income taxes at the federal level.

  • Rental income is taxed as part of the overall personal income tax, with rates ranging from 6% to 31.25% depending on the income level.
  • Property owners can generally deduct related expenses, such as maintenance costs, property management fees, and mortgage interest, from their rental income to reduce taxable income.
Note: Tax rates and regulations can vary by municipality and individual circumstances. It is recommended to check with local authorities or consult a tax professional for accurate information.
Official
Republic of Finland
CIOC
FIN
Subregion
Northern Europe
Borders
NOR
SWE
RUS
Capital
Helsinki
Area
338 424 km²
Population
5 531 000
Timezones
UTC+02:00
Phone
+358   
Currencies
Euro (EUR €)