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Real estate investment in Finland

Foreigners can freely buy and sell apartments in Finland. To purchase a land plot with a house, one needs permission from the Ministry of Defence of Finland.

The growth of residential real estate prices is low: every quarter, on average, by 0.6%. Five years ago, an apartment of 100 m² cost an average of €344,000, and today it is sold for €382,000.

€3,816 Average price per 1 m²
of housing in Finland
0,6% Average price per 1 m²
increase per quarter
4,05% Buyers’ related expenses,
of the transaction amount

Cost of a 3-bedroom apartment in Finland

€1.5 million

Penthouse
in the centre of Helsinki

€800,000

Apartment
in the centre of Helsinki

€500,000

Apartment
in Helsinki or Espoo

What do investors buy?

Finland’s most expensive real estate is in the capital region: the cities of Helsinki, Espoo, Vanta, and Kauniainen.

Apartments

  • penthouses and
  • duplexes
  • apartments

Houses

  • mansions and townhouses
  • villas and houses with terraces

Finland residence permit or citizenship by real estate investment

Obtaining a Finland residence permit or citizenship is not connected with purchasing real estate.

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Taxes and associated costs

Purchase
Ownership
Sale

Property buyers pay a transfer tax and a registration fee. The associated costs amount to 4.05% of the purchase agreement value.

When buying an apartment worth €500,000, the investor will spend €520,250, including additional costs.

4.05% Of the contract value are related costs for the purchase of housing in Finland
Purchase expenses
Transfer tax
4%

Of the transaction amount

Registration fee
0.05%

Of the transaction amount

Taxes

Property owners pay an annual tax of 0.4% to 6% of the cadastral value. The rate is set by municipalities depending on the property type: an apartment or a house, the primary residence or a holiday home, a building or a land plot.

In the case of an apartment building, the housing joint-stock company pays the tax: it is divided among apartment owners in proportion to their stock of shares.

Rental income is subject to an income tax at a progressive rate of 30% to 34%.

€1,308 Approximate annual costs for
maintenance of an apartment

Communal payments

Electricity, gas, water, heating, and garbage collection
€53—200 

per month

Internet, TV and telephone
€19—35 

per month

Real estate sellers pay a capital gains tax at a progressive rate of 30% to 34% on the difference between the sale and purchase prices.

The agency fee ranges between 4% and 6%.

30—34% Capital gains tax on the sale of
real estate in Finland
Expenses on the sale
Capital gains tax

Paid on the difference between the sale and purchase prices

30—34%
Agency fee
4—6%

VAT included

Frequently asked questions

Can foreigners buy property in Finland?

Foreigners can buy and sell apartments in Finland without restrictions, and to buy a land plot with a house, they need to get a permit from the Finnish Ministry of Defense.

Is Finland good for real estate?

The real estate market in Finland has been recovering after the 2022 crisis caused by geopolitical issues. Right now, property prices have been growing by 0,6% every quarter.

Property owners in Finland receive advantages when applying for a residence permit in the country, and they are also more likely to receive a multiple-entry Schengen visa.

What is the average house cost in Finland?

The average cost of residential real estate in Finland is €3,816 per 1 m².

Does Finland have property tax?

Yes. Property owners in Finland pay an annual property tax in the amount of 0,4%— 6% of the cadastral value. The rate is set by municipalities depending on the real estate type: apartment or house, main dwelling or cottage, building or land plot.

For an apartment building, the tax is paid by a housing joint-stock company.