Buying real estate in Finland?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

Can Americans buy property in Finland?

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Authored by the expert who managed and guided the team behind the Finland Property Pack

buying property foreigner Finland

Everything you need to know before buying real estate is included in our Finland Property Pack

Americans can legally buy property in Finland without needing citizenship or residency, though they must obtain a permit from the Ministry of Defence for land and house purchases. The process is transparent and can be completed remotely, with costs and taxes identical to those for locals.

The Finnish property market offers stable returns with average rental yields ranging from 4.14% in Helsinki to 7.43% in Jyväskylä, making it an attractive destination for American investors seeking European real estate exposure.

If you want to go deeper, you can check our pack of documents related to the real estate market in Finland, based on reliable facts and data, not opinions or rumors.

How this content was created 🔎📝

At InvestRopa, we explore the Finnish real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Helsinki, Tampere, and Turku. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can Americans legally buy property in Finland, and are there any specific restrictions compared to locals or other foreign nationals?

Americans can legally buy property in Finland without needing Finnish citizenship or residency status.

As a non-EU/EEA national, you must obtain a permit from the Finnish Ministry of Defence when purchasing real estate that includes land or a house situated on land. This permit requirement distinguishes American buyers from EU/EEA nationals who face no such restrictions.

The permit requirement does not apply to apartment purchases through housing companies (asunto-osakeyhtiö), which represents the standard ownership structure for flats in Finland. You also avoid the permit requirement if you purchase property on leased land, buy from a close relative, or hold dual citizenship with an EU/EEA country.

Additional restrictions apply to properties located near borders, defense installations, or strategically sensitive areas where the Finnish state may exercise pre-emption rights. These zones affect all foreign buyers equally, regardless of nationality.

Do Americans need to have a visa, residence permit, or citizenship to buy or own property in Finland?

No visa, residence permit, or citizenship is required to buy or own property in Finland.

Property ownership operates independently from immigration status, allowing Americans to purchase and hold Finnish real estate regardless of their legal residence status in the country. This separation means you can own property while living elsewhere or visiting Finland only occasionally.

However, buying property does not grant you residency rights or citizenship in Finland. If you wish to live in Finland long-term, you must apply for a separate residence permit based on qualifying grounds such as employment, entrepreneurship, study, or family connections.

It's something we develop in our Finland property pack.

Is it necessary for Americans to be physically present in Finland during the property purchase process, or can everything be done remotely?

The entire property purchase process can be completed remotely without requiring physical presence in Finland.

Finnish law permits the use of power of attorney for real estate transactions, enabling you to designate a representative to handle the purchase on your behalf. Much of the documentation and signing process can be managed digitally through the National Land Survey's online services and secure digital platforms.

For land and house purchases, a public purchase witness (notary equivalent) must witness the signing of the purchase agreement. This requirement can be fulfilled through your appointed representative if you choose remote completion, though apartment purchases through housing companies do not require witness presence.

The digital infrastructure in Finland supports remote transactions effectively, with secure online banking, digital signatures, and electronic document submission systems facilitating the process for international buyers.

What are the exact steps for an American to buy property in Finland, and what documents are required at each stage?

The property purchase process follows a structured sequence with specific documentation requirements at each stage.

Step Action Required Documents Needed
1. Property Search Find property via portals or agents None required at this stage
2. Due Diligence Inspect property and review documentation Energy certificate, property survey, building permits
3. Bank Account Opening Open Finnish bank account (optional) Passport, proof of address, income statements
4. Ministry Permit Apply for Defence Ministry permit if required Application form, passport copy, purchase agreement draft
5. Purchase Agreement Draft and sign contract with witness Signed agreement, witness certification
6. Transfer Tax Payment Pay 2-4% transfer tax Tax payment receipt
7. Ownership Registration Register with Land Registry within 6 months All previous documents plus title deed

Is hiring a lawyer or notary mandatory for Americans buying property in Finland, and what roles do they typically play?

Hiring a lawyer is not mandatory but strongly recommended for American buyers unfamiliar with Finnish property law and procedures.

A public purchase witness (similar to a notary) is mandatory for land and house transactions but not required for apartment purchases through housing companies. The witness ensures proper execution of the purchase agreement and verifies the identity of all parties involved in the transaction.

Lawyers typically handle due diligence, contract review, and coordination with various parties including banks, real estate agents, and government offices. They can identify potential issues with property titles, outstanding debts, or planned renovations that could affect your investment.

Legal representation becomes particularly valuable when language barriers exist or when dealing with complex properties such as those requiring Ministry of Defence permits or located in areas with special restrictions.

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investing in real estate in Finland

What are the taxes, fees, and annual costs Americans should expect when owning property in Finland, and how do these compare to Finnish buyers?

Americans face identical tax rates and fees as Finnish citizens and other property owners.

Transfer tax rates are 4% for real estate (land and houses) and 2% for housing company shares (apartments). Registration fees typically range from €150-€200, while public purchase witness fees cost approximately €120-€200 for land and house transactions.

Annual property taxes range from 0.41-1.0% for residential properties and 1-3% for vacant land, with rates determined by individual municipalities. Maintenance fees for apartments typically cost €100-€500+ monthly depending on the building's amenities and location.

Additional ongoing costs include utilities, insurance, and potential rental income taxes at rates of 30-32%, though maintenance costs can be deducted from rental income calculations. These expense structures apply uniformly regardless of the owner's nationality or residence status.

It's something we develop in our Finland property pack.

Can Americans get a mortgage from a Finnish bank, and what are the typical rates, down payment requirements, and approval conditions for non-residents?

Some Finnish banks will consider mortgage applications from Americans, but approval operates on a case-by-case basis with stricter requirements than for residents.

Down payment requirements typically range from 15-30% of the purchase price, significantly higher than the standard requirements for Finnish residents. Interest rates historically range from 0.9-2.5%, though these rates fluctuate with market conditions and individual creditworthiness assessments.

Banks require comprehensive documentation including proof of income, credit history, source of funds verification, and sometimes demand the establishment of a Finnish bank account. Some institutions require higher income levels or additional collateral from non-resident borrowers.

Alternative financing options include leveraging assets in the United States or working with international banks that have Finnish operations, though these typically involve higher costs and more complex approval processes.

Where do Americans tend to buy property in Finland, and what areas are currently considered the best for lifestyle, rental income, or capital growth?

Americans typically concentrate their purchases in major urban centers, particularly the Greater Helsinki area including Helsinki, Espoo, and Vantaa.

For lifestyle purposes, Helsinki offers the most cosmopolitan environment with international amenities, while Turku provides rich cultural experiences and Lapland attracts those seeking nature-focused living. Tech professionals often favor Oulu due to its technology sector concentration and university presence.

Rental yield opportunities are strongest in university cities like Jyväskylä (7.43% average yield), Oulu (5.42%), and Turku (5.16%), while Helsinki offers lower yields (4.14%) but potentially stronger capital appreciation prospects.

Trendy investment areas include Tapiola in Espoo, Hervanta in Tampere, and Lutakko in Jyväskylä, which combine good rental demand with infrastructure development and proximity to employment centers. These areas attract both local and international tenants, providing stable rental income streams.

infographics rental yields citiesFinland

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Finland versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the average property prices in major Finnish cities and regions, and how do they vary by type and location?

Property prices in Finland vary significantly between major urban centers and smaller cities, with Helsinki commanding premium prices across all property types.

City Apartments (€/m²) Houses (€/m²)
Helsinki 4,775-4,828 3,579-4,590
Espoo 3,789-4,053 2,836-4,437
Vantaa 2,856-3,000 2,878-3,000
Tampere 2,095-2,322 1,979-2,320
Turku 2,653-2,696 2,343-2,355
Oulu 2,277-2,394 1,588-1,600
Jyväskylä 2,456-2,575 1,942-1,979

The national average ranges from €1,767-2,400 per square meter for apartments and €1,500-2,000 for houses, making regional cities significantly more affordable than the capital region while still offering strong infrastructure and amenities.

What's the current rental yield and demand like in key Finnish cities, and how does tourism or local rental law affect the profitability for Americans?

As of mid-2025, Finnish rental yields average 5.32% nationally, with significant variation between cities reflecting local market dynamics and demand patterns.

Jyväskylä leads with 7.43% average yields driven by strong university student demand, followed by Oulu at 5.42% and Turku at 5.16%. Helsinki, despite higher property prices, delivers 4.14% yields supported by consistent professional and international tenant demand.

Tourism impacts vary by location, with Lapland and Helsinki benefiting from short-term rental opportunities, though new legislation effective from 2026 limits investment property short-term rentals to 90 days annually. This restriction affects Airbnb-style investments but doesn't apply to primary residences.

University cities maintain strong rental demand throughout the academic year, while tech centers like Oulu and Tampere benefit from stable employment-driven tenant pools. The combination of limited new construction and continued urbanization supports rental rate growth across major cities.

What are the most common mistakes Americans make when buying property in Finland, and how can they avoid them?

The most frequent error involves failing to obtain the required Ministry of Defence permit for land and house purchases, which can invalidate the transaction entirely.

Many Americans mistakenly believe property purchase grants residence rights, leading to complications when they attempt to relocate to Finland without proper immigration planning. Property ownership and residency operate under completely separate legal frameworks.

Underestimating total costs represents another significant pitfall, as buyers often focus solely on purchase price while overlooking transfer taxes, registration fees, ongoing maintenance costs, and potential major renovations required in older properties.

Inadequate due diligence on housing company finances can result in unexpected special assessments for building renovations or repairs. Buyers should review financial statements, planned maintenance schedules, and debt obligations before committing to apartment purchases.

Language barriers and unfamiliarity with Finnish legal procedures often lead to misunderstandings that professional assistance could prevent. Engaging qualified local representation early in the process helps avoid costly mistakes and ensures compliance with all regulatory requirements.

It's something we develop in our Finland property pack.

What are the future trends and forecasts for the Finnish property market that Americans should know before investing?

The Finnish property market is experiencing a recovery phase in 2025 following a period of price corrections, with economic growth forecast at 1.8% and inflation cooling to 1.5%.

Urban areas are expected to see moderate price appreciation driven by continued urbanization and limited new construction supply, while rural properties remain attractively priced for buyers seeking vacation homes or lifestyle changes. Investment focus is shifting toward residential properties, logistics facilities, and social infrastructure projects.

Rental market demand remains robust in major cities due to population growth and housing supply constraints, supporting rental rate increases across key metropolitan areas. The student housing sector particularly benefits from international student growth and limited purpose-built accommodations.

New short-term rental regulations taking effect in 2026 will limit Airbnb-style investments to 90 days annually for non-primary residences, potentially affecting investment strategies for Americans considering vacation rental income. However, traditional long-term rental markets remain unaffected and continue showing strong fundamentals.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

  1. InvestRopa - Finland US Citizen Property Ownership
  2. InvestRopa - Finland Real Estate for Foreigners
  3. Finnish Ministry of Defence - Real Estate Authorization
  4. Immigrant Invest - Finland Real Estate Guide
  5. Legistum - Buying Property in Finland
  6. Global Property Guide - Finland Rental Yields
  7. Global Property Guide - Finland Property Prices
  8. CBRE - Finland Market Outlook 2025