Can Americans buy property in Finland?

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

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

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INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Finland. If you'd like to learn more about us, you can check our presentation page.

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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

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Can Americans legally buy property in Finland?

Yes, Americans can legally buy property in Finland as of September 2025, but the process depends on the type of property you want to purchase.

For apartment shares in housing companies (the most common form of urban property ownership in Finland), Americans face no restrictions and can purchase directly without special permits. These housing company shares represent ownership of a specific apartment unit within a building.

However, Americans seeking to buy standalone houses or land must obtain special permission from Finland's Ministry of Defence before completing the purchase. This permit requirement applies to all non-EU/EEA citizens, including Americans.

The legal framework treats Americans the same as other non-European Union citizens, meaning you have the same rights and restrictions as buyers from other countries outside the EU/EEA zone.

Do foreigners need special permission to purchase real estate there?

Americans need special permission only for certain types of real estate purchases in Finland, specifically for standalone houses and land ownership.

The Ministry of Defence permit is required for any real estate purchase that involves owning the actual land beneath the property. This includes detached houses, vacation homes, and vacant land parcels.

The permit application costs €170 and typically takes 2-4 weeks to process. While most applications are approved as a procedural matter, the Ministry can deny permits for properties located near national borders, military installations, or other sensitive areas.

Apartment shares in housing companies do not require this permit because you're technically buying shares in a corporation that owns the building, rather than owning land directly. This distinction makes urban apartment purchases much simpler for Americans.

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

Are there restrictions on the type of property Americans can own?

Americans face different ownership rules depending on the property type they wish to purchase in Finland.

Property Type	Ownership Rights	Special Requirements
Apartment Shares	Full ownership rights	No permits needed
Detached Houses	Full ownership with permit	Ministry of Defence approval required
Vacation Homes/Cottages	Full ownership with permit	Ministry of Defence approval required
Commercial Land	Full ownership with permit	Ministry of Defence approval required
Agricultural Land	Restricted ownership	Additional agricultural permits may apply
Forest Land	Full ownership with permit	Ministry of Defence approval required
Condominiums	Full ownership rights	No permits needed (structured as shares)

Does buying property in Finland give an American residency or visa rights?

Buying property in Finland does not grant Americans any residency rights, visa privileges, or immigration benefits.

Finland does not operate an investor visa or golden visa program that would allow property purchases to lead to residence permits. Your property ownership is completely separate from your immigration status.

Americans who want to live in Finland must apply for residence permits through the standard immigration channels, such as work permits, student visas, or family reunification, regardless of their property ownership status.

You can own property in Finland while remaining a non-resident for tax purposes, though this affects your financing options and some administrative processes. Property ownership also doesn't accelerate any future citizenship applications.

What taxes or fees do Americans need to pay when buying property in Finland?

Americans face several mandatory taxes and fees when purchasing Finnish property, with costs varying significantly based on property type.

The transfer tax represents the largest upfront cost: 1.5% of the purchase price for apartment shares in housing companies, and 3% for houses and land. The buyer typically pays this tax within two months of the purchase.

Additional transaction costs include legal fees (typically €1,000-€3,000), property registration fees with the Land Registry (around €100-€200), and potential real estate agent commissions if you use a buyer's agent (typically 3-5% of purchase price).

The Ministry of Defence permit for houses and land costs €170, which is a fixed fee regardless of property value. You'll also need to budget for property inspection costs, translation fees for documents, and potential currency conversion fees if transferring funds from US bank accounts.

Are there annual property taxes for foreign owners in Finland?

Yes, Americans who own property in Finland must pay annual property taxes at the same rates as Finnish residents, with no additional foreign owner surcharges.

Finnish property tax rates range from 0.41% to 6% of the property's taxable value annually, depending on the municipality and property type. Residential properties typically face rates between 0.5% and 2%, while commercial properties may see higher rates.

The taxable value is determined by Finnish tax authorities and is usually lower than market value, often around 70-80% of actual market price. Helsinki properties typically face property tax rates around 0.7-1.0% for residential real estate.

Property taxes are collected by local municipalities and are due annually. As a foreign owner, you're responsible for ensuring timely payment, and late payments can result in penalties and interest charges.

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

Do Americans need a Finnish bank account or financing to complete the purchase?

While a Finnish bank account isn't legally required to buy property, it's highly practical and often necessary for ongoing property management.

You can complete a cash purchase using international wire transfers directly to the seller's account, but you'll need a Finnish bank account for paying utilities, property taxes, insurance, and maintenance fees after purchase.

Most major Finnish banks (Nordea, OP Financial Group, Danske Bank) offer accounts to non-residents, but require physical presence in Finland to open accounts and provide extensive documentation including proof of property ownership.

For financing, Americans face significant challenges obtaining mortgages from Finnish banks without Finnish residency or EU-based income. Most Finnish banks require borrowers to have permanent residence status and stable Finnish employment before approving home loans.

Cash purchases are therefore much more common among American buyers, representing approximately 80-90% of foreign property transactions in Finland as of September 2025.

Can Americans get a mortgage from a Finnish bank, and what are the requirements?

Americans can potentially obtain mortgages from Finnish banks, but the requirements are strict and approval rates are low for non-residents.

Requirement	Details	Impact on Approval
Residency Status	Finnish residence permit strongly preferred	Critical for approval chances
Income Source	Finnish or EU-based employment income	US income rarely accepted
Down Payment	Minimum 20-30% for non-residents	Higher than Finnish resident requirements
Credit History	Finnish credit history preferred	US credit scores not directly transferable
Debt-to-Income Ratio	Maximum 80% of monthly income	Stricter calculation for foreigners
Interest Rates	3-5% for non-residents (2025)	Higher than rates for Finnish residents
Processing Time	6-12 weeks for foreign applicants	Longer than domestic applications

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 typical costs of property in Finland compared to the U.S.?

Finnish property prices vary dramatically by location, with Helsinki commanding premium prices while rural areas offer significantly lower costs than comparable US markets.

Helsinki city center apartments average €5,000-€10,000 per square meter as of September 2025, making a typical 70-square-meter apartment cost €350,000-€700,000. This is comparable to mid-tier US cities like Austin or Denver, but significantly lower than New York or San Francisco.

Outside Helsinki, Finnish property prices drop substantially. Tampere and Turku apartments average €3,000-€5,000 per square meter, while smaller cities often see prices below €2,000 per square meter. Rural properties with land can cost as little as €50,000-€150,000 for entire houses.

Compared to US markets, Finland offers better value in secondary cities but higher costs in Helsinki relative to the local income levels. The key advantage is that Finnish properties often include features like saunas, high-quality construction, and energy-efficient systems that would be premium upgrades in US homes.

Are there legal steps Americans should take to protect their purchase?

Americans should take several essential legal steps to protect their Finnish property investment, starting with hiring qualified local legal representation.

A Finnish real estate lawyer should conduct comprehensive due diligence including title verification, lien searches, zoning compliance checks, and review of housing company financial statements for apartment purchases. Legal fees typically range from €1,000-€3,000 but are essential for protection.

Property registration with the Finnish Land Registry is mandatory and must be completed within six months of purchase. This creates official ownership records and legal protection for your investment.

Additional protective measures include obtaining comprehensive property insurance, setting up proper tax reporting structures for Finnish property tax compliance, and establishing clear documentation for any property management arrangements if you'll be an absentee owner.

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

Are there limits on renting out property if an American buys it as an investment?

Americans face no special restrictions on renting out Finnish property and enjoy the same rental rights as Finnish property owners.

1. **Standard rental regulations apply**: Finnish tenant protection laws, rent control measures in certain municipalities, and standard landlord obligations 2. **No foreign ownership rental caps**: Unlike some countries, Finland doesn't limit foreign owners' ability to operate rental properties 3. **Tax implications**: Rental income is subject to Finnish income tax, with rates ranging from 20% to 31.25% depending on total income 4. **Short-term rental regulations**: Cities like Helsinki have specific rules for Airbnb-style rentals, requiring permits for rentals under 30 days 5. **Property management options**: Many foreign owners use local property management companies, typically charging 8-15% of rental income

Helsinki's rental market offers particularly strong opportunities for investors, with average rental yields of 4-6% annually for well-located properties, though this varies significantly by neighborhood and property type.

What happens when an American decides to sell property in Finland?

Americans can sell their Finnish property without special restrictions, but face specific tax implications and procedural requirements.

Capital gains tax applies to any profit from the sale, calculated as the difference between your purchase price (plus improvements) and the sale price. For non-residents, the capital gains tax rate is typically 20% on profits, though this may be reduced under the US-Finland tax treaty.

If you obtained a Ministry of Defence permit for houses or land, that permit transfers with the property to the new owner if they're also a non-EU citizen. If your permit application had been denied historically, you would have been required to sell within six months.

The sale process requires similar legal representation as the purchase, with property registration updates needed at the Land Registry. Real estate agent fees for sellers typically range from 3-5% of the sale price, plus marketing and legal costs.

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. Finland US Citizen Property Ownership
2. Finland Real Estate for Foreigners
3. Multilaw Real Estate Guide Finland
4. Lawyers Finland Property Purchase Guide
5. Immigrant Invest Finland Guide
6. YLE Finnish Broadcasting Property Rules
7. Finnish Ministry of Defence Property Authorization
8. ESales International Finland Property Guide