Should I buy property in Finland or Sweden?

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

Who is the author of this content?

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.

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.

What's my main reason for wanting to buy property abroad right now?

Investment potential drives most property purchases abroad in 2025, with buyers seeking rental income and capital appreciation opportunities.

Nordic markets offer stable returns with lower volatility compared to Southern European destinations. Finland presents recovery potential after recent price corrections, while Sweden provides established rental markets with consistent demand.

Personal use considerations include lifestyle migration, retirement planning, and securing residence rights in EU countries. Both Finland and Sweden offer high quality of life, excellent infrastructure, and stable political environments that appeal to international property buyers.

Portfolio diversification motivates investors to explore Nordic real estate as a hedge against currency fluctuations and regional economic risks. The Euro-denominated Finnish market provides currency stability for Eurozone investors.

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

How much can I realistically afford, including taxes and fees, in each country?

Total acquisition costs in Finland range from 4-7% above the property purchase price, including transfer taxes, legal fees, and registration costs.

Finnish transfer taxes are 1.5% for apartments and 3% for houses, plus legal fees of €1,500-€3,000 and registration costs of approximately €500-€1,000. Additional costs include property surveys (€800-€1,500) and potential translation fees for documentation.

Swedish total costs typically range from 3-6% above purchase price. Transfer tax is 1.5% for individuals and 4.25% for companies, with legal fees averaging €2,000-€4,000 and registration fees of approximately €1,000-€2,000.

Currency exchange costs add 0.5-2% depending on your transfer method and timing. Budget an additional €5,000-€10,000 for immediate property preparations, insurance, and initial maintenance for properties in both countries.

Ongoing annual costs include property taxes, insurance, utilities, and maintenance, totaling 1.5-3% of property value annually in both markets.

What are the property prices like in Finland compared to Sweden?

Location	Finland (€/m²)	Sweden (€/m²)
Capital City Center	€5,300-€6,100 (Helsinki)	€7,700-€9,700 (Stockholm)
Capital Suburbs	€3,800-€4,500	€5,200-€6,800
Second-tier Cities	€2,800-€3,500 (Tampere, Turku)	€3,200-€4,200 (Gothenburg, Malmö)
National Average (Apartments)	€2,600-€4,950	€2,750-€4,700
New Construction	€4,200-€6,500	€4,500-€7,200
Houses (National Average)	€1,800-€3,200	€2,100-€3,800

How do mortgage options and interest rates differ between the two countries?

Finnish mortgage rates currently average 2.4% for variable rates and 2.0%+ for fixed terms, with new regulations allowing loan terms up to 35 years.

Finnish banks offer down payments as low as 5-15% for residents and EU citizens. Non-EU buyers typically need 20-30% down payments. Maximum loan-to-value ratios reach 95% for first-time buyers and 85% for investors.

Swedish mortgage rates average 2.8-3.1% as of September 2025, with most loans being variable or short-term fixed. Swedish banks generally require 15-30% down payments for foreign buyers, with stricter income verification requirements.

Both countries offer Euro-denominated mortgages for Finnish properties and Swedish Krona loans for Swedish properties. Currency risk considerations favor Finland for Eurozone investors seeking to avoid exchange rate fluctuations.

Loan approval processes take 4-8 weeks in both countries, with Finnish banks generally showing more flexibility for foreign buyers with established EU residence.

What are the property taxes and ongoing ownership costs in each place?

Finnish annual property taxes range from 0.41% to 1.0% of the property's assessed value, varying by municipality and property type.

Helsinki property taxes average 0.5-0.7% annually for apartments, while rural areas may charge up to 1.0%. Additional costs include housing company fees for apartments (€150-€400 monthly), building insurance (€300-€800 annually), and utilities (€100-€200 monthly).

Swedish property taxes are capped at approximately SEK 9,300 (€825) annually regardless of property value, making expensive properties particularly tax-efficient. Municipal taxes and utilities average €150-€300 monthly depending on property size and location.

Maintenance costs in both countries average 1-2% of property value annually. Swedish properties benefit from higher build quality standards, potentially reducing long-term maintenance expenses compared to older Finnish housing stock.

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

How stable are the economies and housing markets in Finland and Sweden?

Finland's economy is recovering from recent challenges, with GDP growth forecast at 1-2% annually through 2025-2026.

The Finnish property market experienced a correction in 2022-2023, with Helsinki prices declining 5-8% before stabilizing in early 2025. Current forecasts predict modest growth of 1.5% in 2025, driven by limited new construction and urban demand recovery.

Sweden demonstrates stronger economic fundamentals with GDP growth projections of 2-3% annually. The Swedish housing market shows robust recovery momentum, with non-Stockholm regions leading price growth at 3-5% annually in 2025.

Both economies benefit from stable banking systems, low unemployment rates (Finland 6.8%, Sweden 5.2%), and strong institutional frameworks. Sweden's larger economy and deeper capital markets provide greater resilience to external shocks.

Geopolitical risks affect Finland more directly due to its border with Russia, though NATO membership since 2023 has strengthened security guarantees. Sweden's geographic position and established neutrality provide additional stability factors.

What are the legal requirements for foreigners buying property in both countries?

EU and EEA citizens face no restrictions when buying property in either Finland or Sweden.

Non-EU citizens require Ministry of Defence authorization in Finland for land purchases and some apartment purchases, particularly in strategic border areas. The approval process takes 2-6 months and rarely results in rejection for standard residential purchases.

Sweden imposes virtually no restrictions on foreign property ownership, with rare limitations only applying to certain agricultural or forest land in remote areas. All buyers must comply with money laundering regulations and provide proof of funds.

Both countries require property registration through local authorities, with English-language documentation readily available. Legal representation is recommended but not mandatory, with costs averaging €2,000-€4,000 for standard transactions.

Property ownership rights are identical for foreign and domestic buyers once purchases are completed, including full inheritance and resale rights.

How do rental yields and investment potential compare between the two?

Finnish gross rental yields average 4.9% nationally, with Helsinki and surrounding areas offering 4-6% yields due to consistent rental demand.

University cities in Finland like Tampere and Turku provide higher yields of 5-7% with strong tenant pools from student and young professional populations. Limited new supply construction in 2024-2025 supports rental rate growth of 2-4% annually.

Swedish rental yields typically range from 3.5-5%, with Stockholm offering lower yields of 3-4% due to high purchase prices, while northern cities and university towns achieve 4-6% yields with better growth prospects.

Capital appreciation potential favors Sweden in the medium term, with established market cycles and stronger economic fundamentals supporting 3-5% annual price growth. Finland offers higher risk-adjusted returns due to current undervaluation following recent corrections.

Rental market regulations in both countries favor landlords with reasonable tenant protections, though Swedish markets offer deeper liquidity and more professional property management services.

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 lifestyle factors matter most to me, like climate, culture, or language?

Climate differences between Finland and Sweden are moderate, with Sweden's southern and western regions experiencing milder winters and more sunlight hours.

Helsinki averages -3°C in January and 17°C in July, while Stockholm averages 0°C in January and 20°C in July. Swedish coastal areas benefit from maritime influence, reducing temperature extremes compared to inland Finnish regions.

Language accessibility strongly favors Sweden, where English proficiency is widespread and Swedish shares Germanic roots with English. Finnish belongs to the Finno-Ugric language family, making it challenging for most foreign residents to learn, though urban Finns speak excellent English.

Cultural integration varies by location, with Stockholm and Gothenburg offering more international communities and services compared to Finnish cities outside Helsinki. Both countries maintain strong social safety nets, excellent healthcare systems, and high personal safety standards.

Outdoor lifestyle opportunities abound in both countries, with Finland offering more pristine wilderness access and Sweden providing better infrastructure for recreational activities and cultural events.

How easy would it be to manage or maintain a property in Finland versus Sweden?

Property management services are more developed and accessible in Sweden, particularly in major cities with established rental markets.

Swedish property management companies typically charge 8-12% of rental income, offering comprehensive services including tenant screening, rent collection, maintenance coordination, and legal compliance. Online platforms and English-language services are widely available.

Finnish property management is more fragmented outside Helsinki, with fewer professional management companies and more reliance on individual arrangements. Management fees average 6-10% of rental income, though service quality can vary significantly.

Maintenance costs and contractor availability favor Sweden due to larger market scale and competition. Finnish properties may require specialized knowledge of local building systems and regulations, particularly for older apartment buildings with unique heating and ventilation systems.

Remote management is feasible in both countries through digital banking, online tax filing, and professional services, though Swedish infrastructure provides better English-language support for international property owners.

What long-term risks or challenges could I face in each country?

Finland faces demographic challenges with an aging population and declining birth rates, potentially reducing long-term housing demand in smaller cities and rural areas.

Geopolitical risks include potential economic impacts from Russia tensions, though NATO membership provides security guarantees. Finnish dependence on export industries makes the economy vulnerable to global trade disruptions.

Sweden confronts housing affordability concerns in major cities, with potential government interventions in rental markets and property taxation that could affect investor returns. Immigration-driven population growth supports housing demand but also strains infrastructure.

Climate change risks affect both countries through increased weather variability, though Nordic building standards provide good resilience. Energy transition costs may impact property operating expenses as countries phase out fossil fuel heating systems.

Currency risks primarily affect Finnish Euro exposure versus Swedish Krona volatility, with SEK showing higher historical volatility against major international currencies.

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

Which option best aligns with my financial goals and personal priorities?

Choose Finland if you prioritize lower entry costs, higher potential yields, and Euro currency stability with moderate risk tolerance.

Finnish properties offer better value propositions in recovery markets, with Helsinki and surrounding areas providing stable rental income at 4-6% yields. Limited new supply supports future price appreciation once economic conditions normalize.

Select Sweden for established market depth, superior liquidity, and stronger economic fundamentals with lower volatility tolerance. Swedish properties provide easier management, better international services, and more predictable market cycles.

Investment timeline considerations favor Finland for 5-10 year horizons to capture recovery benefits, while Sweden suits shorter-term strategies with immediate rental income requirements and exit flexibility.

Personal use preferences strongly influence the decision, with Sweden offering better lifestyle integration for English speakers and Finland providing authentic Nordic experiences with lower living costs outside major cities.

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 Price Forecasts - INVESTROPA
2. Purchase a Property in Finland - Lawyers Finland
3. Foreigners Buy Land Sweden - INVESTROPA
4. Property Investment Guide - Veles Club
5. Property Investment Comparison - Numbeo
6. Sweden Price Forecasts - INVESTROPA
7. Buying House Sweden - INVESTROPA
8. Finland Long Term Interest Rate - CEIC Data
9. Sweden Mortgage Rate - Trading Economics
10. Rental Yields Guide - Global Property Guide