Buying property in Finland as a foreigner: full guide

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 (Finland, Sweden, Portugal, etc.).

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.

Can foreigners actually buy property in Finland without major restrictions?

EU and EEA citizens can buy property in Finland exactly like Finnish citizens—no special permits or restrictions apply.

Non-EU/EEA citizens face different rules depending on the property type. They need a permit from the Ministry of Defence to buy real estate (land and houses), but can freely purchase apartment shares in housing companies, which is how most apartments in Finland are owned.

The permit costs €170 and is property-specific, meaning you need a new permit for each real estate purchase. If your application is denied, you must sell the property within six months.

Dual nationals holding at least one EU/EEA nationality are exempt from permit requirements, treating them as EU citizens for property purchases.

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

Do you need Finnish residency or a special visa to purchase real estate?

You don't need to be a Finnish resident or hold any specific visa to buy property in Finland.

The permit requirement for non-EU/EEA citizens is based solely on nationality, not residence status. A tourist from Japan needs a permit, while a non-resident EU citizen faces no restrictions.

However, residency status significantly impacts mortgage availability. Finnish banks typically require valid residence permits and proof of stable income from non-resident borrowers, making cash purchases more common among foreign buyers without Finnish ties.

Can you complete a Finnish property purchase without traveling to Finland?

Yes, you can buy property in Finland remotely through the country's digital property transaction service.

The National Land Survey offers online property transactions where buyers and sellers can sign and finalize deals digitally, provided both parties are registered in the Finnish Population Information System.

For those not registered in the system, you'll need either a notary to witness the transaction in person or an authorized representative with power of attorney to act on your behalf.

Many foreign buyers successfully complete purchases through video conferences with their representatives handling the physical documentation in Finland.

What documents and steps are essential for buying Finnish property?

The property purchase process in Finland follows a structured sequence with specific documentation requirements.

Is hiring a lawyer or notary mandatory for Finnish property transactions?

A notary or public purchase witness is legally required for real estate transactions but not for housing company share transfers.

While lawyers aren't mandatory, foreign buyers typically benefit from legal representation to navigate Finnish property law, review contracts in Finnish or Swedish, and ensure proper due diligence.

Real estate agents can assist with documentation and negotiations but cannot provide legal advice. They typically charge 3-5% commission, usually paid by the seller.

The notary primarily witnesses signatures and verifies identities rather than providing legal counsel, making independent legal advice valuable for protecting your interests.

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

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What are the total costs when buying and selling property in Finland?

Transfer tax represents the largest upfront cost at 4% for real estate or 1.5% for housing company shares.

Additional purchase costs include title registration fees (€170-€300), notary fees (€200-€500), and potential legal fees (€1,000-€3,000 depending on complexity).

Annual property tax varies by municipality and property type, typically ranging from 0.93% to 2.00% of the taxable value. For apartments, monthly maintenance fees to the housing company can range from €200 to €800, significantly impacting investment returns.

When selling, capital gains tax applies at 30% for gains up to €30,000 and 34% above that threshold. Real estate agent fees for selling typically range from 3-5% of the sale price.

Utilities, insurance, and potential renovation reserves add to ongoing ownership costs, with older properties often requiring substantial maintenance investments.

Can foreigners secure mortgages from Finnish banks and what are the terms?

Foreign buyers can obtain mortgages from Finnish banks, but face stricter requirements than residents.

Most Finnish banks require valid residence permits, proof of stable income, and Finnish bank accounts from foreign borrowers. Non-residents often need larger down payments of 30-40% compared to the standard 15-20% for residents.

Interest rates in June 2025 typically range from 2-3% for variable rate loans, which dominate the Finnish mortgage market. Fixed-rate options exist but are less common and often more expensive.

Loan-to-value ratios reach up to 70-80% for qualified residents but drop to 50-60% for non-residents without established Finnish credit history.

To improve mortgage approval chances, foreign buyers should establish Finnish bank relationships early, provide comprehensive financial documentation translated into Finnish or English, and consider having a Finnish spouse or partner as co-borrower.

What costly mistakes do foreigners commonly make when buying Finnish property?

The most expensive mistake non-EU/EEA buyers make is purchasing real estate without obtaining the required permit, leading to forced sale within six months.

Many foreign investors underestimate housing company maintenance fees, which can reach €500-€800 monthly for older buildings in Helsinki, severely impacting rental yields and resale values.

Insufficient due diligence on planned renovations proves costly—Finnish housing companies can levy special assessments of €10,000-€50,000 per apartment for major repairs like plumbing replacements or facade renovations.

Foreign buyers often overestimate rental demand in smaller cities with declining populations, leading to extended vacancy periods and poor returns on investment properties.

Currency risk for non-euro buyers remains overlooked until exchange rate fluctuations turn profitable investments into losses.

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.

How do property prices compare across Helsinki, Tampere, Turku and smaller regions?

Property prices in Finland show significant regional variation, with Helsinki commanding premium prices while smaller towns offer affordability.

Which Finnish cities offer the best opportunities for living versus investment returns?

Helsinki provides the best long-term capital growth potential but offers lower rental yields of 3-4% due to high entry prices.

University cities like Rovaniemi, Kuopio, Oulu, Turku, and Jyväskylä deliver the highest rental yields of 5-7% thanks to steady student demand and lower purchase prices.

For quality of life, Espoo ranks highest for families with excellent schools and green spaces, while Tampere attracts young professionals with its vibrant tech scene and cultural offerings.

Turku combines moderate prices with coastal charm and good rental demand, making it suitable for both living and investment.

Smaller northern cities offer bargain prices but face population decline risks, making them suitable only for buyers seeking remote retreats rather than investment returns.

Where do most foreigners choose to live in Finland and what attracts them?

The Helsinki metropolitan area (Helsinki, Espoo, Vantaa) attracts 60% of foreign residents due to international job opportunities and established expat communities.

1. Helsinki - International businesses, embassies, and Finland's most diverse cultural scene
2. Espoo - Tech companies like Nokia, international schools, and family-friendly suburbs
3. Tampere - Growing tech hub with lower living costs than Helsinki
4. Turku - Historic atmosphere, university presence, and Baltic Sea access
5. Oulu - Northern tech center with strong university and lower property prices
6. Vantaa - Airport proximity and affordable housing near Helsinki
7. Jyväskylä - Central location, university town atmosphere, reasonable prices

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

What tax obligations face non-resident property owners in Finland?

Non-resident property owners pay 30% tax on rental income up to €30,000 and 34% on amounts exceeding this threshold in 2025.

Deductible expenses include property maintenance, management fees, mortgage interest, and depreciation, potentially reducing taxable rental income significantly.

Annual property tax varies by municipality, typically ranging from 0.93% to 2.00% of the property's taxable value, with bills arriving each August.

Capital gains tax applies at the same 30-34% rates when selling, calculated on the profit after deducting purchase price, improvement costs, and selling expenses.

Finland maintains double taxation treaties with over 70 countries, allowing foreign owners to claim credits for Finnish taxes paid against their home country obligations, though specific provisions vary by treaty.

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. Finnish Ministry of Defence - Authorization for Non-EU/EEA Buyers
2. Global Property Guide - Finland Buying Guide
3. InfoFinland - Buying a Home
4. National Land Survey of Finland - Acquiring Real Property
5. Finnish Tax Administration - Transfer Tax
6. Global Property Guide - Finland Price History
7. Finnish Tax Administration - Tax Residency
8. Statistics Finland - Housing Prices
9. Nordea Bank - Home Purchase Guide
10. Investropa - Finland Real Estate for Foreigners