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
Buying property in Finland as a foreigner involves navigating specific legal requirements, understanding unique ownership structures, and managing various financial risks that can significantly impact your investment.
Non-EU citizens need permits from the Ministry of Defence for land purchases, while apartment ownership through housing companies offers more flexibility but comes with ongoing maintenance fees and market volatility risks, particularly outside major urban centers like Helsinki, Tampere, and Turku.
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.
Finland's property market offers stability in major cities but presents unique challenges for foreign buyers, including permit requirements for non-EU citizens and complex ownership structures.
Investment risks vary significantly between urban centers and rural areas, with ongoing costs and market liquidity being key considerations for potential property owners.
| Risk Category | Urban Areas (Helsinki, Tampere, Turku) | Rural/Secondary Areas |
|---|---|---|
| Legal Requirements | Apartment shares: No permit needed Land/houses: EU citizens exempt, non-EU need permits |
Same requirements but limited property options |
| Market Liquidity | High liquidity, faster resale (3-6 months) | Low liquidity, can take 12+ months to sell |
| Price Volatility | Stable with modest growth (2-4% annually) | High risk of stagnation or decline |
| Rental Demand | Strong rental market, 6-8% yields possible | Limited rental demand, yields below 4% |
| Ongoing Costs | Maintenance fees €100-200/month | Higher maintenance costs €150-300/month |
| Financing Access | Better mortgage options available | Limited financing, often cash-only |
| Investment Risk Level | Low to Moderate | Moderate to High |
What legal requirements must foreigners meet when buying property in Finland?
EU and EEA citizens can purchase any type of property in Finland without restrictions or permits as of September 2025.
Non-EU and non-EEA citizens must obtain a permit from the Finnish Ministry of Defence before purchasing land or houses (direct real estate ownership). This permit process typically takes 2-4 weeks and requires proof of funds, identity documentation, and a clear explanation of the purchase purpose.
Apartments structured as shares in housing companies (asunto-osakeyhtiö) can be purchased by anyone regardless of nationality without permits. This ownership model covers approximately 80% of Finnish apartment stock and is the most accessible option for foreign buyers.
Properties near sensitive border areas, on Åland Islands, or deemed critical for national security may face additional restrictions even for EU citizens. The Ministry of Defence maintains final approval authority for these special cases.
It's something we develop in our Finland property pack.
Are there restrictions on the types of property foreigners can purchase?
Foreign buyers can purchase most property types in Finland, including residential apartments, houses, commercial properties, and vacation homes.
The main restriction applies to direct land ownership for non-EU citizens, who need Ministry of Defence permits for any property that includes land rights. Apartment shares in housing companies bypass this restriction since you own shares rather than land directly.
Åland Islands have special autonomous status with stricter ownership rules requiring regional permits and often local residency. Properties in military zones or near critical infrastructure face additional security screening regardless of buyer nationality.
Agricultural and forestry properties may have specific requirements related to land use and management obligations. Commercial properties in certain sectors like telecommunications or energy may require industry-specific approvals.
What taxes and fees apply when purchasing property in Finland?
| Tax/Fee Type | Rate | Applied To |
|---|---|---|
| Transfer Tax - Apartments | 1.5% | Housing company shares |
| Transfer Tax - Houses/Land | 3-4% | Direct real estate ownership |
| Annual Property Tax | 0.32-1.35% | Property value (higher for plots) |
| Real Estate Agent Fees | 4-6% | Property purchase price |
| Legal/Notary Fees | €1,000-3,000 | Fixed fees for documentation |
| Registration Fees | €100-500 | Land Registry recording |
| Capital Gains Tax (non-residents) | 30-34% | Profit on property resale |
How does Finnish property ownership law differ from other countries?
Finland uses a unique housing company share system (asunto-osakeyhtiö) for apartment ownership, where you buy shares in a company that owns the building rather than owning the apartment directly.
This shareholding system grants exclusive occupancy rights to your apartment and voting rights in building management decisions. Unlike freehold ownership in many countries, you cannot modify structural elements without company approval, and maintenance decisions are collective.
All property ownership must be registered in Finland's national Land Registry for full legal protection. This system provides excellent title security compared to countries with less centralized recording systems.
Finland does not offer citizenship or residency through real estate investment, unlike many other European countries. Property ownership alone provides no immigration benefits or pathway to permanent residence.
Inheritance laws follow forced heirship rules, meaning you cannot freely dispose of all property through will - spouses and children have statutory inheritance rights that cannot be completely disinherited.
What are the risks of property price fluctuations in Finland?
Helsinki metropolitan area property prices have grown steadily at 3-5% annually over the past decade, showing strong resilience during economic downturns.
Secondary cities like Tampere, Turku, and Oulu demonstrate moderate price stability with 1-3% annual growth, while university towns maintain demand through student housing needs. Rural and remote areas face significant price decline risks due to population migration to urban centers.
Northern Finland and smaller municipalities have experienced 10-20% property value declines over the past five years as young populations move to Helsinki region for employment opportunities. Climate change impacts, particularly in Arctic regions, may further affect long-term property values.
Economic recession risks remain moderate given Finland's stable economy, but dependency on exports and technology sectors creates vulnerability to global downturns that could impact property demand and pricing.
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How stable is the Finnish housing market overall?
The Finnish housing market ranks among Europe's most stable, with Helsinki region showing consistent demand growth and limited supply constraints driving steady price appreciation.
Finland's housing market weathered the 2008 financial crisis better than most European countries, with Helsinki prices declining only 5-8% before recovering within three years. The market structure remains fundamentally sound with conservative lending practices and low household debt ratios.
Population centralization continues supporting urban market stability, with 70% of population growth concentrated in five major urban areas. This demographic trend creates sustained demand pressure in desirable locations while challenging rural market viability.
Interest rate sensitivity remains moderate due to predominantly fixed-rate mortgages and conservative loan-to-value ratios typically below 80%. Banking regulations require substantial down payments, reducing speculative investment and market volatility.
It's something we develop in our Finland property pack.
What should foreigners know about mortgage financing in Finland?
Finnish banks offer mortgages to foreigners, but non-EU citizens and non-residents face stricter requirements including higher down payments (typically 30-40% versus 15-20% for residents).
Establishing Finnish banking relationships significantly improves mortgage access and terms. Major banks like Nordea, OP Bank, and Danske Bank require proof of Finnish income, employment contracts, or substantial assets within Finland for favorable lending terms.
Interest rates for foreign buyers typically run 0.5-1.5% higher than rates offered to Finnish residents, with current rates ranging from 4-6% for qualified foreign borrowers as of September 2025. Documentation requirements include credit history from home country, proof of income, and residence permits where applicable.
Cash purchases remain common among foreign buyers who cannot access competitive financing terms. This approach eliminates mortgage complexity but requires substantial liquid capital and careful due diligence on property values and market conditions.
What hidden costs and ongoing expenses should buyers expect?
Monthly housing company maintenance fees represent the largest ongoing cost, averaging €100-200 per month for apartments and covering building maintenance, insurance, and reserve funds.
Utility costs including electricity, heating, water, and waste management typically run €130-200 monthly for average apartments, with heating costs significantly higher during Finland's long winter season. Internet and cable services add another €30-50 monthly.
Property insurance is mandatory and costs €200-500 annually depending on property value and coverage. Home contents insurance adds another €150-300 yearly. Some housing companies may impose special assessments for major renovations or building improvements, potentially costing thousands of euros.
Professional property management services charge 5-8% of rental income if you plan to rent the property. Annual property tax bills arrive separately from maintenance fees and vary by municipality, typically ranging €500-2,000 annually for average properties.
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 easy is it to rent out property in Finland if not living there?
Helsinki and other major university cities offer strong rental markets with consistent tenant demand, particularly for well-located apartments near public transportation and city centers.
Rental yields in Helsinki range from 4-7% annually, with higher yields possible in student-heavy areas and smaller apartments that appeal to young professionals. Tampere and Turku offer similar rental demand with slightly higher yields due to lower purchase prices.
Finnish tenant protection laws are extensive, making eviction difficult and costly even for legitimate reasons like non-payment of rent. Rental income for non-residents faces 30-34% tax rates, significantly impacting net returns compared to resident investors who benefit from lower tax brackets.
Professional property management becomes essential for non-resident landlords, adding 5-8% of rental income to costs but handling tenant relationships, maintenance issues, and legal compliance requirements. Rural properties face limited rental demand and much longer vacancy periods.
What location-based risks should buyers consider?
Population migration from rural areas to Helsinki region creates long-term value decline risks for properties outside major urban centers, with some rural municipalities losing 2-3% of population annually.
Northern Finland faces particular challenges from economic restructuring away from traditional industries like forestry and mining, leading to employment decline and out-migration that pressures property values downward.
Climate change impacts including increased flooding, extreme weather events, and changing temperature patterns may affect property desirability and insurance costs, particularly in coastal and low-lying areas.
Economic dependency on specific industries creates location-specific risks - for example, Nokia region properties were severely impacted by the company's decline, while areas dependent on paper mills face ongoing challenges from industry consolidation.
It's something we develop in our Finland property pack.
How difficult is property resale in Finland for foreign investors?
Helsinki region properties typically sell within 3-6 months due to active buyer demand and good market liquidity, while secondary cities may require 6-12 months for successful sales.
Rural and remote properties face significant resale challenges, often taking 12-24 months to sell and potentially requiring substantial price reductions to attract buyers. Limited buyer pools in these areas create seller's market disadvantages.
Foreign sellers may face additional complexity including capital gains tax obligations (30-34% for non-residents), currency exchange risks if original purchase was financed in foreign currency, and distance-related challenges in managing the sales process.
Market timing becomes crucial given Finland's seasonal patterns - spring and summer months show highest buyer activity, while winter sales can take significantly longer and achieve lower prices due to reduced viewing activity and moving preferences.
What legal and administrative pitfalls commonly affect foreign buyers?
Failing to obtain required Ministry of Defence permits for non-EU buyers purchasing land or houses can result in forced property sale or transaction nullification, creating significant financial losses.
Inadequate due diligence on housing company financial health represents a major risk - buildings with deferred maintenance, upcoming major repairs, or financial problems can impose unexpected costs of tens of thousands of euros through special assessments.
Registration failures at the Land Registry can leave buyers without full legal protection, particularly important for inheritance planning and future resale. All transactions must be properly registered within specified timeframes to ensure legal validity.
Tax compliance errors including misunderstanding resident versus non-resident tax obligations, failing to report rental income properly, or miscalculating capital gains tax can result in penalties and interest charges that significantly impact investment returns.
Language barriers in legal documentation and housing company communications can lead to misunderstood obligations or missed important decisions affecting property value and 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.
Understanding these risks helps foreign buyers make informed decisions about Finnish property investment while avoiding costly mistakes that could impact long-term returns.
Success in the Finnish property market requires careful location selection, thorough legal compliance, and realistic expectations about ongoing costs and market conditions.
Sources
- ESales International - Buying Property in Finland as a Foreigner
- InvestRopa - Finland Real Estate for Foreigners
- Veles Club - Finland Property Investment Guide
- ELRA - Limitations to Foreigners in Finland
- Expat Finland - Buying Property Guide
- Multilaw - Real Estate Guide Finland
- Lawyers Finland - Property Purchase Guide
- Finnish Tax Administration - Real Estate Tax