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Everything you need to know before buying real estate is included in our Finland Property Pack
UK citizens can legally purchase property in Finland, but the process involves specific requirements and restrictions that changed significantly after Brexit.
Post-Brexit regulations now classify UK buyers as non-EU citizens, requiring Ministry of Defence permits for certain property types, particularly land and houses. However, apartment purchases through housing company shares remain more straightforward and don't require special permits.
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.
UK citizens can buy property in Finland but face different rules for apartments versus land/houses since Brexit.
Apartments don't require permits, while land and house purchases need Ministry of Defence approval costing around €170.
| Property Type | Permit Required | Key Restrictions |
|---|---|---|
| Apartments (Housing Company Shares) | No | Standard purchase process, 2% transfer tax |
| Houses with Land | Yes - Ministry of Defence | €170 permit fee, 4% transfer tax |
| Land Only | Yes - Ministry of Defence | Government pre-emption rights in some areas |
| Rural/Border Properties | Yes - Ministry of Defence | Additional scrutiny, potential restrictions |
| Åland Region Properties | Special Restrictions | Foreigners generally cannot buy |
| Commercial Real Estate | Yes - Ministry of Defence | Business permit may also be required |
| City Center Apartments | No | Easiest option for UK buyers |
Can UK citizens legally purchase property in Finland?
UK citizens can legally buy property in Finland as of September 2025, but the rules changed significantly after Brexit.
Before Brexit, UK citizens enjoyed the same property rights as other EU citizens. Since leaving the EU, UK buyers are now classified as non-EU/EEA citizens, which means they face additional requirements for certain property types.
The Finnish government allows foreign ownership but implements a permit system for non-EU buyers purchasing land or houses. This system aims to control foreign ownership of sensitive areas while maintaining openness to international investment.
It's something we develop in our Finland property pack.
Do UK citizens need to be residents in Finland to purchase property?
No, UK citizens do not need to be residents in Finland to purchase property.
Non-resident buyers can acquire both apartments and houses, though the process differs depending on the property type. Residency status primarily affects mortgage eligibility rather than the legal ability to buy.
Finnish banks typically prefer lending to residents or those with established income in Finland or the EU. Non-residents often face higher down payment requirements and stricter income verification processes.
Many non-resident UK buyers choose to purchase properties with cash to avoid the complexities of obtaining Finnish mortgages. The legal ownership rights remain the same regardless of residency status once the purchase is complete.
What are the restrictions on property types UK citizens can buy?
UK citizens face different restrictions depending on the specific property type they wish to purchase in Finland.
| Restriction Level | Property Types | Requirements |
|---|---|---|
| No Restrictions | Apartments (Housing Company Shares) | Standard purchase process only |
| Permit Required | Houses with private land | Ministry of Defence permit (€170) |
| Permit Required | Vacant land plots | Ministry of Defence permit + potential pre-emption |
| Permit Required | Rural properties | Ministry of Defence permit + additional scrutiny |
| Special Restrictions | Åland region properties | Generally prohibited for non-residents |
| Enhanced Scrutiny | Border zone properties | Government pre-emption rights may apply |
| Commercial Restrictions | Business properties | May require business permits alongside property permits |
Is there a difference between buying in cities versus rural or border areas?
Yes, significant differences exist between purchasing property in Finnish cities compared to rural or border areas.
City purchases, particularly apartments, follow a more straightforward process since most urban residential properties are structured as housing company shares. These don't require Ministry of Defence permits and have lower transfer taxes at 2%.
Rural and border area purchases face additional scrutiny due to national security considerations. The Finnish government maintains pre-emption rights in sensitive border zones, meaning they can intervene in sales to non-EU citizens if deemed necessary.
Properties near military installations, airports, or critical infrastructure may face enhanced restrictions. The permit application process for rural properties typically takes longer and requires more detailed justification for the purchase.
Border municipalities often have specific local regulations that complement national requirements, potentially adding extra steps to the acquisition process.
What is the step-by-step process for UK citizens purchasing property in Finland?
The property purchase process for UK citizens varies depending on whether you're buying an apartment or a house with land.
- Property search and selection - Work with local real estate agents to identify suitable properties within your budget and preferred areas
- Initial offer and preliminary agreement - Submit an offer and sign a preliminary purchase agreement, typically requiring a 5-10% deposit
- Ministry of Defence permit application - If buying land/houses, submit permit application with €170 fee and required documentation
- Legal due diligence - Hire a Finnish lawyer to review contracts, property records, and ensure clear title
- Financing arrangement - Secure mortgage (if needed) or arrange cash payment, including currency exchange considerations
- Final contract signing - Execute the final purchase contract once all permits and conditions are satisfied
- Transfer tax payment - Pay 2% for apartments or 4% for land/houses to Finnish tax authorities
- Property registration - Register ownership with the Finnish Land Survey, officially completing the transfer
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Do UK citizens need special permits before buying Finnish property?
UK citizens need special permits only when purchasing land or houses, but not for apartments structured as housing company shares.
The Ministry of Defence permit costs approximately €170 and is mandatory for all non-EU citizens buying real estate (kiinteistö) rather than shares. This permit is property-specific, meaning each purchase requires a separate application.
The permit application requires detailed information about the buyer's identity, financial capacity, and intended use of the property. Processing typically takes 4-6 weeks, though complex cases may take longer.
Apartment purchases don't require permits because they involve buying shares in housing companies rather than direct real estate ownership. This makes apartments the most accessible option for UK buyers seeking Finnish property.
It's something we develop in our Finland property pack.
What taxes and fees apply to UK citizens buying Finnish property?
UK citizens face several taxes and fees when purchasing property in Finland, with amounts varying by property type.
| Fee/Tax Type | Apartments | Houses/Land |
|---|---|---|
| Transfer Tax | 2% of purchase price | 4% of purchase price |
| Ministry Permit Fee | Not required | €170 |
| Legal Fees | €1,500-3,000 | €2,000-4,000 |
| Real Estate Agent | Typically paid by seller | Typically paid by seller |
| Property Inspection | €500-800 | €800-1,500 |
| Registration Fees | €85-170 | €85-170 |
| Mortgage Arrangement | 1-2% of loan amount | 1-2% of loan amount |
How does Brexit specifically affect UK citizens buying Finnish property?
Brexit fundamentally changed the property buying landscape for UK citizens in Finland by removing their EU citizen privileges.
Before Brexit, UK citizens could purchase any type of Finnish property without permits or special restrictions. They enjoyed the same rights as Finnish nationals when it came to real estate ownership.
Post-Brexit changes include mandatory Ministry of Defence permits for land and house purchases, higher transfer taxes on certain property types, and more complex mortgage approval processes. UK citizens now face the same restrictions as other non-EU buyers.
The transition period ended on December 31, 2020, meaning all UK property purchases since January 1, 2021, follow the new non-EU buyer regulations. Existing UK property owners retain their ownership rights but face new rules for additional purchases.
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.
Can UK citizens obtain mortgages from Finnish banks?
UK citizens can potentially obtain mortgages from Finnish banks, but the process is significantly more challenging for non-residents.
Finnish banks typically require borrowers to demonstrate stable income within Finland or the EU, making it difficult for UK-based applicants. Banks prefer applicants with Finnish employment contracts, local bank accounts, and established credit history in Finland.
Non-resident UK buyers often face higher down payment requirements of 30-50% compared to 10-20% for residents. Interest rates may also be higher, and loan terms shorter for non-resident borrowers.
Many UK buyers choose to finance their purchases through UK-based international mortgage brokers or pay cash to avoid the complexities of Finnish banking requirements. Some consider establishing Finnish residency first to improve mortgage prospects.
Banks also require extensive documentation including income verification, tax returns, and property valuations, with the entire process taking 6-12 weeks for approval.
Are there limits on land ownership versus apartments for UK citizens?
UK citizens face different ownership limitations depending on whether they purchase land or apartments in Finland.
For apartments structured as housing company shares, there are no ownership limits for UK citizens. They can purchase multiple apartments without restriction and enjoy full ownership rights including the ability to rent or sell freely.
Land ownership faces more scrutiny through the Ministry of Defence permit system. While there's no explicit limit on the amount of land UK citizens can own, each purchase requires individual permit approval.
The Finnish government maintains pre-emption rights on land purchases in sensitive areas, particularly near borders or military installations. This means the state can intervene in sales if deemed necessary for national security.
Åland, Finland's autonomous region, maintains the strictest restrictions where non-residents, including UK citizens, generally cannot purchase real estate regardless of type.
It's something we develop in our Finland property pack.
What ongoing costs should UK citizens expect after purchasing Finnish property?
UK property owners in Finland face several recurring costs that vary significantly between apartments and houses.
- Annual property tax ranging from 0.41% to 6% of property value depending on municipality and property type
- Housing company maintenance fees for apartments, typically €2-8 per square meter monthly
- Home insurance costing €300-800 annually depending on property value and coverage
- Utility costs including heating, electricity, and water, averaging €100-200 monthly for apartments
- Waste management fees ranging from €150-300 annually depending on location
- Renovation reserves for apartments, typically 0.5-1% of property value annually
- Property management fees if using rental management services, typically 8-12% of rental income
- Income tax on rental income at progressive rates if the property generates rental income
Does owning property in Finland provide UK citizens with residency rights?
Property ownership in Finland does not automatically grant residency rights or visa privileges to UK citizens.
Finnish immigration law clearly separates property ownership from residency status. UK citizens must apply for residence permits through standard immigration channels, regardless of their property investments.
Available residence permit categories include work-based permits, family reunification, student visas, or entrepreneur permits for those starting businesses. Property ownership may support certain applications but doesn't guarantee approval.
Some UK citizens use property ownership as part of entrepreneur visa applications if they plan to operate rental businesses or tourism-related ventures. However, this requires meeting specific business plan and investment threshold requirements.
EU citizenship through other means remains the most straightforward path to unlimited property rights and residency in Finland for UK citizens.
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.
UK citizens can successfully purchase property in Finland, but the Brexit changes require careful navigation of new permit requirements and tax obligations.
Apartment purchases remain the most straightforward option, while land and house acquisitions require Ministry of Defence permits and additional scrutiny, particularly in rural or border areas.
Sources
- Finland Real Estate for Foreigners - INVESTROPA
- Purchase Property in Finland - Lawyers Finland
- Can Foreigners Buy Property in Finland - ArabMLS
- Ministry of Defence Authorization - Finland
- Limitations to Foreigners - ELRA
- Property Purchase Guide - Veles Club
- Buying Property in Finland - Expat Finland
- Buying Apartment in Finland - ExpatLaVita