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
Yes, US citizens can legally buy residential property in Finland in 2026, and while most apartment purchases are straightforward, buying land or a detached house requires an extra permit step for non-EU buyers.
Finland offers a stable and transparent real estate market with clear rules, making it an attractive destination for American buyers looking to invest or relocate to one of the world's happiest countries.
We constantly update this blog post to reflect the latest regulations, tax rates, and market conditions in Finland.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Finland.
Can a US citizen legally buy residential property in Finland right now?
Can I buy a home in Finland as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in Finland, with apartments being the most accessible option since they typically involve buying shares in a housing company rather than land itself.
The standard buying process for a US citizen in Finland starts with finding a property, making an offer, signing a preliminary agreement with a deposit, and then completing the sale either through a real estate agent or directly with the seller. For most apartment purchases in cities like Helsinki, Tampere, or Turku, the process works similarly to buying in the United States, but when the purchase involves land (such as a detached house with its plot), non-EU buyers like Americans must apply for a permit from the Finnish Ministry of Defence before the transaction can close. This permit requirement exists because Finland monitors foreign land ownership for national security reasons, though approvals are typically granted for ordinary residential purchases.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Finland.
Are there many Americans buying property and living in Finland in 2026?
As of early 2026, Americans represent a small fraction of foreign property buyers in Finland, with estimates suggesting they account for well under 1% of residential transactions nationwide.
American expats in Finland tend to concentrate in Helsinki's international neighborhoods like Kallio, Töölö, and Kamppi, as well as in tech-friendly cities like Espoo (home to Aalto University) and Tampere, where startup ecosystems and English-speaking workplaces make integration easier. The top three reasons Americans choose to buy property and relocate to Finland include the exceptional quality of life and safety, the world-class education system for families with children, and the strong work-life balance that Finnish culture prioritizes. The American expat community in Finland is slowly growing, driven primarily by tech professionals, academics, and people seeking a quieter lifestyle in one of the world's happiest and safest countries.
Do foreigners have the same buying rights as locals in Finland?
As of early 2026, foreigners and locals have nearly identical buying rights for apartments in Finland, but non-EU/non-EEA citizens (including Americans) face an additional permit step when purchasing real estate that includes land.
For apartments sold as housing company shares (the most common ownership structure in Finnish cities), there are no restrictions for foreign buyers, and Americans can purchase on exactly the same terms as Finnish citizens. However, land-based properties like detached houses, holiday homes, or plots located near borders or in certain strategic areas may require Ministry of Defence approval for non-EU buyers, and properties within military buffer zones or on certain islands may be off-limits entirely.
We cover all these things in length in our pack about the property market in Finland.
Can I buy property in Finland without a residence permit?
As of early 2026, Finland does not require foreign buyers to hold a residence permit in order to purchase property, meaning Americans can buy homes while still living in the United States.
The process for buying property in Finland while living abroad involves working with a Finnish real estate agent, opening a Finnish bank account (which typically requires a Finnish personal identity code), and either traveling to Finland for the closing or arranging power of attorney for someone to act on your behalf. Buying a home in Finland does not automatically grant any visa or residency rights, and you should be skeptical of anyone suggesting otherwise, as property ownership and immigration status are completely separate matters in Finnish law. The main practical challenge non-resident buyers face is the banking setup, since Finnish banks design their full services for Nordic residents, which means getting a mortgage or even a simple bank account can involve extra paperwork and longer processing times.
Can US citizens own land in Finland?
As of early 2026, US citizens can own land outright in Finland, but they must typically obtain permission from the Finnish Ministry of Defence before completing the purchase of real estate that includes land.
Finland primarily uses freehold ownership for land-based properties, meaning buyers own both the building and the land beneath it permanently, though some municipal areas offer leasehold arrangements where you own the building but lease the land from the city on long-term contracts (often 50 to 100 years). The permit requirement for non-EU buyers generally applies across Finland, but properties near military installations, along certain border zones with Russia, and on some strategically located islands may face stricter review or outright restrictions.
Please note that we have a dedicated blog article about the land buying process in Finland here.
What documents will I need to buy in Finland?
As of early 2026, the essential documents a US citizen needs to purchase property in Finland include a valid passport, proof of funds (bank statements or investment account records), and often a Finnish personal identity code if you want smooth banking and tax filing.
A Finnish personal identity code is not legally mandatory to buy property, but it is practically essential because banks and tax authorities use it as the key identifier for nearly all financial transactions. A Finnish bank account is strongly recommended (and often effectively required) because transfer tax payments, utility connections, and housing company fees all flow more smoothly through local banking. Proof of funds documentation typically includes recent bank statements showing liquid assets, and while a local address is helpful for correspondence, it is not a formal legal requirement for the purchase itself.
We have a whole section dedicated to all the documents you need in our Finland property pack.
Can a foreign-owned company buy property in Finland?
As of early 2026, foreign-owned companies can legally purchase residential property in Finland, but if the company is domiciled outside the EU/EEA and the purchase involves land, the same Ministry of Defence permit requirement applies as for individual buyers.
Some Americans do use company structures (similar to LLCs) to hold Finnish property, typically for liability protection or estate planning purposes rather than for immediate tax benefits. Owning property through a company does not automatically lower taxes in Finland, and in some cases it can increase the tax burden because rental income may face both corporate taxation and additional reporting requirements. The main drawback of company ownership is the added complexity and cost: you will need Finnish corporate accounting, annual filings, and potentially face scrutiny under both US and Finnish tax rules if you are the beneficial owner.
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What taxes and fees will I pay in Finland in 2026?
What are buyer taxes in Finland in 2026?
As of early 2026, the total buyer tax in Finland depends on property type: you pay 1.5% transfer tax on housing company shares (typical apartments) or 3% transfer tax on real estate (land-based homes), meaning a 200,000 euro apartment costs 3,000 euros in transfer tax (about 3,300 USD or 2,570 GBP), while a 300,000 euro house with land costs 9,000 euros (about 9,900 USD or 7,700 GBP).
The transfer tax is the only significant buyer-side tax in Finland, as there is no stamp duty or separate purchase tax, making the system simpler than many other European countries. Transfer tax rates do not differ between foreigners and locals, nor between primary residences and investment properties, so Americans pay exactly the same rates as Finnish citizens on all purchases.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Finland.
What are other closing costs in Finland in 2026?
As of early 2026, total closing costs (excluding transfer tax) typically range from 1% to 2% of the purchase price, so for a 250,000 euro property you should budget roughly 2,500 to 5,000 euros (about 2,750 to 5,500 USD or 2,150 to 4,300 GBP) for additional fees.
The main closing cost categories include: title registration fee of 172 euros (about 190 USD) for real estate purchases filed with the National Land Survey; optional trade confirmer fee of roughly 100 to 200 euros for land-based transactions; legal review fees if you hire a lawyer (typically 500 to 1,500 euros); and potential real estate agent fees, though in Finland the seller usually pays agent commissions. Agent fees and extensive legal review are often negotiable or optional, especially for straightforward apartment purchases where the housing company documents are already standardized. The single closing cost that most surprises foreign buyers is the housing company's outstanding loan share, which can add tens of thousands of euros to your effective purchase price if the building has financed renovations through shared debt.
Are there hidden fees foreigners miss in Finland right now?
As of early 2026, commonly overlooked fees for foreign buyers in Finland can total 5,000 to 20,000 euros (about 5,500 to 22,000 USD or 4,300 to 17,200 GBP) depending on the property, primarily from housing company debt and renovation reserves.
The top three hidden fees foreign buyers most often fail to budget for are: the housing company loan share (a portion of the building's shared debt that becomes your responsibility, often 10,000 to 50,000 euros for older buildings with recent renovations); banking setup and document translation costs (typically 500 to 1,500 euros if you need certified translations and multiple international transfers); and the upcoming renovation fund contributions that housing companies often require but do not clearly disclose until after purchase. Ongoing annual costs that foreign property owners frequently underestimate include property tax (ranging from 500 to 2,000 euros annually depending on municipality and property value), housing company maintenance charges (200 to 500 euros monthly for apartments), and potential special assessments when the building undertakes major repairs.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Finland.
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 I get a mortgage as a US citizen in Finland in 2026?
Do banks lend to US citizens in Finland in 2026?
As of early 2026, Finnish banks do lend to US citizens, but getting approved is materially easier if you already live in Finland with a residence permit and have a Finnish personal identity code.
US citizens generally receive similar treatment to other non-EU foreigners when applying for mortgages in Finland, meaning the key differentiator is residency status and income verifiability rather than nationality. The main reason some Finnish banks hesitate to lend to American borrowers specifically is the extra compliance burden created by FATCA (Foreign Account Tax Compliance Act), which requires foreign banks to report US account holders to the IRS, adding administrative costs and complexity. For non-resident US citizens applying from abroad, approval rates are significantly lower, with many applications rejected or offered only with very high down payment requirements of 40% or more.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Finland.
What down payment do American people need in Finland in 2026?
As of early 2026, the regulatory minimum down payment in Finland is 5% for first-time buyers and 10% for others, but US citizens typically need 15% to 20% if resident in Finland, or 30% to 40% if buying as a non-resident, so for a 250,000 euro property a non-resident American should budget 75,000 to 100,000 euros (about 82,500 to 110,000 USD or 64,400 to 85,900 GBP) as a realistic down payment.
The typical down payment range for foreign buyers in Finland runs from the regulatory minimum of 5% to 10% at the low end (rarely achieved by non-residents) up to 40% or more for those without Finnish income or credit history. Yes, a larger down payment significantly improves mortgage terms for US citizens in Finland, as banks view higher equity as lower risk and will typically offer better interest rates and longer loan terms to borrowers who can put 30% or more down.
You can also read our latest update about mortgage and interest rates in Finland.
What interest rates do US citizens get in Finland in 2026?
As of early 2026, mortgage interest rates in Finland for well-qualified borrowers sit around 3% to 4% for residents with strong profiles, while US citizens (especially non-residents) typically face rates in the 4% to 6% range due to perceived higher risk.
Interest rates for foreign buyers in Finland are generally 0.5 to 2 percentage points higher than rates offered to local residents with established Finnish credit histories and stable employment. Variable-rate mortgages tied to Euribor (usually 12-month Euribor plus a margin) are by far the most common in Finland, with fixed-rate options being rare and typically available only for short periods of 3 to 5 years. The single factor with the biggest impact on the interest rate a US citizen will be offered is their residency status and income documentation, since banks price risk based on how easily they can verify and collect from borrowers, and non-residents with foreign income face the highest margins.
Can I use US income to qualify in Finland right now?
As of early 2026, Finnish banks will sometimes accept US-sourced income for mortgage qualification, but it is the harder path and typically requires more documentation and higher down payments to compensate for verification challenges.
Banks in Finland typically require American applicants to provide at least two years of US tax returns, recent pay stubs or employment contracts, bank statements showing regular salary deposits, and often a letter from the employer confirming continued employment. If standard US documentation is insufficient, some banks may accept alternative verification such as CPA-prepared income summaries, audited financial statements for self-employed applicants, or substantial asset documentation showing you could service the loan from savings even without ongoing income.
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How do US taxes interact with owning property in Finland?
Do I have to declare the property to the IRS from Finland?
As of early 2026, simply owning a Finnish property does not trigger a specific IRS reporting requirement by itself, but the income and accounts connected to that property (rental income, capital gains, and Finnish bank accounts) absolutely do have US tax implications.
If you earn rental income from your Finnish property, you must report it on your US tax return using Schedule E, and if you sell the property at a gain, you report that on Schedule D. Simply owning the property without generating income or selling it does not require a special IRS form, but the moment you rent it out, sell it, or hold significant funds in Finnish accounts, your reporting obligations activate.
Will I pay tax twice in the US and Finland in 2026?
As of early 2026, the goal of the US-Finland tax treaty is to prevent double taxation on the same income, but you may still owe taxes in both countries with relief mechanisms reducing the total burden rather than eliminating it entirely.
Yes, there is a comprehensive tax treaty between the United States and Finland, and the official treaty documents are available through the IRS, providing protections for property owners including rules on how rental income and capital gains are taxed. The Foreign Tax Credit (claimed via IRS Form 1116) allows you to offset taxes paid to Finland against your US tax liability, so if you pay Finnish income tax on rental earnings, you can typically credit that amount against what you would otherwise owe the IRS on the same income. Whether Finnish property taxes are deductible on your US federal return depends on your personal tax situation and current US limits on state and local tax deductions, making this a question best answered by a US CPA familiar with your complete financial picture.
Do I need FATCA reporting when buying in Finland?
As of early 2026, buying a Finnish property does not directly trigger FATCA reporting, but the Finnish bank accounts and financial assets you open to facilitate the purchase often do require reporting once they exceed certain thresholds.
For FATCA purposes (Form 8938), reporting kicks in when your specified foreign financial assets exceed 50,000 USD at year-end (or 75,000 USD at any point during the year) for single filers living in the US, with higher thresholds for those living abroad. FATCA reporting via Form 8938 differs from FBAR (FinCEN Report 114) in that FATCA covers a broader range of financial assets and is filed with your tax return, while FBAR is a separate filing due April 15 that focuses specifically on foreign bank accounts exceeding 10,000 USD in aggregate. Yes, consulting a US CPA before buying property in Finland is strongly recommended if you plan to rent the property, hold significant balances in Finnish accounts, buy through a company structure, or expect to sell within a few years, and you should specifically ask about FBAR thresholds, FATCA filing requirements, foreign tax credit optimization, and depreciation recapture on eventual sale.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Finland. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Finland, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Finnish Ministry of Defence | Official government body responsible for foreign real estate permit decisions. | We used it to explain when non-EU buyers need permission for land purchases. We also clarified that permits target real estate, not typical apartment share purchases. |
| Finnish Financial Supervisory Authority (FIN-FSA) | Official regulator setting binding mortgage lending limits for Finnish banks. | We used it to establish the maximum loan-to-value ratios (95% first home, 90% others). We then adjusted typical foreigner down payments based on practical bank constraints. |
| Finnish Tax Administration | Official tax authority that sets and administers all buyer taxes and filing rules. | We used it to describe transfer tax rates of 1.5% for shares and 3% for real estate. We used it as the baseline for all buyer tax explanations in this article. |
| National Land Survey of Finland | Official registry authority publishing 2026 fees for title registration. | We used it to give concrete early-2026 closing cost figures like the 172 euro registration fee. We avoided vague "small fee" language by citing actual numbers. |
| Digital and Population Data Services Agency (DVV) | Government agency managing personal identity codes and trade confirmer requirements. | We used it to explain why a Finnish personal identity code unlocks banking and tax services. We also clarified the trade confirmer step for real estate transactions. |
| Nordea Bank | Major Nordic bank with clear public statements on foreign customer eligibility. | We used it to support the reality that banking and mortgages are easier for Nordic residents. We justified stricter non-resident mortgage assumptions based on their policies. |
| OP Bank | Major Finnish bank explaining home buying steps in plain language. | We used it to explain why a Finnish personal identity code is often required for bank services. We shaped the "documents you'll need" section based on their guidance. |
| IRS (Finland Tax Treaty) | Official US tax authority providing treaty texts and related documents. | We used it to confirm the Finland-US tax treaty exists and is publicly accessible. We kept the US tax section factual by referencing official IRS sources. |
| FinCEN | Official US bureau running FBAR filing rules for foreign account reporting. | We used it to explain when foreign accounts trigger FBAR requirements. We provided a clean, non-blog source for US compliance basics. |
| Bank of Finland | Central bank publishing official interest rate statistics for the Finnish market. | We used it to track current Euribor rates and mortgage rate trends. We grounded our interest rate estimates in official central bank data. |
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