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In Finland, the ownership of an apartment is commonly arranged through a housing company. In such a case you own shares in the housing company which give you the right of occupancy of a specific apartment in a residential building.

 

Mortages and Loans

Banks and financial institutions accept housing company shares as collateral for mortgages.

The housing company usually takes on debt to finance maintenance and renovation work. The shareholder is liable for any debt attributable to his/her shares. Because of this, two different prices are shown for an apartment for sale: the sales price including the share of debt (FI: velaton hinta), and the the sales price excluding the share of debt (FI: myyntihinta).

 

Rules and Regulations

The housing company may in its Articles of Association stipulate rules that are binding for all shareholders. Typically, these include the collecting of a monthly managing charge that is used for running and maintaining the property and the building(s).

The housing company keeps a record of its shareholders. As of 2019 the list of shareholders and the physical shares are being transferred into the Residential and Commercial Property Information System maintained by the National Land Survey of Finland.

 

Transfer Tax

The buyer pays a transfer tax of 1,5% of the price of the apartment including the share of debt. When buying an apartment through a real estate agent it is the agent's responsibility to file a tax return of the sales transaction with the Tax Administration.

The other common way of ownership is through a real estate property. This means that you own a physical piece of land and any buildings upon it. Typical properties include detached houses, summer cottages, and plots of land. Some semidetached houses also are organized in the form of a real estate property.

Mortgages and Loans

Banks and financial institutions accept properties as collateral for mortgages.

However, unlike a housing company, the real estate property cannot take on any debt of its own. Any need for external financing for e.g. renovations must be arranged through a personal mortgage or a loan.

As the property cannot take on any debt of its own the sales price never includes any debt.

 

Rules and Regulations

An important document is the certificate of encumbrances which lists e.g. possible claims or liabilities against the real estate property.

Buying, selling and owning a piece of property is regulated through the Code of Real Estate and follows more formal procedures than the sale of an apartment.  Ownership of all real estate properties is registered by the National Land Survey of Finland.

Please note that non-EEA or non-EU buyers need a permit to buy a real estate property in Finland.

 

Transfer Tax

The buyer pays a transfer tax of 3% of the sales price of the real estate property. It is the responsibility of the buyer to file a tax return of the sales transaction with the Tax Administration.

Renting a home in Finland involves several important considerations. There are, however, very few differences between renting an apartment and a piece of property. Here are some key points to keep in mind.

 

The Lease Agreement

Ensure you have a written lease agreement that outlines the terms and conditions, including rent amount, payment terms, and duration of the lease. This is always the case when renting a home through a real estate agent. Contracts are often fixed-term for one year, automatically converting to open-ended thereafter.

Unless specified otherwise, an apartment is leased unfurnished but with a kitchen and ordinary appliances in place, such as a stove and a refrigerator.

When renting an apartment in the capacity of a private person the tenant does not pay any fees to the real estate agent. However, a security deposit, usually equivalent to one or two months' rent, is required.

Payments

Rent is typically paid monthly, usually on the 2nd workday of the month. Tenants may need to pay for utilities (electricity and water) and internet in addition to the rent. Usually the tenant him/herself has to arrange for separate electricity and internet contracts. 

Other optional services, such as parking or sauna, are usually paid monthly. If the apartment building has a laundry room it is usually paid per use.

Tenant Responsibilities

Tenants must maintain the apartment in good condition and report any damages immediately. If the apartment includes a private yard, maintenance of it (e.g. raking leaves and pushing snow) is the responsibility of the tenant. The apartment must be cleaned thoroughly at the end of the lease.

While not legally mandatory, home insurance is highly recommended and often required by landlords. It covers property damage, theft, and liability for accidents.

Legal Rights

Tenants have the right to privacy. Landlords can only enter the apartment with permission, except in emergencies. Discrimination based on race, nationality, religion, or other personal characteristics is illegal in Finland.

We've compiled a list of links with information that might come in handy. Our real estate agents are more than happy to help you with any questions that might arise!

 

The Ministry of Defense

A permit to non-EU and non-EEA buyers to buy real estate >

 

The Tax Administration

Buyers from outside Finland – how to file and pay Finnish transfer tax >

Buyer of a flat (housing company) – complete the return and pay the transfer tax >

Buyer of real estate – remember the transfer tax and registrations of title >

 

National Land Survey of Finland

Welcome to the Property Transaction Service >

Residential and Commercial Property Information System as a databank for housing companies and owner apartments >