Home > Housing in Finland > Tax Advantages for Buying Property in Finland

Tax Advantages of Purchasing Property in Finland

Primary sources of information for this page: Finnish Tax Administration - Verohallinto & Finnish Ministry of Finance - Valtiovarainministeriö
This is a brief guide only, and does not constitute legal advice

First-time Homebuyers' Exemption From Transfer Tax

The purchase of a first home for permanent use as a residence is exempt from transfer tax under certain conditions. In brief these are:

Search "First-time homebuyers' exemption from transfer tax" at www.tax.fi for details of procedures, duties, conditions and restrictions.

Tax Deduction / Credit for Housing Loan Interest

Source: Finnish Tax Administration
If you intend to pursue these tax advantages, please search "Tax credit on interest payments" at www.tax.fi for latest information.

Interest payments on home loans yield benefits to taxpayers in the form of a tax credit. Different tax rules apply depending on the purpose for which the property was purchased.

The Tax Credit on Interest Payments page is broken down into:

Capital Gains on Property - Tax Exemption

In 2015 the capital income tax rate is 30% for income up to ‚ā¨30,000 and 33% for capital income exceeding that amount. However, the gain from the sale of a taxpayer’s home (i.e. the 'profit'; the difference between the purchase and sale price) is exempt from capital gains tax if the taxpayer has owned and lived in the home for a continuous period of at least two years.

Tax Credit for Renovations & Repairs

Summary: In 2015, 45% of the cost of services of tradesmen employed for "Home improvement / home repair" can be claimed as a tax credit, to an annual limit of 2,400 euros. The cost of the work must have exceeded 100 euros, and could not be performed by the taxpayer himself or by a person living in the same household. The deduction excludes repair and installation of domestic appliances.
This deduction is also available for repair and improvement of a second residence (ex. summer residence).
Source: Finnish Tax Administration
Please search "Tax credit for domestic costs, work performed by Company" at www.tax.fi for complete, latest information.

Related Links