HomeHousing in FinlandTax 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 page 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:

See Finnish Tax Administration:
Transfer tax > Buying your first home for details of procedures, duties, conditions and restrictions.

Tax Deduction / Credit for Housing Loan Interest

Source: Finnish Tax Administration

If you have a home loan and pay interest on it, you are normally entitled to partial or full deductions. However, the rules on deductibility are different depending on how the dwelling is used.

If you take a loan in order to buy a summer house or other leisure property, the interest expenses for it are non-deductible. In tax assessment, this loan is treated as consumer borrowing, or "other loan".

Deductions on an owner-occupied home loan or a major improvement of such home
Your interest payments entitle you to partial deductions if you have borrowed money to buy a permanent home, or to pay for a major improvement. It does not matter whether the home is a single-family house or an apartment in a housing company.
In 2022 the deductible part of home-loan interest payments is 5%  *from 2023 onwards, home-loan interest will no longer be deductible.

The Finnish Tax Administration's Deduction for home loan interest page includes home loan interest information:

Capital Gains on Property - Tax Exemption

In 2022 the capital income tax rate is 30% for income up to ‚ā¨30,000 and 34% 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

You can get an interest deduction if you borrow money for financing an improvement on your permanent home. This is a similar process as the deduction for home-loan interest payments.
For 2022, the deductible part of interest payments is 5%
See Finnish Tax Administration:
Deduction for home loan interest
Tax credit for household expenses

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