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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 includes:

Capital Gains on Property - Tax Exemption

In 2017 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 2016, the deductible part of interest payments wass 55%.
This deduction is also available for repair and improvement of a second residence (ex. summer residence).
Source: Finnish Tax Administration
Please see www.tax.fi - Tax credit on home loan interest and
PDFs at www.tax.fi - Tax credit for domestic costs for complete, latest information.

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