Tax Advantages of Purchasing Property in Finland
- First-time Homebuyers' Exemption From Transfer Tax
- Tax Deduction / Credit for Housing Loan Interest
- Capital Gains on Property - Tax Exemption
- Tax Credit for Renovations & Household Expenses
- Related Links
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:
- The transferee must purchase at least a 50 percent holding in the house or apartment
- The transferee must be at least 18 but less than 40 years of age at the time the transfer deed is signed
- The transferee must use the property as a permanent place of residence, and start living in the newly acquired home within 6 months of signing the contract
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 may be entitled to partial or full deductions. However, the rules on deductibility are different depending on how the dwelling is used.
From 2023 onwards, home-loan interest on purchase of an owner-occupied home, and interest on loans taken for major repairs, are no longer deductible. However, all home-loan interest on purchase of an investment property for rental is deductible.
If you take a loan in order to buy a summer house or other leisure property, the interest expenses for it are non-deductible - this loan is treated as consumer borrowing.
The Finnish Tax Administration's Deduction for home loan interest page includes home loan interest information:
- Loans taken to finance a permanent, owner-occupied home, or to finance a capital improvement of such a home including Part-ownership, Right-of-occupancy, Capital improvement, Government-subsidised loan (Arava)
- Loans taken to finance a purchase as a first-time homebuyer
- Loans taken to finance a purchase of real property as an investment
- Loans taken to finance other purchases of residential property including summer cottages, gifts, part-time rentals
- Tax credit for the deficit in capital income
Capital Gains on Property - Tax Exemption
In 2023 the capital income tax rate is 30% for income up to €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.
See Finnish Tax Administration:
Selling your residential property
Tax Credit for Renovations, Repairs & Household Expenses
From 2023 you can no longer claim an interest deduction if you borrow money for financing an improvement on your permanent home. However, costs for tradesmen performing renovations and repairs are tax-deductible - these are considered 'household expenses'. You can also claim the credit if you pay for work done in your home or your holiday home such as cleaning, child care, or computer installation.
See Finnish Tax Administration:
Tax credit for household expenses
The costs of renovations in let properties can be deducted from rental income. Deductions depend on whether the renovation involves annual repairs or modernisation.
Deductible renovation costs
Related Links
Links to other sites are direct to the relevant page, where possible
Tap the Share button

Tap Add to Home Screen
Name the shortcut, tap Add
Tap the Menu button

Tap Add to Home Screen
Name the shortcut, tap Submit