Guide to Property Taxes in Finland

Nonresidents are generally subject to Finnish taxation on specified income from Finnish sources, including rental income and gains derived from real estate situated in Finland.

Finnish individual income is divided into two principal categories: earned income and capital income. Rental income and capital gains from investment property generally fall within the capital-income category.

Income Tax on Capital Income for 2026

Capital (investment) income is taxed at rates of 30% and 34% (the latter percentage is applicable when the annual taxable capital income exceeds EUR 30,000).

Rental Income Tax

Rental income earned by a nonresident from property situated in Finland is generally taxable in Finland as capital income at 30% or 34%.

Tax is imposed on net rental income, meaning that qualifying expenses incurred in earning the rental income can generally be deducted before tax is calculated.

Deductible expenses can include housing-company maintenance charges, property management and letting expenses, insurance, repairs and maintenance, and other qualifying costs associated with generating rental income. Interest on debt incurred to acquire an income-producing rental property may also generally be deductible under the applicable rules.

For the purposes of the rental-income examples in this guide, deductible expenses are assumed to equal 30% of gross rental income; this is an illustrative assumption only, as Finland does not provide a standard 30% deduction and actual qualifying expenses are generally deducted based on the costs incurred.

Corporate Tax

Corporate income and capital gains are taxed at a flat rate of 20%. Income-generating expenses and other business-related expenses are deductible from gross income.

Capital Gains Tax

A nonresident individual is generally subject to Finnish tax on gains arising from the disposal of Finnish real estate. Taxable gains are treated as capital income and are therefore generally taxed at 30% up to €30,000 of total taxable capital income and 34% on the portion exceeding €30,000.

The taxable gain can generally be calculated by deducting the property's actual acquisition cost and qualifying acquisition and disposal expenses from the selling price.

Alternatively, the taxpayer can use a deemed acquisition cost instead of actual acquisition costs and expenses. The deemed acquisition cost is:

• 20% of the selling price where the property has been owned for less than 10 years.
• 40% of the selling price where the property has been owned for at least 10 years.

The taxpayer can generally use whichever permitted calculation produces the more favorable result. If the deemed acquisition cost is used, actual acquisition and selling expenses cannot additionally be deducted.

A small-disposal exemption can apply where the total selling prices of assets disposed of during the tax year do not exceed €1,000, subject to the statutory conditions. This should not be described as an exemption simply because the capital gain itself is €1,000 or less.

A separate exemption may also apply to the sale of an individual's qualifying permanent home where the ownership and occupancy requirements are satisfied.

Corporate Tax

For 2026, Finnish companies are generally subject to corporate income tax at 20% of taxable profit. Rental income and taxable capital gains are generally included in corporate taxable income, while qualifying business expenses are deductible.

The Finnish Government has proposed reducing the corporate income tax rate from 20% to 18% from 2027. However, for the 2026 tax year the applicable standard corporate income tax rate remains 20%.

Buying and Selling Costs/Taxes

Property Holding Tax

Finland imposes an annual Real Estate Tax (kiinteistövero / fastighetsskatt) on real estate situated in Finland. The tax is generally payable by the person who owns the property at the beginning of the calendar year.

The tax is based on the property's taxable value, which is determined separately for the land and buildings for real estate tax purposes. The taxable value does not necessarily correspond to the property's purchase price or current market value.

Municipalities determine their own annual real estate tax rates within statutory limits. For 2026, the principal rate ranges are:

• Land: 1.30%–2.00%
• Buildings used as permanent residences: 0.41%–1.00%
• Other residential buildings, including leisure properties: 0.93%–2.00%
• Buildings subject to the general building rate: 0.93%–2.00%
• Unbuilt building sites: generally 2.00%–6.00%

For a residential investment property, the applicable rate depends on the actual use and classification of the building, while the land on which the property stands is generally taxed separately at the municipality's applicable land rate.

The taxable value of a building is generally derived from its replacement value, taking into account factors such as the building's characteristics and age depreciation. The taxable value can therefore differ substantially from the property's market value.

Real estate tax is collected by the Finnish Tax Administration, with the revenue accruing to the municipality in which the property is situated.