Buying Property in Finland as a Foreigner

Buying a home in Finland is more open to foreigners than many newcomers expect — but it works differently from most countries. The biggest surprise is that when you buy a city apartment, you are not buying the apartment at all: you are buying shares in a company. Understanding that one fact, plus the costs and permits involved, saves a lot of confusion. This guide walks through how property ownership works, who needs permission to buy, what it costs, and what to check before you sign.

Two Very Different Things You Can Buy

In Finland there are two legally distinct ways to "own a home", and they follow separate rules.

The first is housing company shares (asunto-osakeyhtiön osakkeet). Most apartments and terraced houses in Finnish towns and cities belong to a asunto-osakeyhtiö — a limited-liability housing company. The company owns the building; you buy shares in that company, and those shares give you the right to live in a specific apartment. When people say they "bought a flat in Helsinki", they almost always mean they bought shares in a housing company.

The second is real estate (kiinteistö) — owning the land itself, typically a detached house (omakotitalo) on its own plot, a holiday home, or a bare plot. Here you become the registered owner of the property and the land beneath it.

This distinction drives almost everything that follows: whether you need a permit, how much transfer tax you pay, how ownership is recorded, and what your ongoing obligations are. Get clear on which type you are buying before anything else.

Can Foreigners Buy at All?

Yes — and for the most common purchase, an apartment, there are essentially no restrictions on nationality.

According to InfoFinland, you do not need any permit to buy housing company shares, regardless of where you are from. EU and EEA citizens can also buy real estate on the same terms as Finnish citizens.

The one real restriction applies to non-EU/EEA citizens buying real estate that includes land. Under Finland's Act on permit requirements for certain real estate acquisitions, a private individual who is not a national of an EU or EEA state must apply to the Finnish Ministry of Defence for authorisation before buying a real estate unit — for example, a detached house on its own plot, or a plot of land. The Ministry's site is explicit that the permit is required only for real estate, not for housing company shares or rental arrangements.

A useful exception: people with dual nationality do not need the permit if one of their nationalities is from an EU or EEA country, according to the Ministry of Defence.

As of 2026, the Ministry states the processing fee is €210 per property identifier when paid online through the electronic service at the time of application, or €280 per property identifier if you ask for an invoice. Always check the Ministry of Defence page for the current fee and application route before you commit, because separate national-security rules can also block transactions near sensitive sites.

Owning a Home Is Not a Residence Permit

It is worth saying plainly: buying property in Finland does not give you the right to live in Finland. There is no "buy-a-home, get-a-visa" route here. Residence rights come through the immigration system — a residence permit from Migri for non-EU citizens, or registering your right of residence for EU citizens — entirely separately from any property purchase.

In practical terms, though, you will need to be set up as a resident to buy comfortably. To open a Finnish bank account, take out a mortgage, and complete the paperwork, you will generally need a Finnish personal identity code (henkilötunnus) and a local bank account first. So while owning property and living in Finland are legally separate, most people sort out registration before they buy.

What It Actually Costs

The headline price is never the whole cost. Budget for these on top.

Transfer tax (varainsiirtovero). This is the main extra cost and it is paid by the buyer. According to Vero, the Finnish Tax Administration:

• Housing company shares: 1.5% of the debt-free price
• Real estate (land/house): 3% of the purchase price

For a housing share, the "debt-free price" is the key concept: it is the cash sale price plus the share of the housing company's loan that is attached to your apartment. Vero's own example shows a flat bought for €60,000 with a €20,000 company-loan share giving a debt-free price of €80,000, taxed at 1.5% = €1,200. You must file the transfer tax return and pay within two months of signing the deed. If a real estate agent handles the sale of shares, the tax is typically paid at signing.

One change worth knowing if you have read older guides: the first-home buyer exemption from transfer tax was abolished from the start of 2024, at the same time the rates were cut to today's 1.5% / 3% levels. First-time buyers now pay transfer tax like everyone else. Confirm the current position on the Vero transfer tax pages.

Other costs to budget for include the real estate agent's role (usually paid by the seller, but confirm), any legal advice you take, a condition survey for a house, registration of title for real estate, and — for non-EU buyers of land — the Ministry of Defence permit fee. Ongoing, an apartment carries a monthly maintenance charge (see below).

Getting a Mortgage in Finland

Finnish banks — Nordea, OP, Danske Bank, S-Pankki and others — do lend to foreign residents, but the terms depend heavily on your situation.

The rules of the game are set partly by the loan cap (lainakatto) from Finanssivalvonta, the Financial Supervisory Authority. As of 2026, the maximum loan against the collateral value is 95% for a first home and 90% for any other home. In plain terms: a first-home buyer needs at least 5% of their own money, and a second-home or investment buyer at least 10%. Banks often lend more conservatively than the cap allows, so expect to be asked for more savings in practice.

Banks weigh your income stability and the length of your residence permit heavily. Holders of temporary permits — work, study or family permits — can and do get mortgages, but a permit with comfortably more than a year left makes a bank far more willing to lend. A solid Finnish employment history helps a great deal.

Mortgage terms are commonly in the 20–25 year range. There is also a state-backed safety net: the government guarantee for housing loans, administered by the State Treasury (Valtiokonttori). According to the State Treasury, the guarantee can cover up to 20% of the loan (25% for interest-subsidised ASP first-home loans), to a maximum of €60,000, and the guaranteed loan period runs up to 25 years (extendable to 27 on request). The ASP (asuntosäästöpalkkio) scheme rewards systematic first-home saving — worth asking your bank about if you are young and planning ahead. Check current figures with Valtiokonttori and your bank.

If you are moving money into Finland for a deposit from an account abroad, a multi-currency service such as Wise can move funds at the mid-market rate and avoid the wide exchange margins traditional banks often apply on international transfers — useful when a deposit is large enough that the FX spread matters.

The Hidden Costs of a Housing Company Apartment

Buying shares in an asunto-osakeyhtiö comes with obligations that catch newcomers off guard. You are not just buying four walls — you are buying into a company's finances, and you become co-responsible for them.

Every month you pay a maintenance charge (hoitovastike) that covers the building's running costs: caretaking, heating of common areas, water, insurance, administration. On top of that there may be a capital charge (rahoitusvastike or pääomavastike) if the company has taken out loans — for example to fund a renovation. Your apartment may also carry a share of the company's debt (velkaosuus); this is the portion of company loans attached to your shares, and remember it counts toward the debt-free price for transfer tax.

The single biggest financial risk is an upcoming major renovation. Finnish apartment buildings periodically need a pipe renovation (putkiremontti) — replacing plumbing and often electrical systems — which can run to tens of thousands of euros per apartment, billed either as a lump sum or as a higher capital charge for years. InfoFinland specifically advises finding out whether any renovations are planned and what they will cost before you buy. Always ask for, and read, the housing company's financial statement and the manager's certificate (isännöitsijäntodistus), which set out the charges, the debt, and the renovation plan.

How the Purchase Actually Works

The process differs between the two types of property.

Buying housing company shares is the simpler path. You agree the deal, sign a deed of sale (kauppakirja), pay the price (and take over any company-loan share), and your ownership of the shares is recorded in the company's shareholder register. A real estate agent often drafts the contract. No public purchase witness is required for shares.

Buying real estate (a house or plot) is more formal. The buyer and seller must draw up a written deed of sale containing the property details, the parties, the price and the intention to sell. Crucially, under Finnish law the deed must be witnessed by a public purchase witness (kaupanvahvistaja) — an authorised attesting official — with both parties present at the same time, unless the sale is done through the electronic Property Transaction Service of the National Land Survey (Maanmittauslaitos). If a real-estate conveyance is not properly witnessed, it is not valid. After buying, you apply for registration of title (lainhuuto) with the National Land Survey, normally within six months.

A condition survey (kuntotarkastus) is not mandatory, but the Finnish Competition and Consumer Authority recommends commissioning one for a detached house if the seller has not — it flags risks and likely future repairs, even if it cannot reveal every hidden defect.

Should You Buy or Keep Renting?

Buying makes most sense if you are reasonably settled in Finland, have stable income, and plan to stay several years — long enough to absorb the transfer tax and transaction costs and ride out short-term price movements. For a first home, the 95% loan cap and the ASP scheme can make buying feasible with modest savings.

Renting stays the better choice if your residence permit is short, your plans are uncertain, or you are still learning a city and don't yet know which neighbourhood suits you. There is no penalty for waiting, and Finland's rental market is well-regulated. If you are new to the country, it is usually wiser to rent first, build a local credit and employment history, and buy once you understand both the city and the housing-company system. Our guides on finding an apartment and Finnish rental contracts are good starting points either way.

Where to Get Reliable Information

• InfoFinland — infofinland.fi/en/housing/buying-a-home: plain-language overview in multiple languages
• Vero (Tax Administration) — vero.fi: transfer tax rates, the debt-free-price rule, and a transfer tax calculator
• Ministry of Defence — defmin.fi: permit requirements and fees for non-EU/EEA buyers of real estate
• Finanssivalvonta — finanssivalvonta.fi: the loan cap and consumer guidance on housing loans
• National Land Survey (Maanmittauslaitos) — maanmittauslaitos.fi: public purchase witnessing, the Property Transaction Service and registration of title
• State Treasury (Valtiokonttori) — valtiokonttori.fi: the government guarantee for housing loans and ASP

Property is the largest purchase most people ever make, and the figures above can change year to year. Use the official pages for the current rates and rules, and consider professional advice — a lawyer or an experienced agent — before signing anything, especially for your first Finnish purchase.