Finland

Can you buy a home in Finland if you are not a Finnish citizen?

Buying a home in Finland is straightforward, even if you're not a Finnish citizen. If you're unable to travel to Finland, you can still buy remotely through a real estate agent. Visit Habita's property search to view properties for sale. If you can’t find what you're looking for through Habita, we can draft a purchase agreement that also covers properties listed by other Finnish real estate agencies.

What is a property purchase agreement with a real estate agent?

A property purchase agreement is a helpful option if you cannot find a suitable home through Habita's property search. With this agreement, you provide the real estate agent with criteria, and they will begin searching for a property that meets your needs. Habita charges a set-up fee of €500 (incl. VAT) for the purchase agreement, along with a consultancy fee outlined in the contract. The consultancy fee is payable upon the completion of the transaction.

The benefits of a purchase agreement include:

• Hiring a professional who will search for properties according to your preferences.

• If you can’t visit Finland, you can trust that your purchase is in capable hands.

• Saving time by avoiding house visits and keeping up with new listings.

• Having a local real estate agent who understands the area and Finnish laws and practices.

• The purchase agreement remains valid for the agreed-upon duration.

The real estate agent is for you – consider these things first

Before making your purchase, think about the purpose of the property. Is it:

• A summer home,

• A year-round home,

• A permanent residence,

• An investment property?

Finland is a large country, and public transportation outside metropolitan areas can be limited. Consider the following as well:

• Do you have a car?

• What services will you need nearby?

• Who will take care of the property when you’re not there?

Real estate in Finland

There are two main types of housing in Finland: real estate and apartment house companies. Real estate typically refers to a plot of land with a house or other buildings on it. In an apartment house company, you purchase shares that entitle you to manage a specific apartment, such as in a block of flats.

The costs and responsibilities differ between real estate and apartment house companies. When you buy real estate, you are responsible for maintaining the building. Typical expenses include:

• Property tax,

• Water, heating, and waste disposal fees,

• Repair costs.

In an apartment house company, owners share responsibility for property maintenance through a monthly fee, which can vary significantly between different companies.

Real estate agents help navigate the transaction process

Finnish banks generally won’t issue loans to foreign buyers without a permanent job in Finland. Therefore, it’s important to have your finances arranged before purchasing property. Banks will also conduct an initial verification of funds when foreign buyers purchase with foreign funds. If you are not a citizen of an EU or EEA country and wish to buy real estate, you need to obtain permission from the Finnish Ministry of Defence. However, if you're buying shares in an apartment house company, you don't need a permit. You also won’t need a permit if you’re buying real estate jointly with an EU/EEA national, such as a spouse or common-law partner.

The real estate agent acts on behalf of the buyer

Once you've found a suitable property and secured financing, you can proceed with the transaction. With Habita, the purchase price can be paid into a Habita client account, authorizing them to complete the purchase on your behalf. If the property shares are being used as collateral for a loan, the transaction will need to be settled through the seller’s bank. Your real estate agent can represent you at the bank with your authorization.

In Finland, transfer tax is paid on the total purchase price, which includes the possible debt to the housing co-operative. Foreign buyers will need a temporary personal identity number from the tax administration to make the payment, which your real estate agent can help obtain. Transfer tax rates are:

• 1.5% for apartment house company shares (paid at the time of the transaction),

• 3% for real estate (payable when applying for ownership registration, or within six months of signing the deed).

You can move into your new home once the tenure of apartment house company shares is transferred to you or when the ownership of real estate is registered in the National Land Survey of Finland’s land register. The transfer of tenure is always noted on the deed of sale. Additionally, for apartments, you will need to pay the maintenance fee, while real estate buyers are responsible for property taxes and other charges.

Ongoing support from your real estate agent

After the sale, you can ask your real estate agent to handle all practical aspects of the property for you. Habita offers an All-Inclusive package for €3000 (incl. VAT), which is especially useful if you're unable to travel to your new home. This package includes:

• Handling all necessary documents, including tax payments and property registration,

• Managing contracts related to electricity, water, internet, and insurance,

• Providing recommendations and, if necessary, contracts for property rental and cleaning companies,

• Offering advice and recommendations for building and renovation services.

For more details, contact your local agent directly or use the form provided.