The listing shows a low price and the flat looks like a bargain. Then you read the second number: your share of the housing company's debt, and the third, the monthly charge. The sale price (myyntihinta) and the debt-free price (velaton hinta) are not the same thing in Finland, and the difference decides everything that follows. Buying property in Finland is not complicated, but it rewards the buyer who reads the housing company's papers.
What can you buy when buying property in Finland: shares or real estate?
Finland has two ownership forms.
- Housing company shares (asunto-osake). Most flats and terraced houses. You own shares in a taloyhtiö (housing company), and the shares give you the right to occupy a specific flat. The company owns and maintains the building.
- Real estate (kiinteistö). A detached house with its plot, owned directly.
The distinction drives tax, paperwork and even who may buy. It also decides what you inspect: with shares, the company's finances matter as much as the flat; with real estate, the land and building are yours entirely.
Can foreigners buy property in Finland?
EU and EEA citizens do not need any authorisation on the Finnish mainland. Outside the EU and EEA, InfoFinland says a permit from the Ministry of Defence is generally needed to buy real estate, but not housing company shares, nor a purchase together with a spouse who is an EU or EEA citizen.
Swiss citizens: since 13 June 2025 the permit is not required where requiring it would conflict with the EU-Switzerland free movement agreement. If in doubt, you can ask the Ministry of Defence, free of charge, whether your purchase needs a permit.
British citizens fall under the third-country rule, so a house with land generally needs the permit, a flat does not. See moving to Finland from the UK.
On the Åland Islands the rules are different: see below.
How much is transfer tax in Finland?
The varainsiirtovero is paid by the buyer on the debt-free price. Vero lists these rates:
- 1.5 per cent on housing company shares;
- 3 per cent on real estate;
- 1.5 per cent on other securities.
They apply to contracts signed on or after 12 October 2023. The exemption for first-time buyers has been abolished for contracts signed from 1 January 2024. For shares, you pay on the signing day, otherwise late interest applies. For real estate, you pay before you apply for registration of ownership. For a newly built home, within two months of the transfer.
Other costs in 2026: registration of ownership for real estate at the National Land Survey costs €172; registration of ownership of flat shares in the housing register is €92; a public witness of sale costs €143; having the Land Survey draft the deed, with registration, costs €236.
Which documents will the bank, the Land Survey and Vero ask for, and in which order? Moovy can map the steps for your purchase and draft your questions in Finnish. A lawyer or a licensed real estate agent should review the deed and the financing.
How much can you borrow: the 95% loan cap?
The housing loan cap limits a mortgage to a percentage of the value of the collateral. The rule had been 90 per cent, or 95 per cent for a first home. On 29 June 2026 the Financial Supervisory Authority (FIN-FSA) decided to raise the cap to 95 per cent for all borrowers from 1 July 2026, under legislation that took effect in June 2026 and allows it to add up to five percentage points. The FIN-FSA presents it as a response to a weak housing market, and it is temporary, reviewed every quarter. On 1 October 2026 the FIN-FSA decided to leave the eased cap unchanged.
In practice, you still need at least 5 per cent of the price in your own savings. Guarantees from a state or insurer are generally not counted in the cap. Banks decide freely whether to lend, on income, collateral and credit history, and a newcomer with no Finnish income may be asked for a larger down payment. We found no official rule specific to foreigners. Start with opening a bank account in Finland.
What should you check before buying property in Finland?
For shares, ask for:
- the managing agent's certificate (isännöitsijäntodistus) showing charges, debt and planned works;
- the housing company's articles and maintenance plan;
- the monthly charges: hoitovastike for maintenance and rahoitusvastike for your share of the company's debt.
Major works, such as pipe renovations, façade or roof repairs, are shared among the owners, so a cheap flat in an old building can be expensive in practice. Inspect the flat: you cannot complain later about a defect you should have noticed, though the seller must disclose known defects. InfoFinland says a written offer binds you and withdrawing may cost a penalty. The seller's liability for defects lasts two years for shares and five years for real estate.
How does the purchase proceed step by step?
- Agree the financing with your bank, with your identity code in place. See the Finnish personal identity code.
- Make an informed offer.
- Shares: verify the ownership, sign, pay the transfer tax in OmaVero the same day, and register your ownership with the National Land Survey. The bank often handles registration if it finances the purchase.
- Real estate: sign the deed before a public witness of sale, or online in the Land Survey's service with strong identification. Pay the tax, then apply for registration of title (lainhuuto) within six months.
- Put electricity, insurance and your DVV address in your name.
Is buying property in Finland a good first step for a newcomer?
Often not the first one. A mortgage needs a bank that trusts your income, and a newcomer without a Finnish pay history may be asked for a bigger down payment. Registration, a personal identity code and a bank account come first. Renting for a year teaches you the neighbourhoods, the commute and the winter, and spares you a purchase you may regret. If you buy as a home for the long term, the transfer tax, the maintenance charges and the maintenance plan of the housing company are the things to compare, not the asking price alone.
What are the yearly costs after you buy?
The property tax (kiinteistövero) is due from the owner on 1 January, with the decision in March. In 2026 the municipal rates range from 0.41 to 1.00 per cent for a main residence, from 0.93 to 2.00 per cent for a secondary or leisure home and from 1.30 to 2.00 per cent for land. Add the monthly housing company charges, home insurance and, for houses, upkeep. See cost of living in Finland.
What changes on the Åland Islands?
Without regional right of domicile (hembygdsrätt), you generally need an acquisition permit (jordförvärvstillstånd) from the Government of Åland to own land or real estate, or to lease it for more than five years. It is usually granted after five years of residence, or for a newcomer for a main home on less than 4,000 square metres in a residential zone, with a concrete settlement plan. Shoreline plots are usually excluded. The permit costs €334 per applicant (2026). Shares in a housing company (bostadsaktiebolag) can be bought without a permit unless the company's own permit sets a condition. See moving to Åland.
Which mistakes are expensive?
Comparing sale prices instead of debt-free prices. Ignoring the maintenance plan. Counting on a first-time buyer exemption that no longer exists. Signing a house deed without a public witness. And treating the 95 per cent cap as permanent: it is temporary, and your bank may still ask for more.
Renting first is a fair way to learn a city before you commit. See renting in Finland.