Foreigners can freely buy property in Finland. Here is how the process works, from searching to signing.
Yes. There are no restrictions on foreigners buying apartments or houses in Finland. You do not need Finnish citizenship or even a residence permit to purchase property. However, getting a mortgage from a Finnish bank usually requires residence in Finland and a regular income.
Most Finns in cities own an apartment in a housing company (asunto-osakeyhtiö). You buy shares in the company that entitle you to a specific apartment. You also pay a monthly maintenance charge (yhtiövastike, typically 3 to 7 euros per square metre). Detached houses (omakotitalo) and row houses (rivitalo) are also common, especially outside city centres.
Search on oikotie.fi, etuovi.com, or through real estate agents (kiinteistönvälittäjä). When you find a property, make an offer. If accepted, you sign a preliminary agreement and pay a deposit (typically 2 to 5 percent). The final transaction is completed at a bank or real estate agent office. A public purchase witness (kaupanvahvistaja) is required for houses but not for apartment shares.
Finnish banks typically lend up to 85 percent of the purchase price (you need at least 15 percent as a down payment). Mortgage interest rates in Finland are among the lowest in Europe. Loan terms are usually 20 to 30 years. You need a stable income, clean credit history, and residence in Finland. Compare offers from multiple banks.
Transfer tax is 2 percent for apartment shares and 3 percent for houses and land. First-time home buyers aged 18 to 39 are exempt from transfer tax. Additional costs include the real estate agent fee (paid by the seller, typically 3 to 5 percent), possible renovation fund contributions, and notary or lawyer fees.
Common mistake
Not checking the housing company financial situation before buying an apartment. A housing company with large loans or upcoming renovations can mean high monthly charges. Ask to see the latest financial statements and renovation plan (kunnossapitotarveselvitys).
Good to know
First-time home buyers under 40 in Finland are exempt from the 2 percent transfer tax. This can save thousands of euros on your first property purchase.