Buying a property in Finland

Purchase price of a property in Finland

Finland is a popular real estate destination for its Scandinavian and Russian neighbors. You can buy houses in major Finnish cities such as Helsinki, Tampere, and Turku, as well as properties in the attractive areas of Lapland and Lockland. Helsinki is the most expensive place with apartment blocks at 3,400 to 4,200 euros per square meter. The demand for rental houses is very high, and the rental fee for a small apartment is 500 to 700 euros per month. Housing prices are higher in Espoo and Vantaa, outside Helsinki. A one-bedroom apartment in Turku costs 70,000 to 80,000 euros, half the price of one in Helsinki. Land prices start at 15,000 euros, while coastal land costs around 50,000 euros and houses cost up to 130,000 euros.

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Topics reviewed in this article:

• The process of buying a property in Finland
• Obtaining residence in Finland by buying a property
• Critical legal tips for buying a property in Finland

The process of buying a property in Finland

Foreigners can buy a property in Finland, just like Finns, since 2000. However, foreigners are restricted from purchasing a house in the Algerian archipelago. Since 2020, the Finnish government has passed a law, which requires a foreigner (especially Russian citizens) to obtain the Ministry of Defense’s approval before buying a property in Finland.

The steps for buying a property in Finland are as follows:

The first step is the selection of the property by the buyer. An applicant must check all the documents related to the property, for example, the official paper of the house. Negotiations begin after the buyer approves the property standards. Then, the seller and the buyer will agree. The two parties do not have much influence to conclude the contract. Once the buyer is satisfied and makes sure that the property meets one’s standards, one only needs to agree on the sale price with the seller. The representatives of real estate and banks in Finland have the most critical and technical role in this contract.

To transfer property in Finland, a notary must provide the necessary approvals. The identity of the applicant and the owner of the property or their representatives must be verified and confirmed. Once the buyer and seller have agreed, they must object to the performance of the notary sale if there is a notary public. This agreement must be in writing, signed by both parties, and contain the following information:

• Customer name
• Seller Name
• Purpose of the purchase
• Purchase price
• Other conditions possible

Both the buyer and the seller must show some personal identification to the notary. Otherwise, the agreement will be void. The buyer must pay the transfer tax before becoming the registered owner of the property. The tax on buying a property in Finland is 4% of the property’s value, and the applicant can pay it directly or online in any local bank. If you need help with this process, your bank or notary can provide guidance.

Once the buyer has paid the tax, one can register the property. It should be done in the district court where the property was located six months after the purchase. The registration fee is a small amount. You must submit the following documents with your request:

• Original sale agreement
• Agreed copy of sales contract
• Receive paid transfer tax
• Receive paid registration fee

The registration process generally takes at least a week or sometimes a little longer.

After the buyer completes the documents, the buyer and seller need to sign the bonds, agree on the date of the agreement, and make the transaction. These documents are usually in Finnish, but there is a permanent translator at the company, property, or bank to help translate their documents. It takes about 14 days to complete all the administrative steps required to purchase a home in Finland.

Obtaining residence in Finland by buying a property

Some people are looking for migration to Finland by purchasing a property and obtaining a residence permit in this country. One can invest in Europe in a variety of ways. Buying a property is one of the most popular methods that have less risk, long-term, and short-term profits. The applicants do not need to have a business plan to invest in real estate. They also do not need a degree or language certificate and need to have enough capital. But you should know that as a foreigner you cannot get residence in all countries by buying a property. You can obtain a residence permit by purchasing a property in some European countries such as Portugal, Greece, and Spain. Finland is one of the countries that does not grant residence to foreigners just by purchasing a property unless your property is purchased in the form of a business plan.

Critical legal tips for buying a property in Finland

The seller must be honest about any problems and issues in the property at the time of the transaction. If the transaction takes place and the new owner had to spend more than 5% of the value of the property to solve the property’s problems, the buyer can cancel the transaction. To minimize the risks of an expensive and lengthy legal process, it is recommended to contact a professional property purchase lawyer in Finland when preparing a property so that one can make the necessary inquiries before the transaction. Checking the condition of the property before the purchase can also help you make the right choice.