Property Futures

Real Estate News, Reviews and Investment

Property Taxes High in Finland

Article: In Finland, property taxes are high and market prices unpredictable.

Within the last decade, the real-estate market in Finland has developed strongly after being a closed market for a long while.  It was not until the 1980s that the citizens of Finland were allowed to buy property overseas and non-residents permitted to invest in property in Finland.  In the province of Aland, there are still restrictions on the buying and selling of real estate.

Source: Strombo cba.ca/strombo

Source: Strombo cba.ca/strombo

Believe it or not, Finland is one of the very few countries in the world where the surface land is still expanding at approximately 7 km² every year. This is because of the phenomenon known as the post glacial rebound which has been happening since the last ice age.

This is interesting if you are considering real-estate investment in Finland.

  • The Finnish Constitution protects the right of private land ownership and 60% of the land in the country is privately owned with the other 20% (mainly forested areas in the north) being owned by the government.
  • Some land is owned by industries while municipalities own some of the rest.
  • There are not many real-estate transactions in the country, but locals as well as foreigners see land ownership as a stable form of investment.

Residential real estate in Finland

Buying real estate in Finland is a straightforward process and can be completed in a matter of weeks.

  • You do not really need a lawyer and your real-estate agent and your bank can take care of the legal formalities.
  • The deregulation of foreign ownership of Finnish property has made things easy.  Permits for foreigners to buy real estate were abolished in 2000 and foreigners and locals are treated on an equal footing.

The standard of housing is high and most properties are modern, well equipped and safe.  The different forms of housing available are:

  • Blocks of apartments
  • Terraced houses
  • Detached houses

Apartment blocks are the most common and apartments tend to be on the smaller side.  However, they are not restricted to the built-up areas and you can often find variety in the location in the form of open and green spaces.

  • Detached houses also tend to be popular and are equipped with excellent heating and sewage facilities.
  • Most of these houses were built recently but tend to be located in remote areas away from the major cities.
  • Terraced housing can be found in the more urban areas.

The bottom line

You should not consider buying property in Finland if you are a foreigner living there on a temporary basis.  Property taxes are quite high and prices in the local market can be unpredictable.

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