Housing in Finland
Buying a home in Finland is usually straightforward, but there are a few things you should be aware of when planning your move. Citizens of Nordic and EU/EEA countries can rent or buy a home without a residence permit. A local personal identity code and a bank account make it easier to get started with the process, but you cannot apply for them before moving to the country. Most housing listings can be found online, so that’s a good place to start your search. This page provides an overview of housing in Finland, as well as guidance on finding, renting and buying a home.
If you are moving to Åland, read about aspects that are particular to Åland on the page Housing in Åland.
Do you need a residence permit to get a home in Finland?
Citizens of Nordic and EU/EEA countries can rent or buy a home in Finland without a residence permit. However, EU citizens must register their right of residence for stays of more than three months. Those coming from outside the EU and EEA generally need a residence permit to live here. Read more about the right of residence on the page Right of residence and right to work in Finland.
Buyers from outside the EU and EEA may be required to obtain permission to purchase real estate (single-family homes, plots of land). No permit is required to rent an apartment or purchase a share in a housing company (apartment building, row house). Read more on the Ministry of Defence website.
What do you need before you can rent or buy a home?
You don’t need a Finnish personal identity code to sign a rental contract, but it makes the process much easier. You generally cannot get a personal identity code before moving to Finland, so the procedures may vary depending on the situation. In some situations, the only option is to negotiate with the landlord to sign a rental contract without a local personal identity code. Read about how to get a Finnish personal identity code on the page Personal identity code in Finland.
If you plan to buy a home, you must register as a customer with the Tax Administration before the sale. You can request registration yourself. Read more on the Finnish Tax Administration's website.
A Finnish bank account makes it easier to buy a home or pay rent. If you rent a home, it is customary in Finland to open a separate rental deposit account for the security deposit, and banks often require foreign customers to have an account with that bank in order to open a rental deposit account. Read more about opening an account in a Finnish bank on the page Bank accounts in Finland.
How do you find a rental apartment or a home to buy in Finland?
Most housing listings are now online. The most popular search services are Oikotie, Vuokraovi.com and Etuovi.com.
You can also look for housing listings for example, in newspapers, on social media or on noticeboards. You can also visit a real estate agency or post your own listing.
If you are moving to Finland for work, you should also inquire about the possibility of employer-provided housing. Applications for state-subsidised rental housing are made directly to the owners, and tenants are selected based on housing need as well as income and assets.
Rental, owner-occupied, and right-of-occupancy housing in Finland
In Finland, you can live in rental housing, owner-occupied housing, part-ownership housing or right-of-occupancy housing. Home ownership is the most common form of housing in Finland, but renting is also common, especially in large cities. Different types of housing vary in terms of cost, the application process, and the stability of tenancy, so you should choose the option that best suits your personal and financial circumstances.
Below is some information on what you should know about renting, home ownership and other types of housing.
In Finland, it is possible to rent housing on the open market or apply for state-subsidised rental housing, where rents are regulated and tenants are selected based on need. The availability of rental housing and rent levels vary considerably across the country. Especially in the capital city region, there is a constant shortage of rental housing.
A rental contract can be open-ended or for a fixed term. When renting an apartment, you are usually required to pay a security deposit, which is often equivalent to one or three months' rent. Tenants are usually also required to take out home insurance.
Rents for state-subsidised rental housing are usually slightly lower than those for private rental housing. These apartments are owned by municipalities, but also by non-profit housing corporations. Applications are made to the owner, and apartments are rented based on applicants’ housing needs and also their income and assets. Read more about rental housing on the Ministry of the Environment’s website .
Tenants’ rights are monitored by the association Finnish Tenants, who you can contact if you have problems.
Home ownership is the most common form of housing in Finland. You can own your home either through a housing company or outright as real estate. Housing companies are the most common form of home ownership, particularly in apartment buildings and row houses.
In a housing company, homeowners own shares that entitle them to occupy a specific dwelling. The shareholders of housing companies pay monthly maintenance charges, and the activities of a housing company are governed by the Limited Liability Housing Companies Act and its articles of association.
Direct ownership usually means buying a single-family home. In this case, as well as the building, you also own the land or hold it under a lease agreement, and you are responsible for maintaining the property yourself.
Apartment or house purchases are generally financed with savings and bank loans. Home loans are the most common type of financing for purchasing owner-occupied homes. The costs of a home loan are affected by both the general level of interest rates, the method of amortisation, the loan period and the amount you have saved up, what collateral you have and your customer relationship with your bank. Remember that if you are planning to buy a home in Finland and take out a bank loan in another Nordic country, you cannot generally use a home in Finland as security for the loan.
You can find information on the taxation of owner-occupied housing in the section Taxation of housing in Finland at the bottom of this page.
Learn more about owner-occupied housing on the Ministry of the Environment’s website.
Right-of-occupancy housing is an alternative to buying a home or renting. Applicants for state-subsidised or interest-subsidised right-of-occupancy housing must meet certain eligibility requirements. Owners of buildings built with other financing decide who to select as tenants.
A right-of-occupancy fee and a monthly maintenance fee are paid for the dwelling. The tenant has permanent use of the dwelling, but cannot purchase it. When you move out, the right-of-occupancy fee is refunded, index-adjusted.
To apply for a right-of-occupancy dwelling, you need a queuing number, which you apply for from the Housing Finance and Development Centre of Finland (Ara).
You can find more information on the websites of Ara and the Ministry of the Environment.
In a part-ownership apartment, the resident first lives there as a tenant, and once the lease term ends, they can purchase the apartment outright. Read about part-ownership housing on the Ministry of the Environment’s website.
Special housing situations
Housing in Finland can vary depending on your life situation. Affordable student housing is available for students, assisted living is available for older adults, summer homes or cottages are common for recreational use, and building your own home requires purchasing a plot of land. Below you can find out what you need to know in these specific situations.
Special student housing is available for students that is generally more affordable than apartments rented on the open market. There are various options available:
- Room in a shared apartment: Rents for rooms in shared apartments are significantly lower than standard rents, especially in large cities. In shared apartments, the bathroom and kitchen are often shared among a few students. Rooms in shared apartments can be either furnished or unfurnished.
- Studio: Studios intended for a single students are more expensive and are harder to find. There are limited numbers of studios, so you almost always have to go on a waiting list for one.
- Family apartment: Family apartments typically have 1–4 rooms and a kitchen or kitchenette. The apartments are intended for couples and families with children. You can usually apply for a family apartment if at least one of the spouses is a student.
Student housing is provided by local student housing associations and, in some cases, by educational institutions and other organisations. You can find more detailed application instructions and the selection criteria on the websites of the organisations in your area. There is a list of contact information for providers in various locations on the website of the Finnish Student Housing Association (SOA).
Demand for student housing is high, especially in large cities, and it can take a while to find a place to live. Demand is highest at the start of the autumn term, so it’s a good idea to start looking for housing well before the start of classes.
You can find more information and contact details for organisations that provide student housing on the website of the Finnish Student Housing Association (SOA).
As well as a permanent home, you can also buy a holiday home or cottage in a rural area of Finland. You can search for holiday homes for sale or rent using the same search services as those for owner-occupied and rental homes.
In most municipalities, the real estate tax on holiday homes is higher than the tax on buildings used for permanent residence.
A cottage cannot be your primary residence. Turning a summer home into a permanent residence requires a special exemption if there is no zoning plan for the area or if the lot has not already been designated in the zoning plan as a site for a permanent residence. Anyone planning to move permanently into a summer home should first contact the local building control services for guidance on the permitting process and preliminary information on any modifications that may be required to the building.
If you want to build a new house or cottage, you must first buy or rent a plot of land. When purchasing a plot of land, factors such as zoning, building rights and the intended use of the plot should be taken into account. The encumbrance certificate, the extract from the land register and the map show, among other things, the plot boundaries, the area, and any encumbrances.
Transfer tax is payable on the transfer of the plot; in real estate transactions, this tax is 4% of the purchase price. You can also lease a plot of land from the municipality or Metsähallitus, for example.
You can find more information on the Laatumaa.fi website.
You can find information about housing services for older adults in our guide Moving to Finland for older adults.
Housing costs and allowances
Housing in Finland is supported in many ways. For example, you may be eligible for general housing allowance if your income and living situation meet the eligibility requirements. When purchasing a home, you may be eligible for a deficiency guaranty, and the home saver’s bonus scheme (ASP) aims to encourage first-time homebuyers.
Before buying a home, it’s a good idea to find out what financial assistance you’re eligible for and how housing costs vary from one area to another. Learn more about housing allowance on the page Housing allowances in Finland and about ASP on the Ministry of the Environment’s website.
Buying or leasing a plot of land in Finland
When buying a plot of land, you should consider the planning situation and the construction rights of the plot, i.e. how much can be built on the plot, in what way and for what purpose. An encumbrance certificate, land register certificate and map will show whether the plot is encumbered by a mortgage, whether the plot includes rights to shared land and water areas, what the surface area of the plot is and the borders of the plot on the ground. The intended use of the plot can be found in the detailed or building plan.
It is also advisable to check with the local surveying office whether the road leading to the plot is public or private. Private roads may not be used for regular motor vehicle traffic without right of use.
Transfer of a plot is subject to transfer tax, which for real estate transactions is 4% of the purchase price. When the contract of sale is concluded, the purchaser is also given instructions for the registration of title.
The permitted building volume is decided by the municipality. The zoning master plan will show whether the area is designated for permanent or holiday dwellings.
Leasing a plot of land is also possible. Leases are made by many different bodies, for example municipalities and Metsähallitus. Read more about Metsähallitus plots on the website Laatumaa.fi.
Housing taxation in Finland
In Finland, there are various taxes associated with buying, owning, renting and selling a home. The taxes you have to pay depend on your circumstances. You must always file a tax return in Finland for real estate or apartments in housing companies located in Finland and the income derived from them.
Buying and owning a home
- Transfer tax: When you buy a dwelling, you pay transfer tax on the purchase price. Transfer tax is calculated based on the purchase price, and the amount depends on whether the property is in housing company (apartment or row house) or a single-family home.
- Real estate tax : Owner of single-family homes pay annual property tax, and the amount depends on the municipality and the value of the building and the plot. Real estate tax is not paid directly on housing company shares; instead, it is included in the maintenance fee.
- Home loan interest deduction: If you have a home loan, you can deduct the interest on it in taxation.
Renting an apartment
- Rental income: If you own an apartment in Finland and rent it out, the rental income you receive is considered capital income and is subject to tax.
Selling a home
- Own permanent residence: Capital gains are tax-free if you have owned the home for at least two years and lived there permanently for that time.
- Investment property or short-term ownership: If you sell a home that has not been your primary residence, capital income tax is payable on any profit from the sale.
You can find more information on various taxes on the Tax Administration’s website, and for questions on cross-border taxation on the Nordisk eTax service.
More information
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