Finland – Property Letting

How does the property letting process work in Finland?

The Act on Residential Leases (481/1995) underpins the Finnish rental market, setting out clear rules on matters including rent review procedures, lease termination, and security deposits. Any landlord should become familiar with this legislation before marketing a property. By European standards, the process from advertising through to handing over keys is generally efficient, though careful record-keeping at each stage pays dividends later.

Finding and screening tenants: Properties are commonly marketed via Finnish rental websites, through letting agencies, or on housing company notice boards. Landlords are advised to review a prospective tenant’s credit standing — credit reports are available through Finnish reference agencies such as Asiakastieto. Finnish law prohibits any form of discrimination in tenant selection on the grounds of ethnicity, nationality, religion, or other protected characteristics.

The tenancy agreement: All residential lettings should be concluded through a written contract. A properly drafted lease sets out the monthly rent, the security deposit arrangements, and the procedure for ending the tenancy. Although Finnish law technically recognises oral agreements, a written contract is universally expected in practice and is essential for resolving any subsequent dispute effectively.

Fixed-term versus open-ended leases: An open-ended tenancy runs until one of the parties formally brings it to an end. A fixed-term agreement, by contrast, specifies from the outset the date on which the tenancy will conclude, and it terminates automatically on that date without either party needing to serve notice.

Essential clauses: A well-drafted lease should address the rent level and payment date, the deposit amount and the conditions under which it will be returned, any prohibitions on pets or smoking, an index-linked rent adjustment mechanism if desired, the condition of the property at the start of the tenancy, and the process for managing repairs. Both parties benefit from agreeing on the property’s state of repair before occupation begins, since this shared understanding makes it far simpler to settle any disagreements about damage at the end of the tenancy.

Condition report: Although not a statutory requirement, preparing a written move-in inspection report accompanied by dated photographs is widely accepted as best practice. Noting any pre-existing defects in the property at the time the lease is signed, with the tenant’s acknowledgement, protects both sides when the time comes to assess the property’s condition at check-out.

What types of rental arrangements are available in Finland — long-term, short-term, and holiday lets?

Finland distinguishes between long-term residential tenancies, short-term lettings, and holiday rentals. Each category carries its own regulatory implications, and the rules governing short-term and holiday lets are currently evolving rapidly.

Long-term residential letting represents the standard arrangement under the Act on Residential Leases (481/1995). Under Finnish housing law, stays exceeding 28 days are treated as conventional residential leases, attracting the full range of tenant protection provisions. Long-term letting has an established legal infrastructure and remains the predominant form of private renting in Finland.

Short-term letting (Airbnb-style): Legislation expected to take effect from the start of 2026 will significantly reshape the short-term rental landscape and introduce new constraints on the letting of investment properties. Under the proposed rules, short-term rentals of investment properties will be permitted only for a capped number of days — currently expected to be 90 days per year.

Owner-occupiers will retain greater freedom to let their own homes for short periods, for holiday purposes, and for stays lasting longer than four weeks. The latest information indicates that the legislation is expected to enter into force around summer 2026, approximately six months later than first planned. Landlords should monitor the Ministry of the Environment (ym.fi) for the latest updates.

Municipal variation: Finnish municipalities are introducing their own rules for short-term rentals, with Helsinki at the forefront. Helsinki now requires professional hosts — particularly those who do not live in the property being rented — to obtain municipal permits before regularly engaging in short-term letting activities. Other major cities such as Tampere, Turku, and Espoo are developing comparable frameworks, with each municipality empowered to set its own conditions regarding permits, maximum rental durations, and operational requirements.

Housing company rules: Housing companies and building associations maintain their own regulations, which may restrict or entirely prohibit short-term letting within their buildings. Breaches can carry serious consequences. Always review the articles of association and internal rules of your building before advertising any property for short-term rental.

Tax treatment: Income from short-term letting is classified as passive rental income and is not subject to any separate tax regime compared with long-term rental earnings. Both categories are taxed as capital income at identical rates.

What rental income can landlords expect in Finland, and how are rates set?

Finland does not operate a blanket system of rent regulation or statutory rent caps for privately let properties. Rental levels are negotiated freely between landlord and tenant, though the law does provide a mechanism for contesting rents that are clearly disproportionate to the local market.

While parties are at liberty to agree on the rent, a court may order a reduction if the agreed figure substantially exceeds the prevailing average market rate for comparable properties in the same area. This backstop preserves landlords’ commercial freedom while offering tenants some protection against excessive charges — a lighter-touch approach than the regulated rent zones seen in countries such as Germany or the Netherlands.

Rent increases during a tenancy: A landlord cannot unilaterally raise the rent during the term of a lease unless the parties have explicitly agreed on the basis for any such increase. Rent may be tied to an index — for example, the consumer price index or cost of living index — or to a combination of an index and a minimum uplift clause. Where a landlord wishes to raise the rent, written notice must be given in advance. An increase of more than 15% in a single year is generally considered unreasonable, though whether any particular increase is justified is assessed on the facts of each individual case.

Current market rates: Rental values differ considerably depending on location. Helsinki, Espoo, and Tampere attract the highest rents, while smaller towns and rural areas offer significantly more affordable options. For up-to-date average rental data, refer to Statistics Finland (stat.fi) or Vuokraovi.com rental market reports. Always apply a current-year qualifier when comparing figures, as rental markets in Finland have experienced notable fluctuations in recent years.

Do landlords need to provide a furnished or unfurnished property in Finland?

Finnish law imposes no obligation on landlords to supply furnished accommodation. Letting a property without any furniture, white goods, or fittings is the dominant norm in the Finnish private rental market — a notably different convention from markets such as France or Ireland, where furnished lets are common and carry specific legal classifications.

In the Finnish rental market, tenants should not expect to find kitchen appliances, curtains, or light fixtures supplied as standard. Properties are routinely let without cookers, refrigerators, or washing machines, and tenants bring their own belongings accordingly. This expectation is well established and broadly understood.

When a furnished property is let, it is customary to attach a separate inventory schedule to the lease agreement listing all items of furniture and their condition. This appendix forms part of the tenancy and serves as the reference point for assessing the state of furnishings at the end of the letting period.

Tax implications of furnished lets: Where a rented studio apartment is let furnished, a deduction of €40 per month (or €1.30 per day) may be claimed against rental income. For furnished apartments with at least two rooms, a deduction of €60 per month (or €2 per day) applies. Verify the current figures with the Finnish Tax Administration (vero.fi), as these amounts are subject to revision.

Furnished lettings are more frequently encountered in the short-term, holiday, student, and corporate rental sectors. There is no separate regulatory classification that mandates or restricts what kind of furnished or unfurnished accommodation may be offered — the distinction is essentially a commercial one rather than a legal requirement.

Do you need a licence or registration to let a property in Finland?

For conventional long-term residential letting, Finland requires neither a landlord licence nor registration with a central tenancy authority. This makes the Finnish system considerably simpler than some comparable markets — Scotland, for example, obliges all private landlords to register with their local council — and removes a significant administrative burden for new landlords.

Foreign individuals and entities are, however, required to disclose income and property ownership to the Finnish authorities. Anyone earning rental income in Finland — irrespective of where they live — must report it to the Finnish Tax Administration, with the precise tax obligation depending on residency status. This tax registration is a legal requirement for all non-resident landlords but is distinct in nature from a landlord licence.

Short-term letting — emerging permit requirements: From 2025, under the revised Building Act, hosts who regularly offer properties for short-term rental will be required to secure permits, with such units being reclassified as commercial accommodation. Municipalities may be granted authority to determine whether short-term rental activity is permissible within residential buildings, enabling localised regulatory control.

Professional or regular hosting activity requires municipal approval, especially in cases where the host does not reside in the property being let. The line between occasional and professional hosting will determine which rules apply to any given situation.

Landlords who own apartments within Finnish housing companies (asunto-osakeyhtiö) should also examine their building’s articles of association, since individual housing companies retain the power to impose their own limitations on subletting and short-term rental. Contact your local municipality or the Ministry of the Environment for current permit requirements.

How do you obtain a landlord licence or register as a landlord in Finland?

Since no national landlord licence exists for long-term residential letting, the principal “registration” process for most Finnish landlords is one of tax compliance. For short-term or professional letting, municipal permit applications are becoming an increasingly necessary additional step. The stages set out below apply to the majority of landlords beginning to let property in Finland.

1. Register with the Finnish Tax Administration: Rental income arising from property let in Finland is subject to Finnish taxation regardless of where the landlord is based. Tax is levied at the capital income rate. Register through the MyTax portal (vero.fi) at the point at which you begin letting. The process can be completed online without any requirement to be physically present in Finland.
2. Set up prepayments: The Tax Administration advises landlords to arrange tax prepayments as soon as they begin receiving rental income, thereby avoiding the accumulation of arrears. Prepayment arrangements are set up and adjusted through MyTax.
3. Review housing company rules (if applicable): If you hold shares in a Finnish housing company (asunto-osakeyhtiö) — the most prevalent form of apartment ownership in Finland — examine the articles of association for any provisions relating to subletting or short-term letting before proceeding. Inform the housing company board of your intention to let, as company rules commonly require this.
4. Draft and sign a written tenancy agreement: Use a reputable lease template, such as those provided by the Finnish Association of Landlords (vuokranantajat.fi) or a licensed letting agent. Confirm that the agreement conforms with the Act on Residential Leases (481/1995).
5. Apply for a municipal short-term letting permit (if applicable): Helsinki requires professional hosts — particularly those not residing in the rental property — to obtain municipal approval before conducting regular short-term letting activity. Applications are assessed against zoning and building regulations. Submit your application to your municipality’s building control or housing authority.
6. Obtain a Finnish personal identity code or business ID: Non-resident landlords who need to deal with Finnish authorities will generally require a Finnish personal identity code (henkilötunnus) or, where a company is involved, a business ID (Y-tunnus). These are issued by the Digital and Population Data Services Agency (DVV) and the Finnish Patent and Registration Office (PRH) respectively.
7. Open or designate a bank account for rent payments: Rent in Finland is almost universally paid by bank transfer. While a Finnish account is not a legal prerequisite, having one makes both payment processing and tax administration considerably more straightforward.

There are no nationally set licence fees for long-term residential letting (as of 2025). Municipal permit fees for short-term letting are determined locally and vary between municipalities — contact your municipality’s building services department for current figures, as these may be updated.

What are the rules around deposits in Finland?

Security deposits are a standard feature of Finnish tenancies and are regulated under the Act on Residential Leases. Unlike the UK and Ireland, where statutory deposit protection schemes require funds to be lodged with government-approved third parties, Finland has no equivalent centralised system — deposits are generally held either directly by the landlord or through a bank arrangement.

Landlords typically require a security deposit to safeguard against unpaid rent or damage caused by the tenant. The deposit cannot exceed three months’ rent; in practice, the amount is usually one month’s rent and most commonly two months’ rent.

Almost every Finnish tenancy agreement stipulates that the tenant must pay a rent security deposit before taking occupation. This deposit ordinarily equates to two months’ rent, with three months’ rent representing the statutory maximum.

Holding the deposit: Some tenants prefer to provide a bank guarantee (pankkitakaus) — a document issued by their bank — rather than paying a cash deposit. If the tenant holds a security deposit account, the landlord is required to sign the deposit certificate issued by the tenant’s bank and return it to the tenant when the tenancy concludes without any deductions being made.

Returning the deposit: When the tenancy ends, if all rent has been paid on time and the property has not been damaged, the full deposit must be returned without undue delay. Should the tenant have caused damage to the property, the landlord is entitled to arrange repairs at the tenant’s cost, deducting the necessary sum from the deposit. Unpaid rent may also be offset against the deposit. If the final inspection reveals no issues and the rent account is clear, the deposit must be returned promptly.

The legislation does not prescribe a specific number of days within which the deposit must be returned, but any unreasonable delay may expose the landlord to a legal claim. Carrying out a thorough move-out inspection and agreeing in writing on any proposed deductions before the tenant leaves is strongly advisable.

Who is responsible for maintenance and repairs in Finland?

Finnish rental law strikes a broadly balanced division of responsibilities between landlord and tenant. As a general rule, structural upkeep, habitability standards, and significant repairs are the landlord’s domain, while the tenant is accountable for the everyday care of the property.

A landlord is obliged to ensure that the property is in satisfactory condition and meets applicable health and safety requirements. Substantial repair or maintenance issues must be addressed without unnecessary delay. Failure to do so may entitle the tenant to claim a rent reduction or, in serious cases, to terminate the lease.

The tenant’s primary obligations are to pay the agreed rent on time and to look after the property with reasonable care. If the tenant causes damage through carelessness or negligence, they are liable to compensate the landlord accordingly. This liability extends to damage caused by visitors to the property.

Ordinary wear and tear during the tenancy is generally treated as the landlord’s responsibility, though the parties may agree to a different arrangement. This mirrors the approach taken in most European countries, where fair wear and tear is not recoverable from the tenant. Unlike more prescriptive statutory frameworks — such as Australia’s Residential Tenancies Acts with their specific timeliness obligations — Finland’s regime is principle-based, leaving disputes to be resolved on a case-by-case basis.

If damage occurs to the property during the tenancy, the tenant must notify the landlord immediately and may be required to pay compensation. Any modifications or repair work that the tenant wishes to carry out must be approved by the landlord in advance.

Disputes: Where direct negotiation fails to resolve a disagreement, either party may seek mediation, refer the matter to the Consumer Disputes Board, or commence proceedings in the district court. The Consumer Disputes Board process is free of charge and is widely used to resolve landlord-tenant disagreements in Finland.

In housing companies: Where the property forms part of a Finnish housing company, the company (taloyhtiö) bears responsibility for the structural fabric of the building, shared systems such as heating, plumbing, and electrical mains, and all communal areas. The individual landlord is responsible for the interior of the apartment and its fixtures and fittings.

How are letting agents used in Finland, and what do they charge?

Letting agents (vuokravälittäjä) are actively involved in the Finnish rental market, particularly in urban areas. Their services typically encompass marketing the property, conducting viewings, vetting applicants, preparing lease documentation, and, in some cases, providing ongoing management services. Engaging an agent is optional but particularly practical for non-resident landlords or those unfamiliar with Finnish rental legislation.

Services typically provided: A standard letting agency engagement in Finland covers listing the property on rental platforms, arranging viewings, performing credit checks on prospective tenants, drafting the tenancy agreement, and handling the deposit. Comprehensive property management packages — encompassing rent collection, maintenance coordination, and housing company liaison — are also available at an additional cost.

Who pays agent fees? In Finland, agent fees are ordinarily charged to the landlord, though this is not universally the case. There is no single statutory cap on letting agent fees charged to either party — unlike England, where the Tenant Fees Act 2019 prohibited most agent charges to tenants. As of 2025, the typical market rate for a tenant-find service equates to approximately one month’s rent plus VAT at 24%, though this varies between agencies and service packages. Always obtain a written quotation and confirm current market rates directly with agencies, as figures may change.

Regulation of agents: Real estate agents practising in Finland must hold a professional licence (LKV — Laillistettu kiinteistönvälittäjä) granted by the Regional State Administrative Agency (AVI). This licensing regime promotes professional standards across the sector. When choosing a letting agent, confirm their LKV licence is current. The Regional State Administrative Agency (avi.fi) and the Central Federation of Finnish Real Estate Agencies (KVKL) are the appropriate bodies to consult on agent standards and complaints procedures.

For landlords based abroad, a comprehensive property management agreement is a practical necessity. Agents may also be granted power of attorney to act on a landlord’s behalf — particularly important for non-residents who need a representative to liaise with tax authorities, housing companies, and tenants on an ongoing basis.

What taxes apply to rental income in Finland?

Rental income derived from Finnish property is subject to Finnish capital income tax, irrespective of the landlord’s country of residence. The system is administered by the Finnish Tax Administration (Verohallinto — vero.fi), which offers extensive guidance in English.

Capital income tax rates (as of 2025): Earnings from renting out an investment property are classified as capital income and taxed accordingly. The capital income tax rate is 30% on amounts up to €30,000, rising to 34% on any portion exceeding that threshold.

Resident versus non-resident landlords: Rental income from property situated in Finland is taxable in Finland even where the landlord resides abroad. Tax is always assessed at the capital income rate, and the landlord’s country of residence does not alter the applicable rate. Both Finnish residents and non-residents are therefore subject to identical capital income tax rates on their Finnish rental earnings.

Allowable deductions: Landlords are required to report both rental income received and costs incurred in connection with letting. Typical deductible expenses include housing company maintenance charges, water costs, and repair expenditure. These items reduce the net amount on which tax is payable. Other potentially deductible expenses include mortgage interest on investment property, and property management fees.

Property tax: Property tax applies only to real estate holdings. The rate applicable to residential buildings ranges from 0.41% to 0.90%, depending on the municipality in which the property is located. Property tax does not apply directly to apartment shareholders — it is generally incorporated into the maintenance charge levied by the housing company.

Double taxation treaties: Finland has concluded tax treaties to eliminate double taxation through the credit method with a number of countries, including other Nordic nations. Certain treaties, however, preclude Finland from taxing rental income from apartments where the income is received by a person resident in the treaty country. Verify the treaty applicable to your country of residence via the Finnish Tax Administration.

Reporting obligations: Your rental activity is considered to have begun from the moment you begin making the property available for letting — including placing an advertisement online to attract tenants. Non-resident landlords are advised to engage a local tax adviser, especially where cross-border treaty provisions are relevant.

What are the rules around ending a tenancy or evicting a tenant in Finland?

Finland’s tenancy legislation is generally regarded as moderately favourable to tenants, particularly with regard to security of tenure and eviction safeguards. Landlords retain meaningful rights, but the process for recovering possession is more formally prescribed than in some comparable jurisdictions.

Notice periods for open-ended tenancies: The notice period a landlord must give depends on the length of time the tenancy has been running. Where the tenancy has been in effect for less than one year, the landlord must give three months’ notice. Where the tenancy has been in effect for more than one year, the notice period extends to six months. A tenant wishing to end an open-ended tenancy is required to give only one month’s notice.

Fixed-term tenancies: A fixed-term tenancy cannot be brought to an end by either party during its agreed duration. Both landlord and tenant are bound for the full term, which gives the landlord certainty of income but reduces flexibility.

Grounds for immediate termination: A landlord may not terminate a lease without a legitimate reason. Acceptable grounds include non-payment of rent, significant damage to the property, or a serious breach of the lease terms. A tenant’s failure to pay rent for four consecutive months is treated by the courts as sufficiently serious to justify termination of the agreement.

The eviction process: A landlord has no power to remove a tenant unilaterally — a court order is always required. The tenant is protected by what is sometimes termed “home peace” until they have actually vacated the property. Where a tenancy has been validly terminated or rescinded and the tenant refuses to leave, the landlord must apply to the district court for an eviction order.

Enforcement of any eviction order is carried out by a court-appointed distrainor. The landlord delivers the court decision to the distraint office, following which the distrainor issues the tenant with a formal moving request specifying the date by which they must vacate before the distrainor intervenes.

This court-based mechanism makes eviction in Finland a procedurally rigorous undertaking — more akin to the French or Dutch model than to jurisdictions offering accelerated possession routes. Landlords should plan for a process lasting several months in contested cases and should seek advice from a Finnish housing lawyer if the tenant disputes the termination.

What should expat landlords know about managing property remotely in Finland?

Managing a Finnish rental property from overseas is entirely workable but demands careful attention to tax compliance, the delegation of authority, and communication with Finnish institutions. Non-resident landlords face no legal barriers to owning or letting property in Finland, but they carry specific ongoing compliance obligations.

Tax registration and prepayments: Rental income from Finnish property remains taxable in Finland regardless of where the landlord lives. The Tax Administration strongly recommends establishing prepayment arrangements as soon as letting begins, in order to prevent the build-up of tax arrears. Registration and prepayment requests are managed through the MyTax online portal, which is available in English and supports digital authorisation for agents acting on behalf of the landlord.

Digital authorisation and power of attorney: Landlords can authorise a representative to handle their tax affairs remotely via the Suomi.fi e-Authorizations service. For broader property management — covering maintenance coordination, housing company liaison, inspections, and tenant communication — granting a formal power of attorney (valtakirja) to a local agent or trusted contact is strongly recommended.

Property management companies: A full-service property management firm in Finland can take charge of rent collection, maintenance, housing company matters, tenant relations, and annual tax reporting on the landlord’s behalf. For non-resident landlords, this is the most practical arrangement available, and management fees are deductible as allowable expenses for tax purposes.

Housing company obligations: Where the let property is an apartment within a Finnish housing company, the landlord holds shares in that company and carries ongoing shareholder obligations — including payment of maintenance charges (yhtiövastike), participation in shareholder decisions, and compliance with building regulations. A local property manager can fulfil these duties on the landlord’s behalf.

Repatriation of income: There are no restrictions on transferring rental income out of Finland. As an EU member state, Finland is subject to EU rules on the free movement of capital. Rental income should be declared in both Finland and the landlord’s country of residence in accordance with the applicable double taxation treaty.

Platform reporting: The Finnish Tax Administration receives information about income earned through digital platforms, both domestically and from abroad, and monitors this data for tax assessment purposes. Landlords should not assume that platform-generated income passes under the radar — proactive annual declaration is essential.

Frequently asked questions

Can a non-resident own and let property in Finland?

Yes. Non-residents face no legal restrictions on owning or letting residential property in Finland. Foreign individuals and entities are required to disclose their income and property ownership to the Finnish Tax Administration. Non-residents are taxed only on income sourced in Finland, at the same capital income tax rates that apply to residents. Register through MyTax before or as soon as you start letting.

Do I need a local agent to let my property in Finland?

There is no legal obligation to use a local agent for long-term residential letting. That said, non-resident landlords are strongly advised to engage a property management company or a licensed letting agent to handle tenant relations, housing company duties, and tax reporting. Confirm that any agent holds a current LKV licence (Laillistettu kiinteistönvälittäjä), which can be verified through the Regional State Administrative Agency (AVI).

Is there rent control in Finland?

There are no statutory rent caps or rent pressure zones in the Finnish private rental market (as of 2025). Rents are agreed freely between landlord and tenant, though courts retain the power to reduce a rent that substantially exceeds the prevailing local market average for comparable properties. Landlords may include index-linked increase clauses in lease agreements.

How much deposit can I ask for in Finland?

The security deposit must not exceed three months’ rent. In practice, one to two months’ rent is the typical amount. Finland has no statutory deposit protection scheme comparable to the UK’s tenancy deposit protection system — deposits are held directly by the landlord or through a bank guarantee arrangement. Refer to the Act on Residential Leases (481/1995) and vero.fi for any updated provisions.

Can I let my property on Airbnb in Finland?

Short-term letting via Airbnb is currently permitted in Finland, but legislation expected to take effect from January 2026 will restrict investment properties to a maximum of 90 short-term rental days per year. The regulatory environment in major cities such as Helsinki is already tightening, with municipal permit requirements, tax obligations, and specific operational standards being introduced. Check your housing company’s rules before advertising, as these may independently prohibit short-term letting.

What is the tax rate on rental income in Finland?

Rental income is classified as capital income and taxed at 30% on amounts up to €30,000, rising to 34% on any portion above that threshold (as of 2025). These rates apply equally to resident and non-resident landlords. Deductible expenses — such as maintenance charges, mortgage interest on investment property, and management fees — reduce the net taxable amount. Consult vero.fi for current guidance.

How long does a landlord have to return a deposit in Finland?

Once the final inspection has been completed, all rent has been paid, and no deductions are warranted, the security deposit must be returned to the tenant without undue delay. The Act on Residential Leases does not prescribe a specific number of calendar days for this purpose. Conducting a thorough and documented move-out inspection promptly at the end of the tenancy helps ensure matters are resolved quickly and without dispute.

What happens if I want to evict a tenant in Finland?

A landlord cannot remove a tenant without first obtaining a court order. Legitimate grounds for termination include non-payment of rent, serious damage to the property, or a significant breach of the tenancy agreement. After serving written notice, if the tenant declines to vacate, the landlord must apply to the district court. An eviction order is then enforced by a court-appointed distrainor, who serves the tenant with a formal departure notice. For any contested eviction, legal advice from a Finnish housing lawyer is strongly recommended.