Finland – Selling Property

What are the steps involved in selling property yourself in Finland?

Selling property in Finland without a traditional real estate agent is a viable and increasingly appealing route, motivated primarily by the prospect of avoiding commission costs. Nevertheless, it calls for thorough preparation and a firm understanding of Finnish property law. The exact process varies depending on whether you are selling a detached house or an apartment.

It helps to first understand the fundamental legal distinction between the two principal property types. When you sell an apartment in Finland, you are not ordinarily transferring a direct interest in land or a physical building — you are instead selling shares in a housing company (asunto-osakeyhtiö), which confer the right to occupy and use a specific apartment within a building owned by that company. Selling a detached house, on the other hand, involves the direct transfer of real estate (kiinteistö), encompassing both the building and the land it occupies.

The full private sale process involves the following steps:

1. Value the property. Establishing an accurate market value is the essential starting point for any sale. Private sellers in Finland can either commission a professional appraiser for a formal valuation or consult online valuation tools to obtain a preliminary estimate.
2. Gather all documents. Assemble all documentation relevant to your property, including the title deed, building permits, land registry records, and any existing contracts. Confirm that the property conforms with local planning and building regulations. For houses, you should also establish the zoning status of the area and obtain the property’s official identifier from the National Land Survey of Finland.
3. List and market the property. Prepare an attractive listing featuring high-quality photographs, a thorough written description, and key particulars such as room count, floor area, and available amenities. Make use of online platforms, property portals, and social media channels to reach potential buyers.
4. Fulfil your disclosure obligations. Finnish law places a firm and enforceable disclosure duty on the seller: you are legally required to supply buyers with complete and truthful information that could bear on their decision to proceed with the purchase. This responsibility is yours alone, even if you have engaged an estate agent or had a professional condition survey carried out; those parties perform their own distinct functions and do not assume your liability.
5. Negotiate and agree terms. Once a prospective buyer has been identified, agree on the sale price, any conditions attached to the sale, the deposit amount, and the intended completion date before progressing to the contract stage.
6. Draft the sales agreement (kauppakirja). A formal written sales agreement (kauppakirja) is a legal requirement and must be prepared with great care. It should set out all the terms governing the sale, including the final agreed price, the deposit amount, and a clear schedule for completing the transaction. Given the legally binding character of this document and the complexities of Finnish property law, it is strongly advisable to consult a local attorney or notary (julkinen notaari) with expertise in real estate matters to ensure the agreement is legally sound and protects both parties.
7. Sign in the presence of a purchase witness. The sale of real estate must be concluded in writing, and the agreement must be signed by both parties and witnessed by a notary in the presence of all signatories.
8. Register the title transfer. When real estate changes hands in Finland, the buyer is required to register the transaction with the Finnish Land Registry Office. This obligation does not extend to apartments, since they are not classified as real property. Registration documents must be submitted within six months of the transaction, or a financial penalty may be incurred. The registration process itself typically takes two to three months to complete.

Do most sellers in Finland use an estate agent, or is private selling common?

While selling independently is entirely possible for those who understand what it entails, the majority of Finnish sellers — particularly first-time sellers or those disposing of higher-value detached properties — opt to engage a licensed agent. This preference is largely driven by the legal and disclosure complexities that accompany Finnish property transactions.

Real estate brokerage in Finland is governed by the Act on Real Estate Brokerage Firms and Brokerage Firms of Rental Apartments (1075/2000, as amended). Under this legislation, only private traders or legal entities registered as real estate agencies are permitted to operate as agents. This formal regulatory environment gives professional agents a clearly defined standing that many sellers find reassuring. In contrast to some markets — such as the relatively open private-sale culture present in France or parts of Australia — the legal intricacies of Finnish property transactions tend to steer sellers towards professional assistance.

When acting on an instruction, the broker is obliged to have regard to the interests of both the client and the client’s counterparty. Furthermore, the broker carries specific disclosure duties to both sides of the transaction in relation to any material information that is, or should be, known to them and that could influence the outcome of the sale.

Private sale platforms do operate in Finland, and some sellers use them to good effect, particularly for apartments in housing companies where the transaction structure tends to be more straightforward. For foreign sellers who are not familiar with Finnish property law, however, selling without professional support introduces considerable challenges — especially for those unfamiliar with local market conditions or the technicalities of Finnish real estate regulation. Seeking qualified advice on legal and tax matters, at a minimum, is a worthwhile investment that can make a significant contribution to a smooth and successful sale.

How does capital gains tax work when selling property in Finland?

Finland levies capital gains tax at a rate of 30% on the taxable profit from a property sale; where the taxable capital income exceeds €30,000, the rate rises to 34% on the portion above that threshold. Tax is charged on the profit realised, not on the full sale price. Always verify the current rates with the Finnish Tax Administration (Verohallinto), as thresholds are subject to change.

The taxable gain is arrived at by deducting from the sale price the original acquisition cost, any qualifying improvement expenditure incurred during ownership, and the costs directly associated with the sale, such as agent fees. The 30–34% rates then apply to the resulting figure.

An alternative calculation method known as the deemed acquisition cost is also available. Under this approach, a fixed percentage of the sale price is treated as the acquisition cost, with the applicable percentage depending on the length of ownership. If the property has been held for fewer than ten years, 20% of the sale price is used as the deemed acquisition cost; for properties held for ten years or more, the deemed acquisition cost rises to 40% of the sale price. Sellers are free to use whichever method produces the more advantageous outcome.

The most significant relief available is the primary residence exemption. A gain arising from the sale of a home is exempt from capital gains tax where the property has been used continuously as the seller’s or their family’s permanent residence for at least two years during the period of ownership. This is broadly analogous to principal private residence reliefs available in many other countries, although the specific conditions differ — always verify the precise rules with the Finnish Tax Administration as they apply to your own circumstances.

There is also a minor threshold exemption: capital gains are not taxable where the aggregate sale prices of all taxable asset disposals in a given tax year do not exceed €1,000.

For non-resident sellers, Finnish capital gains tax applies to disposals of Finnish real estate and to transfers of shares in Finnish housing limited companies, other limited companies, or cooperatives whose total assets consist predominantly (more than 50%) of Finnish real estate. This means that selling either a house or an apartment in Finland as a non-resident will in most cases still attract a Finnish tax liability. Non-resident individuals should report any capital gains or losses arising from the sale of real estate situated in Finland, or from the sale of an apartment (i.e. shares in a Finnish housing company), through MyTax or on the appropriate paper form.

Are there other taxes or costs involved in selling property in Finland?

Transfer tax in Finland is ordinarily the buyer’s responsibility, but sellers should still be familiar with it as part of the wider transaction picture. The rate is 3% of the purchase price for real estate and 1.5% for securities other than housing company shares. For shares in housing companies, the rate is 1.5% as of 1 January 2024. Always confirm the current applicable rates with the Finnish Tax Administration.

Estate agent commission represents one of the most significant outgoings for the seller. The fee varies according to the type of property and generally falls in the range of 3% to 4% of the sale price for a detached house (inclusive of 24% VAT) or around 5% for an apartment (inclusive of 24% VAT). The commission is customarily paid by the seller. Note that VAT rates may have changed since these figures were published — confirm the current position with your chosen agent. The Brokerage Act does not impose a ceiling on commission, but it does require that any fee be reasonable in light of the nature of the instruction and the work involved.

Notary and legal fees are also a consideration. A notary (or public purchase witness) must be present at the conclusion of any real estate sale in Finland. The approximate cost of notary services is €200–500 (as of 2025; verify current figures with a licensed notary or lawyer). Sellers who instruct a lawyer to draft documents and carry out due diligence will incur additional legal fees on top of this.

Property owners in Finland are also liable for an annual property tax throughout the period of ownership. This tax varies by municipality, typically ranging from 0.93% to 2.00% of the property’s taxable value, with bills issued each August. Although it is not a sale-specific charge, sellers should ensure that any outstanding property tax arrears are cleared before completion takes place. The rate applicable in your municipality can be checked with the relevant local authority or via the Finnish Tax Administration’s website.

What legal requirements must sellers meet in Finland?

Finnish property law places wide-ranging and legally enforceable obligations on sellers, all of which apply regardless of whether you are using an agent. The most fundamental is the statutory disclosure duty. The Code of Real Estate imposes a general obligation to disclose all matters capable of affecting the sale price. The size and physical condition of buildings and structures are cited as examples of information that must be disclosed. Details relating to land use planning, building permits and restrictions, and any liens or other encumbrances on ownership are also specifically identified as required disclosures.

The Environmental Protection Act further requires disclosure of any prior activities on the land and of known waste that may have resulted in contamination of the soil or groundwater. This is especially pertinent in the case of older properties or those situated on land that was previously used for industrial purposes.

Sellers who fail to provide accurate and complete information face serious legal consequences. Misrepresentation can give rise to a liability to repay part of the sale price by way of a price reduction, or the entire sale price if the contract is rescinded. The seller may also be exposed to a claim for damages, and the buyer is entitled to seek cancellation of the transaction where the misrepresentation is material to the sale as a whole.

When selling an apartment within a housing company, a substantial part of the seller’s disclosure duty concerns the financial position and physical condition of the housing company itself. This encompasses disclosure of any outstanding loans held by the company (renovation debt), planned maintenance or renovation works, and the monthly maintenance charges payable by residents.

For sellers of detached houses, the documentation that should be assembled includes: the classification of the property (for example, a single-family dwelling or a holiday home); whether the transaction involves real estate, a share or parcel of real estate, or a building standing on rented land; the zoning status of the area and any building prohibitions; building permits, architectural drawings, and inspection records (particularly where the property is relatively new); and the municipality, district, property identifier, and street address.

Regarding ownership restrictions for non-EU/EEA nationals: while these principally affect buyers, foreign sellers should be aware that purchasing land in Finland is entirely lawful for foreigners, but the process differs considerably depending on nationality. EU and EEA citizens enjoy unrestricted rights to own land, whereas non-EU citizens must obtain specific permits from the Ministry of Defence for each property transaction. If you acquired your property under such a permit, it is worth informing your prospective buyer of this history. The Åland Islands are governed by separate legislation that generally prohibits foreign ownership altogether, so sellers holding property there should seek specialist legal guidance.

Title and mortgage information can be verified through the National Land Survey of Finland, which administers the public Title and Mortgage Register. This register contains details of real estate owners, mortgages, and special rights attaching to real estate. It is maintained by the National Land Survey and is publicly accessible via their website.

How does the exchange and completion process work in Finland?

Finland does not operate a two-stage exchange-then-completion system of the kind familiar to buyers and sellers in Ireland or the United Kingdom. Instead, the signing of the sales agreement (kauppakirja) and the handover of the property usually occur in close succession, often as a single event or within a very short timeframe.

The law requires that the sale of real estate be concluded in written form. The agreement must be executed by both parties and attested by a notary in the presence of all signatories. Any agreement that omits these requirements or is otherwise deficient in its legal content will not be binding.

The person officiating at the signing is known in Finnish law as a kaupanvahvistaja (public purchase witness). The seller executes the final deed of sale in the presence of this official, and for real estate transactions the title must subsequently be registered with the National Land Survey of Finland within six months.

Before the contract of sale is signed, the buyer must have transferred the full purchase amount, less any security deposit already paid (unless instalment terms have been separately agreed). Funds are ordinarily moved through a Finnish bank, and many transactions involve a preliminary agreement accompanied by a deposit payment to secure the property prior to the formal signing ceremony.

For apartments in housing companies, the process is somewhat less involved in that no land registry title transfer is required. Apartments in housing companies constitute movable property, and the new owner must, immediately following the purchase, notify the housing company and have the transaction entered in the company’s share register.

The overall timeframe from an accepted offer through to the completion of a private house sale — including finalising the contract, arranging the purchase witness, and addressing any mortgage redemption — is generally a matter of several weeks to a few months, depending on how well prepared both parties are. Buyers who require mortgage finance may need additional time to put their arrangements in place.

Is property exchange or part-exchange an option in Finland?

Direct property exchanges are uncommon in Finland, though they remain a possibility for sellers with particular requirements. Unlike certain markets where part-exchange schemes are actively promoted by developers or agents, Finland has no broadly established culture of property swapping, and the vast majority of transactions proceed on the basis of a straightforward cash or mortgage-funded sale.

That said, there is no legal bar to two parties reaching a direct agreement to swap properties. Any such arrangement would still need to satisfy all the standard legal formalities: a written sales agreement executed before a purchase witness, full disclosure obligations on the part of both parties, and an appropriate settlement in cash of any difference in value between the two properties.

For foreign sellers, a direct exchange adds considerable complexity, since each transaction must be separately documented and both parties must independently account for their respective tax liabilities, including capital gains. Given how infrequently such arrangements arise in the Finnish market, it is strongly advisable to obtain specialist legal and tax advice from a Finnish-qualified lawyer before proceeding. Suitable professionals can be located through the Finnish Bar Association (Suomen Asianajajaliitto).

What should foreign sellers know about repatriating sale proceeds from Finland?

Finland is a member of both the European Union and the eurozone, and no general currency controls or restrictions on transferring funds out of the country are in place. As an EU member state, Finland is bound by EU rules guaranteeing the free movement of capital, which means that the proceeds of a property sale can in principle be transferred abroad without the need for specific government authorisation.

There are, however, important tax and reporting obligations to consider. As a seller, you must ensure that all Finnish tax liabilities — including any capital gains tax due — are settled at or before the time the proceeds are transferred. Capital gains and losses can be reported to adjust your tax card or prepayments through MyTax immediately following the sale. Non-resident sellers should report their gains to the Finnish Tax Administration and discharge any tax owing before remitting the net proceeds overseas.

Finland’s extensive network of double taxation treaties is directly relevant in this context. Finland maintains such agreements with more than 70 countries, enabling foreign sellers to claim relief for Finnish taxes paid against obligations arising in their country of residence, though the precise terms vary from treaty to treaty. If you have paid capital gains tax in Finland, you may be able to offset this against a corresponding liability in your home country, subject to the provisions of the applicable treaty. It is advisable to take qualified tax advice in both countries before completing the sale.

When moving substantial sums across borders, it is prudent to use a reputable bank or currency transfer specialist capable of offering competitive exchange rates while ensuring full compliance with anti-money laundering rules. Banks and transfer providers will normally ask for documentation evidencing the origin of the funds — your executed sale agreement and tax payment receipts will serve this purpose. Further guidance on reporting requirements for non-residents is available on the Finnish Tax Administration website (vero.fi).

Frequently asked questions about selling property in Finland

How long does the full selling process typically take in Finland, from listing to completion?

The duration depends considerably on the type of property, its location, and prevailing market conditions. Finding a buyer through marketing can take anywhere from a few weeks to several months. Once a buyer is secured, completing the legal formalities — including preparing the kauppakirja, engaging a purchase witness, and managing any mortgage repayment — typically requires a further two to eight weeks. Registering the title with the National Land Survey of Finland may then take an additional two to three months, though this step does not postpone the physical handover of the property.

What happens if the buyer pulls out after the sales agreement is signed?

In Finland, the signed sales agreement (kauppakirja) becomes legally binding on both parties the moment it is executed before a purchase witness. Should the buyer withdraw following signature, they risk forfeiting any deposit they have paid and may be exposed to a claim for damages. The precise ramifications will depend on what the agreement itself provides, which underscores the importance of having a lawyer draft this document with appropriate withdrawal and penalty provisions clearly set out.

Can I sell my Finnish property remotely without being physically present in Finland?

Being physically present in Finland is not a prerequisite for completing a property transaction, making remote sales entirely feasible for foreign sellers. You may appoint a local representative by way of a power of attorney to manage the signing process, document submission, and registration procedures on your behalf. This representative is typically a Finnish lawyer or licensed real estate professional with the relevant expertise to ensure all steps are completed correctly.

Does the two-year primary residence exemption apply if I lived in the property but am now living abroad?

Capital gains arising on the sale of a home are exempt from tax where the seller or their family members have occupied the property as their permanent residence for a continuous period of at least two years during the ownership period. The qualifying criterion is the nature and duration of the occupation, not the seller’s current country of residence. The interaction of this exemption with non-resident status can, however, be nuanced. Consulting the Finnish Tax Administration (vero.fi) or a qualified Finnish tax adviser is recommended to establish your specific entitlement.

Do I need to pay Finnish capital gains tax if I am a non-resident selling a Finnish apartment?

Yes — non-resident sellers are subject to Finnish capital gains tax on disposals of Finnish real estate and on transfers of shares in Finnish housing limited companies or other entities whose assets are predominantly Finnish real estate. This means that selling an apartment (housing company shares) or a house in Finland as a non-resident will generally give rise to a Finnish CGT liability, unless the primary residence exemption is satisfied. You should consult both the Finnish Tax Administration and your home country’s tax authority to understand how any applicable double taxation treaty affects your overall position.

Are there any restrictions on who can buy my property, which might affect how I market it?

Non-EU citizens are required to obtain specific permits from the Ministry of Defence for property transactions involving land or houses. If you are selling a detached house with land, certain prospective buyers may need additional time to obtain this permit — a factor worth incorporating into your planning timeline. Where you are selling an apartment within a housing company (asunto-osakeyhtiö), the buyer acquires shares in a company rather than a direct interest in real estate, and the permit requirement does not apply in that situation.

Do I need an energy performance certificate to sell my property in Finland?

Finland has transposed the EU’s Energy Performance of Buildings Directive into national law, and sellers of most residential properties are obliged to make an energy performance certificate (energiatodistus) available to prospective buyers. The certificate sets out the building’s energy efficiency rating. Limited exceptions apply in the case of certain older or very small buildings. You should confirm the current requirements with the Finnish Ministry of the Environment or a licensed energy assessor before your property is listed for sale.

Is there a property chain risk in Finland similar to what exists in some other markets?

Property chains — where one sale is contingent on another completing at the same time — do occur in Finland as in many other markets. However, because sales agreements become binding on signature and payment is typically confirmed before that point, the likelihood of a chain breaking down at a late stage is somewhat lower than in systems where exchange and completion are separated by a longer interval. Sellers who are simultaneously purchasing another property should work closely with their agent or lawyer to align the timing of both transactions and reduce the risk of disruption.