If Finland has won you over with its nature, high standards of living, and well-built houses and apartments, you may want to purchase a property of your own. Having a real estate agent on your side is definitely a good idea in an unknown market with unknown procedures, but this guide will help you embark on your journey of becoming a homeowner in Finland!
Start with the legal requirements
Especially with properties, non-EU and non-EEA citizens generally need to obtain permission from the Ministry of Defence to buy real estate, especially if there are military zones, critical infrastructure or other sensitive areas nearby. Buying an apartment is often more straightforward than buying a property, and the legal requirements are less strict.
You should also be prepared to hand in documents like proof of identity, proof of income, and sometimes a Finnish personal identity number. If you are moving permanently to Finland, the latter is needed in any case, so getting that sorted out should be on top of your list. All those documents are needed to prevent money laundering, and to guarantee the national safety of the Finns.
Cultural and market insights
Understanding the local real estate market trends can help in making an informed decision. Spend some time to gather knowledge on the price range of certain types of apartments and properties, and compare those of different areas. By looking at the average price per square metre you will soon find the most popular areas, so balance your budget and true needs accordingly.
When it comes to rural properties, the prices may vary wildly. The more rural the surroundings, the more work is often required on the property, especially in the winter months. However, if it is the peace and quiet you are looking for, you might find some true gems outside the major cities!
Practical steps
Once you have scouted the perfect home or holiday home, the best way to start is to approach the real estate agent responsible for selling it. Asking a lot of questions is not a sign of unpreparedness, quite the opposite! It is the real estate agent’s job to give you all the information you would need to make a purchase of a lifetime. They will help you navigate the process smoothly and tell you what happens next.
When making an offer on an interesting property, it is advisable to have the funding sorted already. If the seller accepts your offer, you will then proceed to the inspections, which is the best way to avoid problems in the future. A condition inspection is highly recommended and it is often paid 50-50 by the seller and the buyer. An unbiased inspector will go through the property thoroughly to discover any hidden defects or issues, and every finding will be documented.
Financial considerations
If you have enough savings to purchase a property straight away, the proof of income is definitely required. Presenting your account statements over a certain period of time, or a signed document about your savings plan from your bank should be sufficient. In most cases, getting a mortgage in a Finnish bank is possible, but before applying for a mortgage you will need to have a Finnish bank account (and sometimes a Finnish id number too).
The purchase cost of the property or apartment is not the only cost of becoming a homeowner: The buyer must also pay the transfer tax, which is 3% of the purchase price in real estate and buildings, 1.5% in apartments. The transfer tax is self-assessed and self-reported. Property tax is paid annually, which you must take care of yourself as a property or real estate owner. With apartments it is somewhat easier since the property tax is divided between all apartment owners in the same housing complex, and collected as part of the charge for common expenses monthly.
Read more about the taxes here.
Other legal fees are, for example, the bank’s administrative charge for taking care of the change of ownership and mortgage bonds.
Start your search with us
If you feel overwhelmed with all the legislation and regulations, it might be a good idea to contact us and simply tell us what you have in mind. Our experts have knowledge of properties and apartments far and wide, and you will have your personal real estate agent helping you out. The best part? It won’t cost you anything! If we find you the perfect apartment or property, the seller is responsible for paying our commission.
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