Finland maintains an open real estate market, and non-residents generally enjoy the same rights to buy, own, and sell property as Finnish citizens. However, the process is highly digitized and regulated, requiring strict adherence to Finnish tax protocols and national land registration standards when Selling Property in Finland as a Non-Resident.
1. The Legal and Regulatory Framework
Finland has modernized its real estate transaction process, allowing for both digital and traditional methods.
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Property Transaction Service: The most efficient way to sell is through the National Land Survey’s (Maanmittauslaitos) Property Transaction Service. This digital platform allows you to create and sign the deed of sale electronically, which removes the need for a physical “public purchase witness”.
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Traditional Transactions: If you cannot use the digital service, you must sign a paper deed of sale in the presence of an official public purchase witness to verify the transaction.
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Due Diligence: The buyer is responsible for verifying the property’s status. They will typically request a Certificate of Title (up-to-date owner information), a Certificate of Encumbrances (to ensure no unpaid mortgages or liens), and a Cadastral Register Extract (for access rights/restrictions).
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Disclosure Duty: As the seller, you are legally required to notify the buyer of any known defects in the property. Failure to disclose known issues can leave you liable for compensation claims after the sale.
2. Required Documentation
To ensure a smooth closing, prepare the following items in advance:
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Official Property Extracts: Order the latest Certificate of Title, Certificate of Encumbrances, and Cadastral Register extract from the National Land Survey.
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Identification: A valid passport or official ID. If you have a Finnish personal identity code, it simplifies the digital registration process.
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Mortgage Documents: If there are existing mortgages on the property, coordinate with your bank to amortize or transfer them to the buyer as part of the transaction.
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Energy Certificates/Building Permits: If selling a house, provide all relevant building permits and technical reports to the buyer.
3. Financial Considerations
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Capital Gains Tax: Generally, capital gains are taxed as capital income at 30% for gains up to €30,000, and 34% for any amount exceeding that threshold.
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Note: If you have used the property as your (or your family’s) permanent home for a continuous period of at least two years during your ownership, the sale may be tax-exempt.
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Transaction Costs:
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Real Estate Agent Commission: Fees are usually paid by the seller and vary by agency.
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Transfer Tax: While the buyer typically pays the transfer tax (currently 4% for real estate), clarify all fee responsibilities in your brokerage agreement.
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Reporting: You must declare the sale in MyTax (Vero.fi). If you do not arrange for prepayments during the year of the sale, you may be subject to back taxes and late payment interest.
4. Preparing for Sale: A Checklist
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Appoint an Agent: While not mandatory, using a professional agent is common. Ensure they follow the Code of Conduct in Real Estate for security and reliability.
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Digital Access: Ensure you have your credentials ready for the MyTax service and, if possible, Finnish online banking credentials (or mobile ID), which are often required for digital signatures in the Property Transaction Service.
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Financial Preparation: If you anticipate a capital gain, use the MyTax service to request a new tax card or calculate prepayments early in 2026 to avoid late payment interest.
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Clear Mortgages: Check with your bank well before the sale to ensure all mortgage deeds are ready to be transferred or cancelled.
Disclaimer: This guide is for informational purposes. Finnish tax and property laws can be complex, especially for non-residents. Always consult with a qualified local real estate attorney or the Finnish Tax Administration (Vero) regarding your specific situation before finalizing a sale.
Are you currently in the early stages of preparing your property for the market, or are you seeking assistance with understanding how to access the Finnish digital property systems from abroad?