Published on and written by Cyril Jarnias
Relocating or placing money in Finland is increasingly appealing to expatriates: political stability, a transparent real estate market, very low corruption, high level of security, exceptional quality of life. However, it is not an “easy” market. The rules are specific, taxation is demanding, access to credit is regulated, and the line between a sound asset investment and a risky project can be thin.
This guide details the workings, advantages, pitfalls, best areas, rules for foreigners, costs, and the use of leverage for real estate investment in Finland, aimed at French-speaking expatriates.
Understanding the Finnish Real Estate Market
The Finnish market is often described as stable, transparent, and well-regulated. Property rights are strongly protected, transactions are documented in a national digital land registry, and disputes are rare. Finland ranks among the least corrupt countries in the world, which translates very concretely into clear procedures and a low risk of scams, even for foreign buyers.
The house price index fell to around 99.5 points in the first quarter of 2025, after a peak of 113.5 in 2022.
Average prices illustrate this duality. For older homes, the average was around €2,600/m² at the end of 2024, while new builds reached nearly €5,000/m². But these national figures mask a much more fragmented reality between the Helsinki region and the rest of the country, major university centers and more rural areas.
A Stable but Demanding Economic Context
Finland is an advanced economy, very open, with a strong technology sector, an effective social system, and solid governance. It is emerging from a double recession in 2023‑2024, with unemployment nearing 10% and households generally indebted, but forecasts anticipate a return to growth of around 1.4% in 2025‑2026. Inflation has fallen back to a low level, around 0.5% in spring 2025, while the European Central Bank has started to lower its rates, which is gradually leading to an easing of credit conditions.
The market has favorable characteristics: no apparent bubble, a correction already made, strong rental demand in major hubs, and prudential regulation of household debt by authorities to avoid excesses.
Where to Invest in Finland as an Expatriate?
The opportunities are not the same in Helsinki, in a university city like Tampere or Turku, or in the lake and mountain regions. The choice of location is the first factor for success.
Helsinki and its Metropolitan Area: Security, Liquidity, High Prices
The capital concentrates the bulk of the country’s economic and political activity. Prices are significantly higher than the national average. In central neighborhoods, they easily exceed €7,000/m², with some premium zones (Kaartinkaupunki, Eira, Ullanlinna, Kruununhaka, Katajanokka) where values can climb significantly higher. Around 2025, the reported average price for the city is around €7,600/m², compared to about €2,600/m² for the entire country for older properties.
Rents follow suit: for a modern three-room apartment of 85 m² in a neighborhood like Kamppi, we’re talking about €510,000 for purchase for an average rent close to €2,000/month. Studios and central two-bedroom apartments often rent for between €800 and €1,200/month. Rental demand is structural there (civil servants, managers, tech sector employees, students, expatriates), with an occupancy rate that can exceed 95%.
In the Helsinki metropolitan area, the cities of Espoo and Vantaa complement the offering. In Espoo, an 80 m² three-room apartment in a sought-after neighborhood like Tapiola costs around €360,000, with a monthly rent of approximately €1,600. Prices per square meter remain high, exceeding €7,000/m² in central Espoo, although slightly lower than in Helsinki, explained by a very high local purchasing power.
For an expatriate looking for a safe, liquid investment with little rental vacancy, these urban areas of the capital and its satellites are safe-haven values, even if gross yields are more modest than in some provincial cities.
Tampere and Turku: University Cities with a Good Risk/Reward Ratio
Tampere, the largest inland city, is an industrial, university, and services hub. Prices are significantly more affordable than in Helsinki, while remaining dynamic. In the center, you find levels around €3,800 to €5,000/m². A three-room, 75 m² apartment with a lake view in Pyynikki can be negotiated for around €310,000, for a rent of about €1,400/month.
Gross yields there are often between 4.5 and 5.5% for long-term rentals, and can climb to 6–7.5% for well-positioned furnished or medium-term rentals.
Turku, the former capital and a major port and university city, shows price levels a notch below: between €3,200 and €4,500/m² in attractive neighborhoods. A renovated 70 m² three-room apartment in Port Arthur can be worth around €290,000, renting for about €1,300/month. Gross yields also hover around 4.4–5.2%, slightly higher by targeting furnished strategies or those oriented towards students/young professionals.
For an expatriate investor, the cities of Tampere and Turku offer an interesting compromise thanks to their sufficiently liquid real estate markets and good depth of rental demand. Their appeal is enhanced by reasonable entry prices and solid prospects for appreciation, driven by infrastructure projects like the tramway, waterfront development, as well as university and technology growth.
Jyväskylä, Oulu, and Secondary Cities: Higher Yield, Different Risk
In some regional cities, notably Jyväskylä, the advertised rental yields are significantly higher. For this city, gross yields can reach 7.4–8.5%, with estimated net returns sometimes between 8 and 9.5% after expenses for well-calibrated strategies. Prices per square meter are lower, often between €2,500 and €3,500/m², which facilitates access to property for expatriates with more limited capital.
Oulu, a major northern city and technology hub, is in a price range of €2,800–€3,800/m², with gross yields around 4.6–5.5%. Demographics are dynamic, but liquidity upon resale remains lower than in the Helsinki area.
This type of market is relevant for profiles willing to accept more volatility and a long investment horizon, in exchange for a more generous current yield. It requires a very detailed analysis of the neighborhood, local job prospects, and public project pipelines.
Second Homes: Lakes, Coast, and Lapland
Finland is also a country of vacation homes: “mökki” by lakes, cabins in Lapland, wooden houses on the Baltic Sea coast. This is a separate segment, more speculative and very seasonal, but promising if the positioning is good.
Overview of price ranges for purchasing a cottage or villa in different regions of Finland.
A classic cottage can start around €120,000. A modern villa with direct water access sometimes exceeds €300,000. Examples: Jyväskylä, Lahti, Tampere.
Prices often moderate, between €100,000 and €250,000. Examples: Rauma and the archipelago.
Values above €400,000 for large historic villas. Examples: Hanko or certain islands.
Lapland (Levi, Ylläs, Ruka, Rovaniemi) has become a hotspot for snow and nature tourism. Well-located cabins there frequently trade between €3,000 and €4,500/m², with high winter occupancy rates (up to 80–90% in some resorts) and annual revenues that can exceed €20,000 for the best properties. But profitability relies on very professional management: maintenance, marketing, managing off-peak periods, regulatory compliance.
For an expatriate, this segment is mainly suitable for those who accept strong seasonality, possibly coupled with personal use of the property, and are able to delegate management to a reliable local operator.
Buying in Finland as a Foreigner: What the Law Allows
Finland does not have a real estate “golden visa”: buying a property does not grant any special residency rights. The rule is clear: real estate investment and the right to reside are two separate processes.
Distinction for EU/EEA and Third-Country Nationals
Citizens of the European Union and the European Economic Area can purchase all types of residential assets freely: apartments, single-family homes, land, second homes, without specific prior authorization, except for special cases like the extremely protected Åland Islands.
Nationals from countries outside the EU/EEA are subject to a more regulated regime. Since 2020, they must apply for a permit from the Ministry of Defence to acquire property with land in sensitive areas: near borders, military installations, strategic sites. This requirement applies notably to single-family homes and land. However, acquiring shares in a “housing company” (the most common apartment model in Finland) or property on leased land is generally exempt from this permit.
Exemptions exist: spouses of Finnish citizens, permanent residents, or persons with dual nationality. The Åland Islands, which enjoy autonomous status, are virtually closed to foreign buyers: to purchase there, one must have specific residency rights.
Non-compliance with building permit rules can lead to the cancellation of the purchase or the obligation to resell the property. It is therefore crucial for a non-European expatriate to consult a Finnish lawyer at the outset of the project to clarify this point.
No Automatic Link to Residency
Buying an apartment in Helsinki or a cabin in Lapland does not grant a long-term visa, permanent residence permit, or accelerated access to citizenship. To live in Finland beyond 90 days, the path is through a residence permit for work, studies, family reunification, or entrepreneurship.
EU/EEA citizens can settle freely, but must register for stays longer than three months and obtain a personal identification number. Non-Europeans must go through a long-stay visa and then a residence permit.
How Does a Real Estate Acquisition Work in Finland?
The transaction process is relatively standardized and secure, but with some specificities to know, especially regarding deposit, offer, and documents.
Key Steps of the Purchase
It all starts with defining the project and spotting properties via local portals (Etuovi, Oikotie) or agencies (Habita, Kiinteistömaailma, OP Koti, RE/MAX Finland, etc.). The viewing is a crucial moment to assess the actual condition, but also to understand the housing company structure, charges, and planned works.
Once the property is identified, the buyer submits a written offer. A Finnish peculiarity: this offer is very binding. If the buyer withdraws without a reason provided for in the contract, they risk losing the deposit paid or having to pay a contractual penalty, often capped at 4% of the sale price. Conversely, a seller who backs out may be forced to pay the advertised penalty.
The initial deposit for an apartment is generally between 3 and 4% of the price at the time of the offer.
Between the offer and the final deed, a due diligence phase opens: verification of the title in the land registry, analysis of the certificate issued by the housing company manager (isännöitsijäntodistus), examination of the housing company’s accounts, renovation funds, past and scheduled works, check for any mortgages, easements, or disputes, technical inspection if necessary.
The signing of the deed of sale often takes place at the buyer’s bank, in the presence of the seller, the real estate agent, and possibly a notary or lawyer. The bank then releases the loan, funds are transferred to the seller, and the transfer of ownership is registered with the national land registry. This registration must occur within a six-month period for the transfer to have full legal validity.
Specificity of Apartments: “Housing Companies”
In Finland, it is very common not to buy a condominium unit in the French sense directly, but shares in a limited housing company (asunto‑osakeyhtiö). These shares grant the exclusive right to occupy a specific apartment in the building. Legally, you own company shares, not the walls themselves.
This has several consequences:
– the transfer tax is lower: 1.5% of the price (excluding any associated debt) for housing company shares, versus 3% for land property (house + land) ;
– the structure of charges depends a lot on the potential debt carried by the company (condominium loans for works): the investor must carefully examine the portion of debt attached to the shares ;
– the maintenance of the building (roof, facades, common pipes, collective heating, etc.) is managed collectively and financed by the company’s charges.
This model is widespread for urban apartments, which also has a positive impact for non-EU/EEA buyers: acquiring shares in a housing company is in principle exempt from the ministerial permit requirement.
Which Professionals to Involve?
Even though the Finnish system is very secure, it is unrealistic to think an expatriate can manage everything alone while remaining abroad.
Accredited agencies (Habita, Kiinteistömaailma, OP Koti, Aktia, Huoneistokeskus, RE/MAX Finland…) provide key services: property valuation, organizing viewings, compliance verification, drafting offers, and bank coordination. Furthermore, several agencies offer multilingual services, a major advantage if you don’t speak Finnish or Swedish.
Consulting a lawyer specialized in real estate law, familiar with international cases, is highly recommended for foreigners: checking contracts, securing the due diligence, verifying permit obligations, tax compliance, drafting suspensive clauses (financing, permits, etc.).
The notary in Finland is primarily a certification officer, attached to the registration services. They authenticate signatures, copies, and participate in the formalization of the transfer, but do not play the role of a “central advisor” as in France. Their fees are modest (well below 1% of the price).
Financing Your Investment: What Banks Expect
Finnish banks (Nordea, OP Group, Danske Bank, Aktia, etc.) are willing to finance expatriates and non-residents, but with strict conditions, especially since the tightening of prudential rules.
Down Payment, Interest Rates, and Guarantees
In practice, financing is most often up to 70 to 80% of the purchase price, or even up to 90% for the best local profiles. For a foreigner, banks frequently require a down payment of 20 to 30%. Common loan terms are around 25 to 30 years, with the possibility to extend to 35 years with some offers.
Interest rates have varied greatly in recent years. Some studies still mention averages of 1.2–1.5% for certain subsidized financing, but for new standard home loans, rates are rather around 3–4% for 20 years, with possible variations between 2 and 5% depending on profile, term, and guarantees.
The financed apartment serves as the main collateral (about 70%). The balance can be covered by a state guarantee (up to 20% of the loan and €60,000), a personal guarantee, or pledging other assets. Without external collateral, a higher personal down payment is usually required.
The state can provide interest support (korkotuki) for certain home loans for young first-time buyers, and a zero-interest bridge loan may exist for some acquisitions, but these tools are mainly aimed at residents’ primary residence purchases, not at an expatriate’s rental investment.
Granting Conditions: Income, Debt, History
Banks carefully examine repayment capacity. The implicit rule is to limit the debt-to-income ratio to between 30 and 40% of monthly income. For a non-resident, a stable annual income, often above €12,000 gross, a long-term contract (ideally permanent), and a clean credit history are expected.
The following are often required:
Financial and administrative documents generally required by lending institutions for reviewing a financing application.
Recent pay slips and employer certificates to justify income stability and level.
Latest tax returns (tax assessment notices) to verify consistency of declared income.
Bank account statements for the last 3 to 6 months to analyze financial flows and budget management.
Financial statements to provide if the purchase is made through a company (real estate company, business, etc.).
For an expatriate, sometimes a credit history (credit report) from their country of origin.
The Finnish personal identification number (henkilötunnus) is almost indispensable for opening a local account, contracting a loan, and registering the transaction with the administration. Non-residents can obtain it via the registry offices (Maistraatti) with their official documents.
For expatriates who already own assets in France, another possible strategy is to apply for a home equity loan from a French bank, using a property located in France as collateral. Some banks will lend up to 70% of the market value of this property, and the liquidity released can be used to finance the purchase in Finland without going through a local bank.
Acquisition Costs and Taxation: What You’ll Really Pay
Investing in Finland involves mastering three categories of costs: acquisition fees, annual taxation, and taxation on income and capital gains.
At Purchase: Transfer Tax, Fees, Inspections
The transfer tax (varainsiirtovero) is the major element. It is payable by the buyer and must be self-reported quickly after the purchase. Its rate depends on the nature of the property:
| Type of Property | Taxable Base | Transfer Tax Rate |
|---|---|---|
| Apartment (housing company shares) | Sale price (including debt share) | 1.5 % |
| Single-family home + land | Sale price | 3 % |
First-time buyers of their primary residence can benefit from an exemption subject to age and residency conditions, but this rarely concerns the expatriate investor.
Alongside this tax, notary fees remain modest (a few hundred euros), as do registration fees. However, you need to anticipate:
– agency fees, generally paid by the seller and between 2 and 4% of the price (plus VAT), although in some deals, a portion may fall on the buyer;
– lawyer fees, highly recommended for a foreigner (flat fees or limited percentage);
– certifications and registry extracts (title, mortgage status, housing company certificates);
– a thorough technical inspection (€300 to €800) for older houses and buildings;
– possible sworn translations.
Percentage of the acquisition price representing costs excluding down payment in Belgium, lower than French notary fees.
Annual Taxation: Property Tax and Housing Company Charges
The property tax (kiinteistövero) is levied each year by the municipality, based on a taxable value generally lower than the market value. Rates are set locally, but for homes, they typically range around 0.4–2%.
A simple example: for an apartment with an estimated taxable value of €200,000 in a municipality at 1%, the annual tax would be €2,000. In Helsinki, on a base of €300,000 and a rate close to 1%, the order of magnitude is €3,000/year.
Apartment owners in a housing company must also pay monthly charges (yhtiövastike) covering maintenance, collective heating, management, and possibly repayment of condominium loans. These charges typically vary between €2 and €6/m² per month. For a 50 m² two-room apartment, this means €100 to €300/month, to which exceptional contributions for major works can be added.
Rental Income and Capital Gains: Fairly Heavy Capital Taxation
Rental income from a property located in Finland is taxable in Finland, even for non-residents. Under the standard regime, it is considered capital income, taxed at 30% on an annual base up to €30,000, then 34% above that. Non-residents are often taxed by default at a flat rate of 35% on Finnish-source income, but in some cases they can opt for the progressive regime if it is more favorable.
For an investor, a wide range of expenses are deductible from rental income, thereby reducing the taxable base. Notably deductible are: loan interest (100%), housing company charges, insurance premiums, repair and maintenance work, management fees, and accounting costs. The taxable base therefore corresponds to the net rental income, after deducting these expenses.
In case of resale with a capital gain, the gain is taxed at 30% up to €30,000 and 34% above that. Exemptions exist for a primary residence occupied for at least two consecutive years, but this benefit primarily concerns permanent residents.
Finland has signed double taxation treaties with several countries, including France, Germany, and the United Kingdom. These agreements prevent the same income from being taxed twice. For example, for a French tax resident owning a property in Finland: Finland levies the property tax, and France grants an equivalent tax credit via the imputation method. This mechanism is in line with the renewed treaty signed between the two countries in 2023.
Numerical Example of Return
Let’s take a simple case: an expatriate buys an apartment for €250,000 in Turku in a housing company, financed with an 80% loan at 3.5% over 25 years.
– Gross annual rent: €14,400 (€1,200/month).
– Housing company charges: €3,000/year.
– Property tax: €1,500/year.
– Loan interest first year: approximately €7,000.
– Other expenses (insurance, minor repairs, management): €1,000.
The net rental income before tax would be around €2,900 (14,400 – 3,000 – 1,500 – 7,000 – 1,000). On this base, Finnish tax at 30% would represent about €870, leaving a net cash flow after tax of approximately €2,030/year, a little over 0.8% net yield on the property value, but a much higher return on equity if the initial down payment was €50,000 (i.e., over 4% on equity, excluding principal repayment and potential appreciation).
This type of calculation illustrates the role of leverage: as long as the net yield (before interest) exceeds the cost of debt, the credit improves the profitability of the invested equity, provided rental vacancy and rising charges are well managed.
Choosing Your Investment Type: Long-Term, Furnished, Seasonal
Finland offers several exploitation models, each with its own regulatory, tax, and operational constraints.
Long-Term Rental: The Simplest Foundation
Nearly 30% of Finns live in rental housing, and rental demand is strong in all major university cities (Helsinki, Espoo, Tampere, Turku, Oulu, Jyväskylä). Unfurnished or furnished annual rental remains the simplest strategy, with regulations favorable to tenant rights (well-defined contracts, strict procedures for termination or eviction), but clear for owners.
Gross yields average around 3.5–5% in large centers, and can exceed 6% in some regional cities with higher yields. The advantage for an expatriate is minimizing tenant turnover and the relative ease of delegating management to a local agency.
Furnished Medium-Term Rental: Students, Young Professionals, Expatriates
Major university cities are a prime ground for 6 to 12-month leases targeting students, researchers, international interns, or expatriates on assignment. Unit rents are higher than for unfurnished rentals, while remaining within the framework of “classic” rental (not considered tourist accommodation).
This mode of operation allows for increased gross yield but requires investment in furniture and more active management. The generated income is subject to income tax as capital income.
Short-Term Seasonal Rental: A Tightening Framework
Short-term rentals via platforms like Airbnb are allowed, but Finland is moving towards stricter regulation. A major reform envisions a national limit of around 90 days per year for short-term rentals in purely investment properties (where the owner does not reside), with the possibility for some municipalities to raise this ceiling to 180 days under conditions. Stays longer than four weeks would be considered classic leases and exempt from this quota.
Major Finnish cities, like Helsinki, now impose a municipal permit for professional short-term rental hosts, with controls and fines that can reach several thousand euros for non-declaration. Furthermore, housing companies have the right to prohibit or restrict this activity through their bylaws.
For the expatriate investor, this model is therefore reserved for those who accept this regulatory uncertainty, have very good local connections (manager, lawyer), and know that rules could tighten further.
Leverage: When Borrowing Becomes an Asset (and a Risk)
Mortgage loans are widely used in Finland, and leverage can be a powerful tool for building wealth. But in a country marked by a strong culture of financial prudence and already indebted households, authorities have imposed strict limits: debt ratios, LTV caps, control of loan terms.
Leverage is beneficial when the net rental yield (before interest) exceeds the average annual cost of the loan, thereby increasing the return on equity. It is essential to ensure that the loan interest rate remains below the economic yield of the property. Beware, this effect can reverse and amplify losses in case of significant vacancy, rising charges, or falling rents.
Reasonable strategies involve:
– prioritizing properties in areas of structurally strong demand (Helsinki, Espoo, Tampere, Turku, Oulu);
– aiming for a gross yield of at least 4.5–5% when the cost of debt is around 3–4%;
– maintaining a cash safety margin to absorb a few months of vacancy or a rise in charges;
– negotiating fixed or capped rate loans to limit the risk of a sudden interest rate hike.
The good news for expatriates is the recent trend of falling key interest rates in Europe, which paves the way for once again attractive financing conditions, even if Finnish banks remain selective and attached to income stability.
Advantages and Limitations of Finland for an Expatriate Investor
This overview would be incomplete without frankly weighing the strengths and weaknesses of the Finnish market for a non-resident.
What Makes Finland a Good Market for Expatriates
The primary asset is legal security: secure property rights, comprehensive land registries, low corruption, rare fraud. For an expatriate unfamiliar with the language or customs, this transparency considerably reduces risk.
Economic and political stability, high standard of living, low crime, quality of the education and healthcare systems contribute to the resilience of residential demand, even during economic slowdowns.
The market is open to foreigners, without property quotas, no residency requirement, and with identical acquisition rules for locals and non-locals, except for permits targeting a few sensitive areas.
This is the competitive gross rental yield rate in good locations in major French cities.
Finally, taxation, although heavy on capital income, remains readable, digitized, and linked to a dense network of international treaties avoiding double taxation.
What Can Hinder or Penalize a Foreign Investor
In return, Finland is not a paradise for real estate tax optimization. Rental income and capital gains are taxed at high rates (30–34%), property transfers bear an immediate tax (1.5% or 3%), and the property tax can represent around 1% of the taxable value per year in large cities.
The cost of living and services is high, which impacts maintenance costs, works, and management fees, thereby reducing the net margin. Furthermore, credit regulation is rigorous, with strict debt ceilings and higher down payment requirements for non-residents.
The recent economic climate has also shown that the market can turn: a nearly 7.8% drop in the price index over one year at the peak of the correction, then stabilization. An investor who is over-leveraged or positioned in a low-liquidity area (rural, far from employment hubs) can get trapped in case of a forced sale.
Finally, the regulatory environment for short-term rentals and, more broadly, for purchases by foreigners is tightening, especially for certain third-country profiles, with increased scrutiny of funding sources.
How to Build a Coherent Investment Strategy in Finland?
For an expatriate, the challenge is to leverage the strengths of the Finnish market without underestimating its specificities.
A prudent approach consists of:
For a successful rental investment in Finland, primarily target large urban areas like Helsinki-Espoo-Vantaa, Tampere, Turku, Oulu, and Jyväskylä. Prioritize highly liquid properties (studios, 2-3 room apartments) located near transport, universities, and employment hubs. Accept moderate gross yields in regional capitals in exchange for greater security and liquidity. Surround yourself with an accredited local agency and a lawyer specialized in international transactions. Secure regulatory aspects from the start, notably permits for non-EU nationals, housing company rules, and restrictions on short-term rentals. Finally, equip yourself to accurately track taxation, including filings with the Finnish tax administration and interactions with your resident country’s tax system via double taxation treaties.
In parallel, some profiles may consider allocating a more speculative portion of their portfolio to regional cities like Jyväskylä or to tourist residences in Lapland, accepting more volatility and relying on professional managers for operation.
Ultimately, investing in real estate in Finland is not something to be improvised, but for an expatriate willing to play the long game, respect a clear regulatory framework, and work with serious local players, the country offers a rare cocktail in Europe: stability, transparency, security and exposure to a solid residential market, in one of the world’s most advanced socio-economic environments.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
