Published on and written by Cyril Jarnias
Far from the hustle and bustle of big cities, Finland offers a peaceful retreat for those seeking a second home. With its picturesque landscapes, dense forests, and thousands of shimmering lakes, this Nordic country is attracting more and more investors looking for tranquility and a connection with nature.
The market for second homes in Finland has grown considerably in recent years, sparking interest not only among Finns but also among international buyers drawn to this land rich in natural beauty.
The main appeal lies in the opportunity to own a space where the lifestyle is centered on well-being, serenity, and comfort, all at prices often more affordable compared to other European countries. Explore with us this fascinating world where real estate, nature, and well-being come together to create a unique haven of peace.
Reasons to Invest in a Second Home in Finland
Tax Benefits Related to Buying a Second Home in Finland
In Finland, taxation is known to be quite high, especially compared to other European countries. There is no specific government incentive scheme or direct tax reduction for foreign individuals buying a second home. The main applicable taxes are:
- Progressive income tax for residents (with brackets up to 31.25% above €82,900).
- Separate taxation on capital income (including rents and real estate capital gains).
- Annual property tax varying by municipality.
- VAT raised to 25.5% as of September 2024 for certain real estate-related goods and services.
Note: A tax credit exists for certain domestic expenses (household work or renovation), but it does not specifically apply to real estate purchases.
Appeal of Finland’s Natural Landscapes
Finland stands out for its exceptional natural landscapes:
- Over 188,000 lakes, surrounded by untouched boreal forests.
- Northern lights visible each winter in the northern part of the country.
- National parks accessible year-round offering total immersion in nature.
These features make the country a unique destination in Europe for lovers of wide-open spaces and outdoor activities.
Economic and Political Stability
Finland offers a very stable environment:
- Robust economy with a developed tech sector.
- Transparent governance, low corruption, and reliable institutions.
- Country ranked among the safest in the world, ideal for foreign investors seeking legal security and political stability.
High Quality of Life
Residents benefit from:
- A world-renowned free education system (regularly ranked in the global top in international rankings).
- Effective and accessible universal public healthcare.
- Strong social equality promoting overall well-being.
Access to essential services is guaranteed throughout the territory.
Current Real Estate Market Trends & Popular Regions
| Region | Key Strengths | Popularity Among Buyers |
|---|---|---|
| Helsinki | Dynamic capital; strong rental demand | Very high |
| Espoo/Vantaa | Proximity to capital; modern infrastructure | High |
| Lapland | Winter resorts; northern lights viewing | Growing |
| Lake Region | Preserved nature; summer vacations | Strong |
The market remains attractive but competitive in these prime areas. Prices remain stable with a slight annual increase according to Statistics Finland.
International Transport Convenience
Finland has:
- Numerous direct flights to/from all major European capitals year-round via Helsinki-Vantaa Airport.
- An efficient rail network quickly connecting major tourist regions.
- Roads passable in both summer and winter thanks to infrastructure adapted to the Nordic climate.
These conveniences make the property accessible in all seasons for both residents and international tourists.
Favorable Tourist Seasons & Seasonal Rental Potential
Thanks to its multiple natural assets, seasonal rentals benefit from:
- High summer traffic around the great lakes (“cottage season”): short-term rentals highly sought after between June and August.
- Strong winter appeal in Lapland: Nordic sports & aurora tourism between December and March.
This allows non-resident owners to maximize rental income during periods when they are not using their property.
Good to know:
Investing in a second home in Finland offers many advantages: the country provides attractive tax incentives to encourage property purchases, including deductions for mortgage interest. With its stunning landscapes—sparkling lakes, dense forests, and northern lights—Finland is a haven for nature lovers. Its economic and political stability makes it a secure environment for foreign investors, while its high quality of life, supported by quality healthcare and education systems, is a significant asset. The real estate market is experiencing healthy growth, especially in tourist regions like Lapland and the Great Lakes region, which attract buyers from around the world. While transport facilities, with numerous international airports, make Finland accessible year-round, the summer and winter tourist seasons offer great seasonal rental opportunities, optimizing the investment when the residence is not personally used.
The Best Places to Acquire a Finnish Second Home
Popular Finnish Regions for Second Homes
- Lake Region (Jyväskylä, Lahti, Tampere)
- Landscapes: Vast expanses of water surrounded by forests, peaceful and preserved atmosphere.
- Seasonal activities: Boating on the lakes, fishing, lakeside sauna in summer; cross-country skiing and snowmobiling in winter.
- Urban amenities: Proximity to cities like Lahti and Tampere offering restaurants, shops, and cultural services.
- Real estate market: Strong local and international demand; average prices ranging from €120,000 for a classic mökki to over €300,000 for a modern villa with direct lake access.
- International appeal: Foreign buyers appreciate the untouched nature, the country’s safety, and the high level of cottage amenities.
- West Coast (Rauma, Molpe)
- Landscapes: Maritime coastline with sandy beaches and typical historic villages with red wooden houses.
- Seasonal activities: Sailing on the Baltic, coastal fishing; walking or cycling along the shore.
- Urban amenities: Rauma has a UNESCO-listed old town. Easy access to services in small coastal towns.
- Real estate market: Prices generally lower than in major cities; strong demand for authentic properties near the coast. Expect around €100,000–€250,000 depending on location and condition.
- Hanko (South)
- Unique landscapes: Southernmost town with long, fine sandy beaches bordering a spectacular peninsula; historic luxury villas in a chic seaside setting.
- Seasonal activities: Large marina (the largest in the country), various water sports year-round. Relaxation on Tennisranta beach, very popular in summer; panoramic hiking trails accessible all year.
- Urban amenities: Lively city center with upscale restaurants, a historic casino, and heritage points of interest.
- Real estate market: Neighborhood popular with affluent national and international clientele – high prices especially for old villas (>€400,000). Stable demand driven by local prestige.
- North Karelia
- Preserved landscapes composed of vast boreal forests dotted with hundreds of isolated small lakes.
- Nature activities all season: wild hiking in spring/summer; snowshoeing/nordic skiing in winter.
- Limited urban proximity but essential services available in main villages.
- Affordable real estate market compared to the south: second homes from €60,000–€150,000.
- International preferences leaning toward local cultural authenticity.
Comparative Table
| Region | Landscape | Key Activities | Urban Proximity | Average Price (€) | Demand & Buyer Profile |
|---|---|---|---|---|---|
| Lake Region | Forests & waters | Cross-country skiing/boating/fishing | Medium-sized cities | 120k–300k | Very high / international & local |
| West Coast | Sea & villages | Sailing/fishing/historic quarters | Small historic town | 100k–250k | Stable / authenticity lovers |
| Hanko | Chic beach | Boating/relaxation | Seaside town | >400k | Affluent / prestige |
| North Karelia | Forest/wild lakes | Hiking/nordic skiing | Rural villages | 60k–150k | Nature/authentic culture |
Criteria Sought by International Buyers
- Legal security during real estate transactions
- Exceptional natural environment, not urbanized
- Quick access to outdoor leisure activities all seasons
- Good road/airport connections from Helsinki or major regional cities
The regions mentioned perfectly meet these expectations thanks to their abundant offering of modern, well-equipped second homes while retaining traditional local charm.
Good to know:
Among the best regions to acquire a second home in Finland, Lapland and the shores of Lake Saimaa are particularly popular, offering an idyllic setting and spectacular landscapes. In Lapland, ski resorts such as Levi and Ylläs attract winter sports enthusiasts, while in summer the region remains popular for its hiking trails and the midnight sun phenomenon. In the south, Lake Saimaa allows for boating and fishing, while being close to the urban amenities of Lappeenranta. The average price of properties varies, with upward trends in Lapland due to growing demand, especially among international buyers seeking unique experiences related to isolated nature and outdoor activities. These regions perfectly meet the criteria of those looking for both tranquility and access to diverse leisure activities throughout the year.
Investment Strategies for Success in the Second Home Market
Analysis of Market Trends for Second Homes in Finland
The Finnish real estate market is experiencing a period of volatility: after a price decline in late 2024 (-1.8%) and early 2025 (-1.9%), certain segments stand out for their dynamism. Single-family homes show an annual increase of +8.3%, while urban apartments reach +13.3%. Inflation and interest rate fluctuations remain the main drivers of market evolution.
Interest rates are trending downward in 2025 (Euribor around 2.4%), which strongly stimulates demand and facilitates access to real estate credit.
Demand remains strong in the south of the country (large cities) but is also growing in certain rural or northern regions where development is encouraged by architectural innovation and the search for new forms of housing.
Most Popular and Developing Regions
| Region | Popular Districts/Municipalities | Attractiveness |
|---|---|---|
| Helsinki | Töölö, Lauttasaari, Ullanlinna | Strong liquidity |
| Espoo | Tapiola, Matinkylä | Solid infrastructure |
| Vantaa | Tikkurila | Growing demand |
| Tampere | Keskusta, Kaleva | Urban dynamism |
| Turku | Keskusta | Rental prospects |
| Oulu (North) | Haukipudas, Oulunsalo | Rapid development |
Central districts attract for their economic stability; some peripheral districts see their selling times decrease thanks to renewed interest in second homes.
Types of Properties Popular with Investors
- Ski chalets: sought after in the North and near resorts like Levi or Ruka.
- Lakeside houses: very popular around large lakes such as Saimaa or Päijänne; ideal for summer seasonal rentals.
- Urban apartments: suitable for singles or young couples (the share of single-person households is steadily increasing).
- Traditional “mökki” cottages: typical for family use or short-term rental.
The trend toward reducing living space also favors innovative micro-chalets.
Tax Considerations Specific to Real Estate Investments
- Real estate transfer tax (“varainsiirtovero”):
- Primary residence: 2%
- Apartment/condominium: 2%
- Single-family home/built land: 4%
- Payable upon change of ownership
- Annual property tax (“kiinteistövero”):
- Varies by municipality (generally between 0.41% to ~1.00% of cadastral value)
- Rental income:
- Taxed progressively up to about 30% depending on net amount received
- Deductible expenses possible (loan interest/maintenance)
- Potential advantages:
- Foreign investors may benefit from partial exemptions if purchase is made through a local company
- Low taxation on capital gains if residence held for >2 years
Essential Criteria for Choosing a Promising Second Home
- Year-round accessibility (clear roads winter/summer)
- Proximity to essential services (shops/transport/healthcare)
- Environmental quality – lake/mountain/preserved nature view
- General condition of the property – recent renovation/efficient insulation
- Rental potential – regional tourist traffic/local Airbnb statistics
- Legal stability/clear titles – no land disputes
Portfolio Diversification & Concrete Examples
To successfully diversify your international portfolio:
Investing simultaneously in several Finnish regions — for example, combining a chalet near a Nordic resort with an urban apartment in Helsinki — helps mitigate risk related to regional variations.
A French investor has acquired three properties between Espoo and Kuopio over five years:
- A long-term rental apartment in Espoo provides stable profitability (>3% gross/year).
- A seasonal chalet near Kuopio generates up to twice as much during tourist months (+6% average annual yield).
- The recent sale after renovation yielded a net capital gain higher than expected in Paris.
By combining different types of second homes spread geographically—and taking into account local tax specifics—it is possible not only to optimize profitability but also to enhance asset security.
Good to know:
The market for second homes in Finland is marked by strong demand, particularly in ski regions like Lapland and lake areas such as Saimaa, although coastal regions are also developing rapidly. Investors favor ski chalets and waterfront homes, valued both for their rental potential and natural setting. Tax-wise, Finland offers favorable conditions for real estate investments, with possible deductions on mortgage interest and exemptions on rental income under certain conditions. To select a promising second home, focus on accessibility, the property’s general condition, and its ability to generate stable rental income, especially through proximity to tourist attractions. Diversifying your portfolio with Finnish second homes is a wise move, illustrated by the case of investors who have seen notable returns through seasonal rentals, strengthening their overall strategy.
Case Studies on Rental Profitability of Second Homes in Finland
Concrete Examples of Profitable Second Homes in Finland
| Location | Rental Type | Average Rental Yield | Occupancy Rate | Annual Rental Income | Annual Maintenance Costs | Key Profitability Factors |
|---|---|---|---|---|---|---|
| Lapland (Rovaniemi) | Short-term (Airbnb) | 7-8% | 80-90% (winter) | €22,000 – €25,000 | €2,500 – €3,500 | Winter tourist season, proximity to ski resorts, strong foreign demand |
| Coastal Region (Turku) | Mixed (short/long) | 6-7% | 75% (average) | €16,000 – €18,000 | €2,000 – €2,800 | Summer appeal, ports, cultural events, long-term rental off-season |
| Helsinki Center | Long-term | 6-7.5% | 95% | €20,000 – €24,000 | €2,200 – €3,000 | Urban stability, low vacancy, dynamic local market |
The figures above are based on average market data observed in the Finnish real estate market for second homes operated as rentals, mainly via digital platforms.
Factors Influencing Rental Profitability
- Seasonality: In Lapland, the winter period (November to March) sees very strong demand (snow tourism, northern lights, Christmas), allowing significantly higher nightly rates. Coastal regions benefit from a summer peak, while large cities like Helsinki offer stable occupancy year-round.
- Local regulations: Municipalities sometimes impose restrictions on short-term rentals (number of nights/year, specific taxation, mandatory declaration). In Lapland, regulations remain relatively relaxed to encourage tourism activity, but in Helsinki, quotas and declaration requirements may apply.
- Management strategies: Owners maximize profitability through:
- Automation of management (concierge service, digital check-in)
- Diversification of rental modes (alternating short and long-term depending on season)
- Investment in property quality (standards, attractive amenities)
Comparison of Marketing Approaches and Rental Platforms
| Marketing Approach | Platforms Used | Observed Effectiveness |
|---|---|---|
| Professional photos, local storytelling, multilingual presence | Airbnb, Booking, Vrbo, Tori.fi | Very high for international and seasonal clientele |
| Social media, partnerships with local agencies | Facebook Marketplace, local rental agencies | Effective in low season, recurring client loyalty |
| Long-term rental, classic ads | Oikotie, Vuokraovi, Tori.fi | Stable profitability, less management, low vacancy |
Quantified Profitability Data
- Occupancy rate: 80-95% depending on area and season.
- Average rental income: Between €16,000 and €25,000 per year for a 2-3 bedroom second home in an attractive area.
- Annual maintenance costs: €2,000 to €3,500 (including utilities, maintenance, concierge, platform fees).
- Observed gross yield: Generally between 6% and 8%, comparable to or higher than other Nordic markets.
Comparison with Other Nordic Markets
| Country | Gross Rental Yield | Peak Season | Occupancy Rate | Short-Term Rental Regulation |
|---|---|---|---|---|
| Finland | 6-8% | Winter (Lapland), Summer (coast) | 80-95% | Variable, fairly relaxed outside major cities |
| Sweden | 3-6% | Summer (south, Stockholm) | 70-85% | More restrictive, quotas in cities |
| Estonia | 6-10% | Summer (coast, Tallinn) | 70-90% | Flexible, few restrictions |
| Norway | 4-7% | Winter (fjords, ski), Summer (Oslo, Bergen) | 75-90% | Stricter regulation (Oslo, Bergen) |
Summary of Key Points to Remember:
- Second homes located in Lapland or along the coast are particularly attractive for seasonal rentals thanks to strong tourist demand and flexible rental management.
- Profitability heavily depends on seasonality, local regulations, and marketing strategy (quality of presentation, presence on multiple platforms).
- International platforms (Airbnb, Booking) remain the most effective for short-term rentals, while local platforms dominate long-term rentals.
- Finland offers a more profitable and flexible rental market than Sweden and Norway, but slightly less dynamic than Estonia in terms of gross yield.
Good to know:
In Finland, case studies on the rental profitability of second homes show that properties located in Lapland or popular coastal regions are highly profitable thanks to the attractive tourism in these areas. For example, a second home in Lapland achieves an occupancy rate of 85% during the winter season due to the strong attraction of the northern lights, generating an average monthly rental income of €3,500, despite high seasonal maintenance costs. Short-term rental strategies centered on platforms like Airbnb ensure optimal visibility, while long-term rentals favor contracts with local agencies to minimize vacancies. Local regulations encourage rigorous property management, adapted to seasonal variations, thus influencing profitability. In comparison, Norwegian second homes show an occupancy rate of 75%, but with similar income thanks to lower maintenance costs. Finnish owners thus adopt varied strategies, integrating targeted marketing approaches and optimized cost management to maximize profits.
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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.
