Property taxes and utility payments in Finland: what do you need to know?

Responsibilities of property owners in Finland

In Finland, property owners are required to pay an annual property tax and utility fees. The final amount that needs to be paid varies depending on many factors, such as location, type of heating system, and the size of the living space. Additionally, an important factor is whether the residence is intended for permanent or temporary living.

Structure of expenses for property maintenance

The expenses for maintaining residential premises are made up of various utility payments and possible credit obligations to housing joint-stock companies (HJSC). The list of utility services includes:

• heating expenses;
• water supply;
• services for the maintenance of common property;
• minor repairs
• accounting and home management;
• annual property tax;
• insurance;
• payment for cleaning of common areas.

Loans and financial obligations of the owners

The homeowners' association often takes out loans for the construction of new facilities or for major repairs. In such cases, apartment owners are required to make monthly contributions to repay the debt in equal parts. Additionally, it is possible to pay off the entire loan amount at once, but this requires special documentation and approval.

The economic situation and its impact on interest rates

As of now, in 2023, interest rates on loans from housing companies continue to rise against the backdrop of economic instability and falling housing prices. In most cases, these loans have a variable interest rate, which increases the financial burden on homeowners. Therefore, it is important to clarify all current debts and planned repair work in advance to avoid unexpected financial costs.

Responsibilities of private homeowners and summer cottage owners

Owners of private houses and summer cottages are responsible for all their financial obligations on their own. This includes:

• payment for heating;
• water supply;
• sewerage
• insurance;
• taxes.

The tax amount is set by local tax authorities and depends on the area of the land plot and the buildings on it. Additionally, owners of private homes may be required to contribute funds for the maintenance of the roads leading to their properties, along with paying for garbage collection.

The obligation to pay property taxes

Property taxes in FinlandThey are mandatory and must be paid by all owners, regardless of their citizenship and place of residence. It is important to note that property tax is paid at the beginning of each calendar year. Therefore, even if the property was sold on January 2nd, the tax obligation falls on the previous owner who owned it on January 1st, and only after that does the transfer of ownership take place. This means that owners need to be careful when planning their finances and take such nuances into account to avoid unpleasant surprises.

Results and financial planning

The summary of housing financing and tax payments is an integral part of the responsibilities of property owners in Finland, making budget planning an essential aspect of life for every resident of the country.

Acquisition of real estate in Finland

Purchasing a home in Finland is a significant undertaking that should be approached with due seriousness. It is important to note that the residential property tax is already included in the monthly utility expenses, which simplifies the payment process. Each year, a tax is levied on residential properties registered as the primary residence, which varies from0.41%from the cadastral valuation of residential property. Owners of summer houses, known as"leisure properties"must pay a tax that ranges from0.93%to2%The assessment of cadastral value and the calculation of tax are carried out by the tax authorities of the local administration.

Tax obligations when purchasing real estate

When you decide to purchase a property, your real estate agent will be able to provide you with up-to-date information on the tax amount for a specific property for the current year. If you have a plot of land where construction is planned, the tax will amount to2%to6%From the cadastral value. After the construction is completed, it will be necessary to pay taxes on both the land plot and the constructed building in accordance with local regulations and rules.

Nuances of the tax system

It is also worth noting that the tax system in Finland has specific nuances that can vary depending on the location and type of property. Foreign citizens who own property in this country must take into account a number of tax obligations related to its operation and maintenance.

Real estate market offers

Finland offers a variety of options in the real estate market. For example:

• Imartes:An apartment is for sale for35,000 euros, with an area of49 square metersA two-room apartment located in the city center. Online viewings are available, and transactions can be conducted remotely using a power of attorney. The direct sale from the owner is carried out with full support and no commission for the buyer.
• Nurmess:A three-room apartment is for sale at the price of23,000 eurosIts area is76 m²and it is located on the first floor. The apartment has a good layout and a glazed balcony. The building it is in was constructed inin 1969and connected to the district heating system. Recently, the water supply system and windows were replaced.
• Kaitel:You can buy a two-bedroom townhouse with an area of58 square meterswith a magnificent view of the lake for just19,500 eurosSpacious and bright rooms make this property option particularly attractive. The townhouse is built inin 1976and with2021actively uses geothermal heating.
• Helsinki:Apartments are offered with an area of41 square metersfor279,000 eurosFor more detailed information about this property, you can contact a representative of Habita.

Conclusion

Thus, purchasing real estate in Finland represents an interesting and potentially profitable investment, especially if one familiarizes themselves with all the important aspects of the process in advance and considers possible nuances.

Real estate in Finland from Habita International Estates Ltd

Habita International Estates Ltd offers a variety of attractive real estate options in Finland. Among them is, for example, an elegant apartment in Espoo, which measures 126 square meters and is available for 399,000 euros. This apartment is equipped with everything necessary for comfortable living, and for more detailed information, it is advisable to contact a company representative.

Budget proposals

Additionally, more budget-friendly options can be found, such as an apartment in Jaanekoski with an area of 67 square meters, priced at just 19,000 euros. This cozy option has two bedrooms and is located on the second floor with an elevator. The purchasing process can be carried out without physical presence by using a power of attorney, which greatly simplifies life for buyers. The spacious kitchen has recently undergone renovation, and the apartment features a pleasant glazed balcony with views of the sports fields.

Compact housing

If you are interested in compact housing, take a look at the townhouse in Kauhava, which has an area of 60 square meters and is priced at 16,000 euros. This two-room apartment is located near essential amenities in the center of Kortesjärvi. There is also an adjacent plot with a beautiful parking area. The apartment has plenty of storage space, including a separate wardrobe and two outdoor storage rooms.

Townhouses and one-bedroom apartments

Another interesting option is a townhouse in Luhanka with an area of 48 square meters for 19,000 euros. This two-room apartment is in good condition and is also available for remote buyers. It comes with garden furniture and equipment, as well as access to a private garden where you can enjoy some time outdoors.

Another offer is a one-room apartment in Kouvola with an area of 32 square meters, which is for sale for 21,837 euros. It is located on the second floor of a building constructed in 1972. The apartment is equipped with modern gas heating systems, and the pipes and windows have been updated. Please note that the price includes an installment plan for the completed renovation work.

Cozy apartments

You can also consider an apartment in Riihimäki with an area of 33 square meters priced at 25,000 euros, located on the third floor of a building with an elevator. This apartment features a well-thought-out layout that allows for even a small dining table in the kitchen. The floors and walls are in good condition, creating a positive first impression.

More spacious options

If you're looking for more space, check out the 72 square meter apartment in Porvoo, which is priced at 198,000 euros. For more information, it's best to contact a representative from Habita.

Temporary or permanent residence

For those considering the possibility of temporary or permanent residence in Tampere, it's worth noting the apartments with an area of 50 square meters priced at 162,000 euros. As with other options, it is recommended to contact a representative directly for all the details.

Conclusion

Don't miss your chance to become a property owner in one of the most picturesque regions of Finland. The apartments and houses offered by Habita are perfect for both living and investment purposes. The opportunity to finalize the deal is presented in the most convenient format.

Attention to the real estate market in Finland: offers from Habita International Estates Ltd.

Habita International Estates Ltd. offers a variety of interesting options for purchasing housing in Finland. In the center of the city of Kotka, there are charming apartments with an area of 65 square meters, priced at 67,000 euros. This two-room apartment features a comfortable atmosphere and would be an ideal place to live. If you are interested in this offer, it is recommended to contact the company's specialists for detailed information.

Helsinki and the conditions for buying property

Helsinki, as the capital of Finland, also attracts the attention of buyers. We have information about apartments with an area of 43 square meters that can be purchased for just 208,000 euros. Living in this magnificent city will provide you with many pleasant moments, and for more detailed information, it is also worth contacting a Habita agent.

Available options in Kotka

Kotka offers even more affordable options, such as a two-room apartment with an area of 56 square meters, priced at just 29,900 euros. These advantageous conditions will make life in Finland more accessible and attractive for everyone interested. By contacting the representatives of Habita, you can learn all the important details that will help you make an informed decision.

Apartments in other cities

In addition, we have information about apartments in Lahti that can be purchased for 105,000 euros. The area of this apartment is 58 square meters. Don't miss the chance to get more information about this offer so you don't miss a unique opportunity in one of the largest cities in Finland. There are also options in Kerava, where you can buy a property with an area of 49 square meters for 149,000 euros. Feel free to ask your questions and get answers from the agents.

Offers in Vantaa

In Vantaa, there are also apartments available for 145,000 euros, with an area of 44 square meters. Here, you can enjoy all the benefits of living in this modern Finnish city. There are interesting offers in Lahti as well: an apartment for 14,900 euros with an area of 58 square meters. Be sure to clarify all the information regarding the necessary documents and other details.

Requirements for more spacious options

For those looking for something more spacious, it's worth considering a townhouse in Hirvensalmi with an area of 61 square meters, priced at 24,000 euros. This property can be arranged remotely, which makes it particularly appealing. The building is already equipped with geothermal heating, which will be quite handy during the winter months. From the spacious living room, there is access to a quiet and green courtyard — this adds comfort and tranquility to your home.

Utility costs in Finland

Regarding utility expenses, it's important to remember that they account for a significant part of life in Finnish apartment buildings. These fees can vary depending on many factors, such as:

• Property area
• The nature of buildings
• Region of residence

The total amount of contributions is usually determined at the annual meetings of the owners and can vary depending on needs. On average, the cost of utilities is approximately7 euros per square meter.

Don't forget that property owners in Finland face various expenses, including road maintenance fees, which amount to about100 euros a yearRecently, calculations were conducted that showed that owners of new apartments may spend more1000 euros per monthfor the maintenance of your housing. These factors must be taken into account when making a decision to purchase real estate in this amazing country.

Utility costs in Finland

In Finland, apartment owners face numerous expenses, including fees for the maintenance of common areas and various utility services. The most significant of these expenses is the payment for electricity, which is billed based on meter readings, imposing certain constraints on family budgets. Electricity rates vary depending on the provider, leading to substantial differences in financial obligations.

For example, a family of two living in a 40 square meter apartment can spend between 40 to 65 euros on electricity each month. It is worth noting that the total electricity costs often depend on the availability of central heating: in multi-story buildings, it is usually connected, while in rural areas, electric heating devices are often used.

Heating and hot water

If there is no central heating, water is usually heated using boilers, while electric radiators are used for heating. This leads to a significant increase in electricity bills. Modern residential buildings are often equipped with the latest heating and ventilation systems with heat recovery functions, which allows for substantial savings—up to 65% energy compared to conventional electric heating methods. In homes with such systems, heating costs are about 1 euro per square meter for permanent residence.

Water supply

Regarding water supply, the bills from housing management organizations separately highlight the amounts for water, which are calculated based on the number of residents in the apartment. Previously, housing organizations were not required to install meters, and calculations were made without taking them into account. However, since November 2020, the Finnish parliament has amended the law to require mandatory payment for each cubic meter of water consumed. Typically, a family of three spends about 60 euros a month on water supply.

Autonomous water supply

If a family has its own well, the costs for water supply may be absent. In this case, it will be necessary to cover the expenses for waste disposal, which includes sewage and septic tank cleaning. In homes with autonomous water supply, it is recommended to call specialists for sewage pumping approximately once a month, with the cost of such a service starting from 70 euros. With modern local sewage systems, the need for septic tank cleaning arises only once a year.

Real estate selection

When purchasing real estate in Finland, it is important to carefully evaluate the type of heating system, as a significant portion of utility expenses goes towards heating in the harsh climate. The cost of central heating is fixed both in winter and summer, which also plays a significant role in budget planning. Therefore, before buying a property, it is advisable to thoroughly consider all aspects related to utility expenses to avoid unforeseen financial costs in the future.

Heating expenses in Finland

Heating costs in Finland vary significantly, ranging from about €50 in the summer months to over €100 in the winter period. These rates depend on the expenses associated with the production and distribution processes in the heating system, leading to differences between the services of various utility companies. Homeowners typically choose to heat their homes with stoves or use geothermal heat pumps, which significantly helps them reduce heating expenses.

Mobile communication in Finland

In residential areas like Oulu, mobile communication plays a key role in communication. Major mobile operators such as Telia, DNA, and Elisa operate in the Finnish market. Subscribers can expect to pay around €30 per month for unlimited internet access. When it comes to a dedicated connection with a speed of 100 Mbps in a private apartment, the cost ranges from €30 to €50 per month.

Real estate insurance

It is also worth noting that homeowners in Finland are required to insure their property against various risks, such as fire, hurricane, or other uncontrollable situations. An insurance policy for a house of about 100 square meters can cost around €300 per year. As for insuring apartments in multi-family buildings, while it is not mandatory, it often includes liability protection towards neighbors and the management company.

Introduction

Attractive opportunities are opening up in Finland for those looking to purchase real estate at reasonable prices. We present several interesting options for houses that can be bought with the possibility of remote transactions through a power of attorney.

Proposal in Virrat

The first property is located in the city of Virrat. It offers a house with an area of 70/75 m², built in 1930, for a price of €25,000. The annual tax on this property is only €85. The house includeswood heatingand the kitchen area is equippedrefrigerator,electric stoveandwood-burning stoveThere is alsosaunalocated in the barn, which is an additional advantage.

Real estate in Joensuu

The next option can be found in Joensuu, where a cozy 74 m² home can be purchased for €19,000. This house is located in the Polvijärvi area, conveniently situated in relation to urban amenities. The building has access towater supply...and the heating is implemented both through...electricity, so toofirewoodThe area of the land plot is 2,097 m² and is fully owned by the owner. The building was constructed in 1952.

Object in Seinäjoki

A house is for sale in Seinäjoki for €20,000, with an area ranging from 65 to 100 m², and it requires...repairThe starting price is indicated, and potential buyers are strongly encouraged to make their offers. This residential house was built in the 1960s and is in average condition.

House in Uryal

Uryalya offers buyers a house measuring 72 m² for a price of €19,000. This property is suitable forpermanent residence, as well as forrestThe housing includeskitchen,living room,bedroom,dressing roomandtoiletand alsoelectric saunaIn the kitchen, there is a setup.wood stovethat creates a cozy atmosphere.

Charming house in Myanttya

A charming log cabin in Mäntttä is for sale for €24,000, with an area of 89/101 m². The plot size reaches 5,780 m², and in recent years, the house has been used as a vacation home. This property stands out with its stylish...with paneling, which makes it particularly attractive to buyers.

House in Kouvola

In conclusion to our review, it's worth mentioning a house in Kouvola that can be purchased for just €10,000, with an area of 66 m². This living space was built in 1960 but needs some work.capital repairsThis building has a problem withwater leakdue to a damaged pipe (as of 01/2024). Inside you will finda covered veranda, which leads tobathroomandsaunaand also in residential premises.

Remote transaction processing

All the listed types of real estate allow for remote transactions, which frees buyers from the need to be physically present when purchasing a home. This simplifies the process of buying property in Finland, making it more convenient and accessible for foreign clients. It is important to keep in mind the legal nuances associated with purchasing real estate abroad and to consult a qualified lawyer if necessary.

Real estate in Finland from VIPCON LKV

In Finland, enticing real estate options are emerging from the company VIPCON LKV. For example, in the Seinäjoki area, a house with a total area of 87 m² is up for sale, with a starting price of just €15,000. This makes it accessible to a wide range of buyers. The plot on which the house is located is extremely spacious, reaching 11,117 m².

Inside the house, there are four rooms, a kitchen, a bathroom, and an electric sauna. The property also has a bathhouse and plenty of space for outdoor activities.Real estate purchases can be made remotely through a power of attorney....which significantly simplifies the process for those who cannot be present at the transaction.

Proposal in Youtseno

Another interesting offer can be found in Youtseno, where a 100 m² house built in 1920 is for sale. This building requires major repairs or demolition, but the price is only €10,000, making it an attractive option.

• Area of the plot: 1,825 m².
• Annual tax: 240 euros.

There is also a small bathhouse on the land plot.The option of remote transaction processing makes this option even more convenient for buyers.

House in Kuusankoski

It is also worth noting the house in Kuusankoski, which can be purchased for €24,000. It has an area of 80 m² and was built in 1950. The plot around the house is 1,200 m².

Inside the house, there are three rooms, a kitchen, and a bathroom with a shower. The second floor has a bedroom.This house has also undergone some updates.Therefore, it may interest many potential owners.

Real estate in Porvoo

Among the higher price categories, there is a house in Porvoo available for €169,000. This property covers an area of 105 m² and includes five rooms and three bathrooms. For more detailed information about the property, it is recommended to contact the Habita agency, which offers a variety of real estate for sale in Finland.

In Porvoo, you can also find:

• A cottage priced at €139,000 with an area of 35 m² (suitable for a small family or as a vacation home).
• Another house priced at €169,000 and covering an area of 110 m², featuring four rooms and three bathrooms.

There is also an interesting house in Loviisa that can be purchased for €49,000, with an area of 64 m², offering a comfortable layout.

Housing in Yoroinen

Don't miss the chance to become a homeowner in Yoroinen, where a house is offered for €25,000. The area of this property is 70 m², and the plot is 1,112 m². The house has already undergone some updates, including a roof replacement and insulation on the upper floor.

Remote sales are also available here....which makes shopping convenient for people from other cities or countries.

Choice in Sastamala

In Sastamala, there is also a small house for sale for €19,000, with an area of just 30 m², complemented by outbuildings. The plot covers 970 m² and includes an old well, although the water quality has not been tested.

Such offers provide great opportunities for those looking to buy property in Finland.The ability to complete transactions remotely greatly simplifies the purchasing process....which makes such real estate very attractive to potential buyers in the current market conditions.

Current issues of water supply and sewage

In today's conditions, issues related to water supply and sewage systems in residential cooperatives are becoming increasingly important. Today, we will focus on several attractive real estate offers in Finland from the company VIPCON LKV.

House in Khuitinen

One interesting alternative is a house in Huitinen, which is offered at a price of19,500 €This object has an area60 square metersand includes two bedrooms, as well as a utility room.

As part of this deal, there is an option for remote processing, which is convenient for buyers who cannot be present in person with a power of attorney. This house is located in close proximity to the city of Eura, which will be an additional advantage for the new owners.

Description of the condition of the house

This house, which needs some improvements, has a land plot area of1500 m²The exterior finishing is already complete, but all necessary repairs need to be done inside. Electric heating and stove heating are provided as heating systems, ensuring comfortable conditions at any time of the year.

House in Lieksa

Another interesting property is a house in Lieksa, offered for12,000 €Building with an area of96 square meterswas erected inin 1962and includes three rooms. The plot of land is2860 m²The apartment itself offers a glazed veranda and an updated entrance door.

The heating system combines electricity and firewood, enhanced by modern technologies in the form of a heat pump.

Payment of utility bills

In addition to convenient real estate offers, it is also important to pay attention to issues related to utility payments in Finland. Typically, property owners receive notifications about bill payments and property taxes through electronic or traditional mail channels, according to the address specified in the documents.

Modern systems allow for payments through online banking, which significantly simplifies the process.

Recommendations for property owners

If the owner is unable to independently monitor the receipt of bills and make the necessary payments, it is recommended to:

• Open an account in a Finnish bank;
• To arrange an agreement for automatic fund withdrawal.

This implies that all mandatory payments will be made automatically, and information about expenses will be sent to the owner.

Issues with bank accounts

In light of recent events, Russians using services from European banks may face account blockages, even if they have residency permits. Difficulties in obtaining visas to visit Finland for the purpose of paying utility bills also create additional problems.

In such a situation, a reasonable solution would be to sign a contract with a management company that will take on the responsibility of maintaining and caring for your property in your absence.

Example of calculating utility payments

As an example of calculating utility payments and taxes, we can consider a house with an area of100 square meterson the plot in10 hundredths of a hectare, the cost of which is115 thousand eurosIn such a property, a family of four can live, which will allow them to spend three months a year in the house, ensuring comfort and coziness during their stay.

Understanding these nuances will significantly help in choosing and maintaining your property in Finland.

Main expenses for property owners in Finland

In this article, we will focus on the key expenses that property owners face in Finland, as well as explore the opportunities for generating income from rental properties. The main cost items include:

• Annual Tax:approximately €280.
• Expenses for garbage collection and road maintenance:about €160.
• Water supply for a family of four:Approximately €60 per month, which amounts to €240 per year.
• Electricity, including heating:can reach €1800.
• Property insurance:about €300.

As a result, the total annual expenses amount to about €2780.

Real estate rental in Finland

As for renting, Finnish legislation provides quite a bit of freedom for foreigners who wish to profit from renting out their property. An important aspect is the requirement to pay income tax, which ranges from 30% to 34% per year. Although this may seem like a high rate, in practice it is quite reasonable. The tax is calculated not on the total income, but taking into account the difference between the rental income received and all associated expenses, including property taxes, utility bills, and other costs.

Rental yield

Currently, rental yields range from 3% to 5%, but in the most sought-after areas, this figure can increase to 8%. Thus, capital preservation appears to be quite reliable, considering the stable state of the real estate market in Finland.

Rental market

The current rental market continues to evolve, and renting out an apartment in populated areas for a long term is not particularly difficult. The rental rates can vary significantly depending on the region. For example:

• In the center of Helsinki, the rent for a three-room apartment can range from €1200 to €2300 per month.
• Similar housing in cities like Lahti, Tampere, or Lappeenranta will cost between €600 and €1000.

The popularity of short-term rentals

Recently, there has been a growing interest in short-term rentals. Property owners are increasingly becoming users of platforms like booking.com or Airbnb, as well as turning to real estate agencies. This significantly increases income, reaching rates of 6% to 10% per year.

A new service for finding a country house

Additionally, a new service called talo maalta has emerged in Finland, aimed at those dreaming of a country house. This service is somewhat similar to the dating app Tinder, helping users find a suitable home in the countryside based on shared interests.

To use the application, it is necessary to create a profile that specifies the criteria and goals for using the country house. Homeowners have the opportunity to describe their properties in detail, and contact between interested parties is established only when there is a match in interests.

Real estate management

For more effective property management, as well as to simplify the process of paying taxes and utility bills, it is best to use the services of a management company. This will ease the rental process and ensure a stable income for owners.

In Finland, short-term rental apartments are not as common as in other European countries, and most of them are primarily located in tourist areas and in the capital, Helsinki. Finding a suitable management company for a lakeside cottage that is not popular with vacationers can be quite a challenging task. In most cases, owners turn to the realtors from whom they purchased their property to get information about reliable management services. Typically, the services of such companies cost around12%from the total rental income. However, if only basic maintenance of the apartment is required without renting it out, it will cost from€50 to €100every month.

Cost of living in Finland

The cost of living in Finland makes it one of the most comfortable yet also one of the most expensive countries on the European continent. However, it's important not to exaggerate the high prices too much: according to the cost of living index ranking by Numbeo, Finland ranks22nd placeamong40 countriesAccording to the Finnish Statistics Office, the average salary of an employee is approaching this year.€3.8 thousandper month before taxes. Seasonal workers and low-skilled employees in the service sector earn the lowest incomes, ranging from€2,000 to €2,900per month. Qualified specialists with certain experience can expect to earn between€3,000 to €4,000monthly.

Job search and earnings

For those interested in job searching in Finland and wanting to learn about earning opportunities, there are many detailed guides available. An important aspect is also getting familiar with the current living costs in the country.

Real estate market

As for the real estate market, it is primarily focused on local buyers in Finland. Interest from foreign investors has noticeably decreased recently, especially among Russians, who were previously active in this market.2014when the ruble fell significantly. However, even the decrease in interest from Russians did not have a serious impact on price levels and demand. Thanks to the country's stable economy, the housing market did not experience sharp changes. For example, in2020Finland quickly emerged from the downturn caused by the pandemic.

Real estate prices

Real estate prices in Finland have been growing quite steadily in recent years — at a level1–3%a year before2022However, in the second half2022The situation has changed: the rise in interest rates, the slowdown in economic growth, and the increase in inflation have led the housing market to face serious difficulties. Thus, the national statistics office reported that...January 2023on the decrease in prices for secondary housing in apartment buildings5.3%compared to the previous year. The quarterly data shows that the decline in prices for old apartments continued, amounting to7.3%on an annual basis. However, it is worth noting that prices for new apartments increased slightly in the second quarter, showing a growth of3.1%Thus, the real estate market continues to be under pressure from various economic circumstances, and homeowners are forced to adapt to changes in prices.

The current situation in the Finnish real estate market

Recently, there has been a slowdown in the Finnish residential real estate market. This trend is similar to the situation in other Nordic countries, which have also felt the negative impact of the global crises that occurred in 2022 and 2023.

Since the fall of 2022, Russian citizens have faced restrictions: they are prohibited from visiting their residential properties in Finland. Entry into the country is granted only to one owner, and this is only possible for carrying out repairs or other necessary work, which must be confirmed by the appropriate documents.

Taxes and financial obligations when selling real estate

Regarding tax obligations when selling real estate, they also have their own specifics. The profit tax on real estate transactions is 30% on income up to €30,000. If the profit exceeds this amount, the tax rate increases to 34%.

When determining profit, owners can take into account various expenses, such as:

• realtor services (excluding VAT);
• capital repairs that significantly increase the value of the property, such as replacing the heating system;
• tax paid upon the acquisition of real estate.

It's interesting that property owners, whose property is not a summer house, are exempt from paying income tax if they have owned it for more than two years and have lived in it on a permanent basis, including family members such as spouses or minor children.

Additional expenses and services of realtors

Additional financial obligations are also important. In Finland, the realtor's services are most often paid for by the seller and amount to about 2-5% of the final transaction amount, plus 24% VAT.

Nevertheless, the parties involved in the transaction have the opportunity to negotiate the commission amount, and if either of them decides to handle the transaction independently, they can avoid these costs. However, to ensure greater confidence, many prefer to turn to real estate professionals.

Choosing a real estateagency

When choosing a real estateagency, it is crucial to ensure that the agency has a license. You can reach out to local Finnish realtors (some of whom offer services in Russian) as well as Russian agents who work with certified partners in Finland.

It is important to remember that certified realtors in Finland are responsible for the transparency of information that may influence the buyer's decision. They are not allowed to receive commissions from both parties – the buyer and the seller – at the same time. Realtors are also required to provide an objective assessment of the market value of the property.

Property tax in Finland

Another important aspect is the property tax, which in Finland ranges from 0.4% to 6% of the cadastral value of the property. This is critical information to consider when planning to buy or sell real estate in this country, as it can significantly affect the final financial calculations and the overall cost of the transaction.

Conclusion

The conclusion of this article summarizes all the important aspects related to property taxes and utility payments in Finland. Throughout the research, I found that systematic expenses, such as taxes and utility bills, play a key role in housing management, whether it is an apartment or a house. Finnish property owners must be prepared for the fact that the cost of living, including tax and service payments, can vary significantly depending on various factors — from the location of the property to its size and purpose.

It has become clear to me that even small apartments or country cottages require careful financial planning. In practice, owners must consider not only the annual taxes, which are usually included in the utility bills, but also potential loans that may arise from the need for repairs. It is especially important to remember that the riskincrease in interest ratesSuch loans can create additional financial burdens.

Furthermore, it is important to consider that when selling real estate, the tax procedure remains relevant and requires careful attention. Even if the transaction took place at the beginning of the new year, the obligation to pay the tax remains with the previous owner.

Recommendations

In conclusion, I would like to emphasize that successful property management in Finland requires an understanding of all these nuances. I hope this information will be useful for both future owners and those who already have housing in this country. Accurate information is the first step towards successful investing and managing in the real estate sector. Considering all of the above, I recommend that everyone carefully study their...rightsandresponsibilitiesas a property owner, to avoid unpleasant surprises and manage your assets as efficiently as possible.