Denmark
Iceland
Norway
Finland
Sweden
Menu

Do you own real property, a building, house or apartment in another Nordic country and are living in Finland?

This applies to you who live in Finland and own real property, a building, house or apartment in another Nordic country. This information only concerns taxation of this type of income.

 

Taxation in Finland

A piece of real property, a building, house or apartment in a foreign country is regarded as taxable in the country where it is located.  However, you will always be expected to file a tax return in Finland in which you should specify the piece of real property or the building, house or apartment in a foreign country including any income derived from it.

If you have rental income from a foreign asset, the net profit of your rental activity will be assessed at a 30 or 34 percent capital income tax rate. To eliminate double taxation, the tax paid in another country will be subtracted from the tax payable in Finland.  However, the amount subtracted cannot be greater than the tax that would be payable in Finland for the rental income in question. 

Foreign rental income can be adjusted by subtracting any foreign real estate paid for the real property, building or house.

Selling your assets

Capital gains are assessed at a 30 or 34 percent capital income tax rate.  The taxable capital gain will be computed according to Finnish tax rules.  To eliminate double taxation, the tax paid in another Nordic country will be subtracted from the tax payable in Finland.  However, the amount subtracted cannot be greater than the tax that would be payable in Finland for the capital gain. 

If you have lived in the country where the house or apartment that you are selling is located and you have used it as your and your family's permanent home for at least two years, you will not have to pay tax in Finland for the capital gain. 

No Finnish real estate tax will be levied on a piece of real estate or a building not located in Finland. 

Select the other country here:   Denmark | Iceland | Norway | Sweden
Menu
 
Logo