Learn › 🇫🇮 Finland › Buying a home in Finland

In short: To buy a home in Finland in 2026 you typically need savings large enough to satisfy the loan cap (banks lend at most 95% of collateral value for a first home, and 90% otherwise), plus a one-off transfer tax of 1.5% on a housing-company apartment or 3% on real estate. The first-time buyer transfer-tax exemption was removed on 1 January 2024, so first-time buyers now pay it too. After purchase you carry the mortgage plus either a monthly maintenance charge in a housing company or annual property tax (kiinteistövero) on real estate. Figures are as of 2026 — check the official source when in doubt.

Buying a home in Finland

Kontoo editorial team · Updated 06/24/2026 · 6 min read

Most homes in Finland are bought as shares in a housing company (asunto-osakeyhtiö) rather than as freehold real estate, and that distinction changes the tax you pay. On top of the price you should plan for a down payment shaped by the loan cap, a one-off transfer tax, and ongoing housing costs. This lesson walks through the moving parts as they stand in 2026 so you can build a realistic budget. It is educational background, not financial advice.

Decide what you are actually buying: shares in a housing company (an apartment, the most common case) or a piece of real estate (a detached house with its plot). The tax rate differs between the two.
Check the loan cap (lainakatto). Banks may lend up to 95% of the collateral value for a first home and 90% for other homes, so you generally need to cover the rest yourself, plus costs.
Add the one-off transfer tax (varainsiirtovero): 1.5% for housing company shares, 3% for real estate. Since 1 January 2024 there is no longer a first-time buyer exemption.
Plan for ongoing costs: the monthly maintenance charge (hoitovastike) in a housing company, or annual property tax (kiinteistövero) on real estate, plus your mortgage repayments and interest.

What matters

Buying in Finland starts with a legal distinction that catches many newcomers. An apartment is almost always sold as shares in a housing company (asunto-osakeyhtiö): you buy shares that give the right to occupy a specific flat, and the company owns the building. A detached house with its own plot is real estate (kiinteistö). This split decides your transfer tax rate and how ongoing costs reach you.

The mortgage (asuntolaina) is the centre of the budget. The Financial Supervisory Authority caps how much can be borrowed against the home: up to 95% of collateral value for a first home and 90% for others (the base levels confirmed for 2025–2026). The gap between price and loan, together with the transfer tax and any fees, is what you fund from savings or additional collateral.

Transfer tax (varainsiirtovero) is a one-off tax on the purchase. Since 1 January 2024 it is 1.5% on housing-company shares and 3% on real estate, and the long-standing first-time buyer exemption no longer exists. The buyer files and pays it — for housing-company shares, generally within two months of the agreement.

Then come the running costs. In a housing company you pay a monthly maintenance charge (hoitovastike) and sometimes a separate financial charge (rahoitusvastike). If you own real estate directly, the municipality levies annual property tax (kiinteistövero) within nationally set bands. None of this is advice — it is the structure you can plug your own numbers into.

Buying in Finland (2026): transfer tax is 1.5% on housing-company shares and 3% on real estate, while the loan cap limits the mortgage to 95% (first home) or 90% of collateral value.

ExampleWorked example (rounded, as of 2026). You buy an apartment as housing-company shares for €250,000. As a first-time buyer the loan cap lets the bank lend up to 95% — about €237,500 — so you fund at least €12,500 yourself. Transfer tax at 1.5% of €250,000 is €3,750, paid as a one-off. So before furniture you need roughly €12,500 + €3,750 = €16,250 of your own money, on top of the mortgage. Had this been a detached house (real estate), transfer tax would be 3% of €250,000 = €7,500 instead. Always re-check the current rate at vero.fi.

Try the Kontoo [mortgage calculator](/mortgage-calculator) to see how the loan cap and monthly repayment shape your budget, and confirm current rates on the Finnish Tax Administration portal at vero.fi before you commit.

In depth

Shares versus real estate

Because most Finnish apartments are housing-company shares, the lower 1.5% transfer tax applies to the majority of urban purchases, while detached houses on their own plots are taxed at 3%. The form of ownership also determines whether ongoing housing costs reach you as a company maintenance charge or as a municipal property-tax bill.

Why the loan cap exists

The loan cap (enimmäisluototussuhde) is a macroprudential tool the Financial Supervisory Authority reviews regularly to limit household over-indebtedness. It has stayed at its base levels — 95% for first homes, 90% otherwise — through 2025 into 2026, but it can be tightened, so confirm the figure with your bank when you apply.

Checklist

Are you buying housing-company shares (1.5% transfer tax) or real estate (3% transfer tax)?
Have you set aside the down payment the loan cap requires — at least 5% of collateral value for a first home, 10% otherwise?
Have you budgeted the one-off transfer tax as cash, since it is not part of the mortgage?
Do you know the ongoing cost: a housing-company maintenance charge, or municipal property tax on real estate?

Common myths

Myth: First-time buyers in Finland do not pay transfer tax.

Reality: That was true until the end of 2023, but the exemption was removed from 1 January 2024. First-time buyers now pay 1.5% on shares or 3% on real estate like everyone else.

Myth: You can borrow 100% of the price with no savings.

Reality: The loan cap limits the mortgage to 95% of collateral value for a first home and 90% otherwise, so you generally need your own funds for the remainder plus the transfer tax and fees.

Sources

Education, not advice. How we work and check figures: Editorial. Figures as of 2026, last reviewed 06/24/2026.

Frequently asked questions

Do first-time buyers still avoid transfer tax in Finland?

No. The first-time buyer exemption from transfer tax (varainsiirtovero) was abolished from 1 January 2024. First-time buyers now pay the same rate as everyone else: 1.5% on housing-company shares or 3% on real estate. The exemption only still applies to binding purchase agreements signed before 2024.

How much of the price can I borrow?

Under the loan cap (lainakatto) set by the Financial Supervisory Authority (Finanssivalvonta), a mortgage can be at most 95% of the collateral value for a first home and 90% for other homes, as of 2026. In practice the collateral value relates to the home being bought, so you normally need your own savings or other collateral for the remainder plus transaction costs.

What ongoing taxes apply after I buy?

If you own a detached house and its plot, you pay annual property tax (kiinteistövero) to the municipality. As of 2026 the rate for permanent-residence buildings sits within a 0.41–1.00% band and the land within 1.30–2.00%, with each municipality setting its own figure inside the legal range. Apartment owners in a housing company usually pay their share indirectly through the company rather than a separate bill.

All lessons · Glossary · Editorial · Kontoo does the math and explains – this is general education, not tax, legal or financial advice.

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