Owning Finnish Property as Non-Resident 2026: Rental Tax, Property Tax, Representative

Renting out Finnish property as non-resident: tax treatment

As a limited-tax-liable (rajoitetusti verovelvollinen) owner of Finnish real estate or housing-company shares, your rental income is Finnish-source and taxed in Finland regardless of where you live. The 2026 rate is 30% on annual capital income up to €30,000 and 34% above (Income Tax Act §32). Verohallinto requires non-resident landlords to file an annual tax return via OmaVero (Finland’s online tax portal) or paper form 6204e by the standard deadline (typically May for the prior calendar year).

Deductible expenses include the maintenance charge (hoitovastike), the financing charge (rahoitusvastike), property maintenance and repairs, property tax, insurance, vacancy losses, and any agent commission for finding tenants. Major renovations are capitalised and deducted via depreciation — typically 4% straight-line per year for the building component; land does not depreciate. Keep detailed receipts for at least 6 years; Verohallinto may audit non-resident landlords more closely than residents.

Property tax (kiinteistövero) — paid by all owners

Property tax (kiinteistövero) is levied annually on real estate by the municipality. The 2026 rates vary by municipality and property type: a typical range is 0.93-2.0% of the taxable value (verotusarvo) for residential land and buildings, with separate rates for vacant building land (often 1.5-6%). The taxable value is set by Verohallinto using mass valuation; it is typically 50-70% of market value but can be challenged on appeal.

The tax is invoiced annually in spring/summer to your registered address. Non-residents pay the same rate as residents — property tax has no residency requirement. Update your foreign address with Verohallinto via OmaVero to avoid missing the bill. Late payment incurs 7% penalty interest plus late fees.

Maintenance charge vs rental income: housing company shares

If you own shares in a Finnish housing company (asunto-osakeyhtiö), the rental income is your gross rent received from the tenant. The company charges (yhtiövastike, comprising maintenance and financing charges) are paid to the housing company, not deducted from rent automatically. As landlord, you pay both: collect rent from the tenant, pay the company charges to the housing company (taloyhtiö), declare gross rent and deduct the company charges on your tax return.

Important quirk: if the financing-charge portion is treated as capitalised by the housing company, you cannot deduct it as an operating expense — it adds to your share cost basis instead, reducing future capital gain. If treated as income-recognised, you can deduct in the year paid. Check the housing company’s annual financial statement and consult the property manager (isännöitsijä) before assuming either treatment.

Selling Finnish property as non-resident

Tax representative (veroedustaja): when and why

Verohallinto recommends but does not require non-resident property owners to appoint a Finnish tax representative (veroedustaja). The representative receives correspondence on your behalf, files OmaVero declarations, ensures deadlines are met, and acts as point of contact for audits. Costs typically €300-€800 per year for individuals with one rental property; firms include accounting offices and law firms.

Without a representative, you must monitor Finnish tax communications yourself. Verohallinto sends most correspondence by post to the foreign address on file; missed deadlines incur a 4-30% penalty supplement (veronkorotus). For significant property holdings or complex situations (multiple properties, mortgage on Finnish property, partial commercial use), a representative is almost always cost-effective.

Mortgage on Finnish property after emigration

Existing Finnish mortgages continue at the agreed terms after emigration — the bank does not call the loan due simply because you become non-resident. Interest paid on a Finnish home mortgage was historically partially deductible against capital income (home mortgage interest deduction, asuntolainan korkovähennys) for residents; for non-residents, the deduction is generally only available against Finnish-source rental income from the same property. Consult Verohallinto’s bulletins for the specific year — the deduction percentage has varied between 5% and 35% over the past decade.

If you remortgage or take a new Finnish mortgage as non-resident, OP, Nordea Finland, Danske Bank and Aktia have generally suspended new lending to non-residents. Some banks accept it with a Finnish guarantor; others not at all. Check our bank account guide for current bank policies.

Inheritance and gift tax for non-resident owners

If you die owning Finnish real estate, the property is subject to Finnish inheritance tax (perintövero) under §4 of the Inheritance and Gift Tax Act, regardless of where you (or your heirs) lived. The tax is paid to Verohallinto by the heirs; rates are 7-19% (Class I — children, spouse, parents) or 19-33% (Class II — others). Tax-free portion: €20,000 for Class I children, lower for others.

Foreign inheritance tax may also apply in the destination country. Most tax treaties between Finland and other countries include a separate inheritance tax article allocating taxing rights and providing credit for double taxation. Plan well ahead — a will drafted in your destination country may not be valid for Finnish real estate without specific Finnish-law clauses; consult a Finnish lawyer specialising in cross-border estates.