Finland Property Tax Guide 2026 (Kiinteistövero)

2026 Tax Rates by Category

The statutory range for general residential property (vakituinen asuinrakennus) is 0.41% to 0.86% of the taxable value. For holiday homes and other residential buildings (muu asuinrakennus), the range is 0.93% to 1.80%. Non-residential buildings (e.g., offices, industrial, commercial) are taxed at 0.93% to 1.80%. Land (maapohja) is taxed separately at 0.93% to 1.80%. The general property tax rate applied to land and non-residential buildings is set by the municipality within these ranges. Municipalities typically set different rates for each category — for example, Helsinki in 2026 has a general residential rate of approximately 0.45%, a holiday home rate of about 1.45%, and non-residential buildings at about 1.35%.

Taxable Value (Varallisuusarvo)

The taxable value of a property is determined by the Tax Administration using a standardised valuation method based on the property's location, size, age, condition, and usage. The taxable value is typically 40-70% of the market value. For land, the taxable value is based on the area's average land prices (maapohjan arvo). The valuation is updated periodically, but not annually — as of 2026, most valuations are based on 2022 assessment levels. Property owners can appeal their valuation if they believe it is incorrect. Renovations and improvements that increase the property's value may trigger an upward revision of the taxable value.

Payment and Collection

Property tax is payable in two instalments: the first by 16 March and the second by 16 August of each tax year. The tax bill is sent to the property owner by the municipality. If the tax amount is very small (under €10), it may be waived. Late payment incurs interest at the statutory rate (reference rate + 7 percentage points). Property tax is not deductible for personal income tax purposes, but it can be deducted for rental properties as a business expense.

Exemptions and Reductions

Certain properties are exempt from property tax: state-owned properties, embassies, and properties used for public worship or education. Partial exemptions may apply to properties under construction, properties in designated development areas, or properties owned by non-profit organisations. Low-income pensioners may apply for a reduction in property tax through their municipality, subject to means testing. New residential buildings may qualify for a temporary reduction or exemption in some municipalities for a limited period.

Transfer Tax (Varainsiirtovero)

In addition to annual property tax, Finland levies a transfer tax (varainsiirtovero) on property purchases. For residential real estate, the rate is 4% of the purchase price. For other real estate (commercial, industrial), the rate is 4% as well. For shares in housing companies (asunto-osakeyhtiö), the rate is 1.5%. First-time homebuyers under 40 may be exempt from transfer tax up to certain limits, subject to eligibility criteria. The transfer tax is paid to the Tax Administration within two months of the transaction.

FAQs

How is property tax calculated?

Property tax = taxable value of the property × the applicable municipal tax rate. For example, a home with a taxable value of €150,000 in a municipality with a 0.50% rate would owe €750 annually.

Can I appeal my property valuation?

Yes, you can appeal the taxable value assessment to the Tax Adjustment Board or the Administrative Court within the specified appeal period after receiving the assessment.

Is property tax deductible?

Not for personal residence purposes, but it is deductible as an expense for rental property income. Foreign property owners are subject to the same rules.