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How to Buy Real Estate in Finland

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Finland is one of the most stable countries in the Nordic Europe and probably in the whole world. Ownening real estate in a stable place during unstable times seems tempting. Is it difficult to become an owner in Finland as a foreigner? Let us help you to make a decision.

Step 1. Reservation and Property Check

Checking the property

Once you have found the property you like, you need to find out all the questions related to it. For example, if you are going to buy an apartment, find out from the House Manager what repairs or other works the management company plans and how much they will cost. You need to know this in advance, as it may entail large financial costs. Repair of water supply and sewerage pipes can cost a new home owner several thousands of euros.

Special attention should be paid to assessing the condition of the real estate object. This is the buyer's responsibility, which should not be ignored. After all, if you buy a house, and then find some kind of malfunction that could be seen during the inspection, you will not be able to get compensation from the seller.

As for hidden defects, the detection of which could well affect the transaction, the seller will be forced to pay compensation to the buyer.

Important! The liability of a housing joint-stock company for defects usually lasts for two years. The liability of the real estate seller is five years.

Opening a bank account

You can open an account in a Finnish bank to pay for a transaction, either in person or remotely. But in the first case, you can't do without a personal visit to the bank. Only then will the account be activated. The account must be opened in euro.

You must have a foreign passport, bank statements from personal accounts in the country of residence, a certificate of employment, a certificate of income and a number of other documents that a bank may require from a foreigner.

Making a deposit

After the buyer has selected a specific property, it is necessary to draw up a preliminary contract and make a deposit.

The preliminary agreement specifies the characteristics of the property, the payment schedule, the payment method, the total cost of the property, the exact date of transfer of the property to the new owner, the amount of penalties for late payments, as well as the amount of the deposit and the conditions for its transfer.

The preliminary agreement is signed by the seller and the buyer. At the same time, a notary must be present.

As a standard, the deposit is 3-5% of the cost of the property, although in each individual case it can be negotiated individually. But not less than €2,000 and not more than 10% of the transaction amount. If the transaction is disrupted or canceled due to the seller's fault, the deposit is fully refunded to the buyer. If it is the buyer's fault, the deposit remains with the seller.

Real estate for sale in Finland:
Flat for 55 000 euro in Imatra, Finland
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Renovated, spacious and bright two-bedroom apartment in the very center of Imatra in installments!The 1st installment is indicated – 10,000 euros + 25,000 installments for 7 years from the Management Company with a monthly payment of 320 euros. Total cost without installments = 35.000 euros. Just a 10–minute drive (7 km) from the border with the...
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Flat for 12 800 euro in Savonlinna, Finland
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For sale an inexpensive one-bedroom apartment in Savonlinna, on the second floor, with an area of 49 m2 and the year of construction 1974. Monthly utility bills 205.80 € + 20 € for water per person. Water central heating of the house. Cable TV. The apartment is rented out. The bathroom is completely renovated, there is a sauna in the basement of...
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Flat for 20 000 euro in Virrat, Finland
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House for 89 000 euro in Hamina, Finland
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Flat for 39 000 euro in Kotka, Finland
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Flat for 15 000 euro in Varkaus, Finland
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Flat for 23 573 euro in Kotka, Finland
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Flat for 30 000 euro in Vaasa, Finland
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Flat for 39 900 euro in Imatra, Finland
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Flat for 28 000 euro in Lieksa, Finland
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House for 30 000 euro in Tampere, Finland
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Flat for 29 000 euro in Heinola, Finland
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You buy, get a visa for all family members and quietly ride to Finland and all over Europe!!! It is possible to conduct a transaction remotely without your presence by proxy!!! And also in the city of St. Petersburg/Vyborg!!! From June 21, 2021, it will be easier to obtain a visa and enter Finland (Schengen) for property owners from...
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House for 35 000 euro in Hameenlinna, Finland
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House for 25 000 euro in Ahtari, Finland
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House for 15 000 euro in Imatra, Finland
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A house for year-round living in Imatra. Two floors + a full basement. The plot is 13.5 acres owned. The commission for registration is 1500 euros. We provide assistance in registering a legal entity / buying a ready-made business; processing documents for obtaining a residence permit in Finland.
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Cottage for 119 000 euro in Asikkala, Finland
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Flat for 14 500 euro in Lieksa, Finland
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Flat for 21 096 euro in Kotka, Finland
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Stage 2. Conclusion of the Purchase and Sale Agreement

To sign the contract, the buyer only needs a passport at the transaction. But the seller must prepare a whole package of documents:

  • Certificate of registration of property rights.
  • Extract from the real estate register.
  • Certificate of encumbrances.
  • Map from the Real Estate Cadastre.
  • A copy of the urban development plan.
  • Building permit.
  • Certificate of inspection of the property to technical supervision.
  • Construction drawing.

The purchase and sale agreement is usually drawn up by a bank or realtor in Finnish. A copy in your language can also be made, but only the original version has legal force.

A purchase and sale agreement is an agreement that specifies the price of an apartment or other real estate, the condition of it, and the day on which the buyer will receive it for their use. The buyer has the right and (in their own interests) must read the contract in advance.

When signing the contract, in addition to the seller and the buyer, a realtor and a notary are present. The latter is the guarantor of the legality of a real estate transaction.

Helsinki, Finland
Helsinki, Finland

Step 3. Payment Transactions

Payments between the seller and the buyer are made by a bank transfer. By the time the purchase agreement is signed, the buyer must transfer the full amount of the transaction to the seller, excluding the security deposit. If there is no installment plan, it usually takes two weeks to complete the transaction.

In addition to the transaction itself, the buyer pays the transfer of ownership tax of 2% and 4% for real estate, notary services and realtor services.

Also read: Work in Finland: How to Find, What Position to Choose and How Much You Can Earn

Stage 4. Registration of a New Owner

Immediately after the conclusion of the transaction, the buyer must register it in the city court, if it is a real estate (all but apartments). To do so, you need to fill out a form and send it along with the tax receipt, the original contract of sale and a copy of the passport to the court of the district where the purchased property is located.

The property registration process takes about 2-3 months on average. Documents must be submitted within 6 months from the date of signing the contract of sale, otherwise penalties from 20% of the tax on the transfer of ownership will be charged. The maximum penalty may be 100%, which means that the amount to be paid will double.

The completed certificate of ownership registration will be sent to the postal address specified by the owner.

As for apartments in housing joint-stock company property, the new owner must declare the transaction to enter it in the register of shares immediately after the purchase. For that you need to show the manager of the house the contract of sale and a document certifying the payment of tax on the transaction.

Photos: pixabay.com

Quoting conditions of Prian.info materials

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