Finland is going to reduce property transfer taxes

What has happened. The Finnish government proposes to reduce tax rates on the transfer of real estate, shares in housing joint-stock companies (apartments) and other securities.

What will change:

• The property transfer tax rate (for private houses) will decrease from 4% to 3%.
• The tax rate on the transfer of shares in housing companies (apartments) will decrease from 2% to 1.5%
• The government also proposes to cancel the benefits for first time home buyers that are currently in effect.

Deadlines. The law is expected to take effect at the end of the year, but tax interest will apply retroactively to transactions entered into on or after October 12, 2023.

Context. According to Finnish analysts, the number of real estate transactions has fallen by about 20% since last fall, with no signs of improvement yet.

Source: The Ministry of Finance

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