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Buying a home

If you buy an apartment, flat or house, the tax known as transfer tax (varainsiirtovero; överlåtelseskatt) will be payable.  As the buyer, you will usually be responsible for the payment of transfer tax, unless it has been agreed otherwise in the contract.  However, exemptions may apply if you are a first-time homebuyer.

The rate of transfer tax is 2 % (from 1 March 2013 onwards), the tax base being the purchase price of an apartment in a housing company. However, if you buy an independent real property unit, such as a house, the rate will be 4%. Responsibility for payment rests with the buyer.

The new tax base as of 1 March 2013 is the debt-free selling price i.e. the value of the apartment itself plus its portion of the debts of the housing company. For more information, click:

If you engage the services of an estate agent to help you with the contract for buying a home, transfer tax will be payable immediately the deal is made.  In such cases, the estate agent will have the responsibility of ensuring that the correct tax return form is delivered to the Tax Administration and that the correct amount of tax is paid.

Buyers of real property usually borrow money to finance the purchase. If you have a home loan, you will be entitled to tax credits for your payments of interest on the loan.  If you have a newly signed loan contract, we recommend that you request a new tax card (verokortti; skattekort) to reduce your tax withholding and to increase the net portion of your pay.  For more information, click

Buying shares in a housing company  

If you have no estate agent assisting you when you buy, it will be your responsibility to both report and pay transfer tax.  You should fill in the return form and specify the shares that you have bought.  

Buying real property

The transfer tax for real property units is 4%.  The buyer usually pays the tax.

Tax credit on interest payments

Interest payments on a home loan usually yield a benefit in the form of a tax credit.  However, different tax rules will apply to home property used for other residential purposes. 



Go to Glossary to look up important tax concepts and terminology.

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Last Update: 9/12/2011