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Permit to buy property in Finland: review of the new law

April 19, 2021

How non-EU citizens can get a permit to buy real estate

At the beginning of this year, Finland adopted a law regulating the acquisition of land plots and private houses by foreigners. The new regulations will come into force in 2020. Now residents of non-EU countries must obtain permission to purchase real estate in the Ministry of Defence of Finland.
The law does not apply to the purchase of apartments or townhouses, but only to private property with a plot of land. Such requirements for Finland are not new. Until 1993, to buy a foreigner’s real estate here, it was necessary to obtain a number of permits. After the law was softened and the necessary request had to be made when purchasing objects that are in the border area. When the state joined the European Union in 1999, the restrictions were lifted. However, in 2018 the government again talked about the resumption of requirements, and in February 2019 was adopted a law that obliges citizens of countries that are not members of the EU, to request permission to buy property from the Ministry of Defense. This rule also applies to companies that are registered in the European Union, but large offices are located outside of it.

The Finnish Ministry of Defence has created a special document that will help foreign nationals to obtain the necessary permits. The guide includes all stages of the procedure, as well as explains the essence of the law.
Obtain a license to purchase real estate within the country have to:

  1. Individuals who are not citizens of the EU or a member state of the European Economic Area. In the case of dual citizenship, permission is not required if the individual has an EU or EEA passport..
  2. Legal entities that are not registered on the abovementioned territory.
  3. Companies with EU registration, but its shareholders, who own 10 percent of the securities and are no longer citizens of the European Union.

The Ministry of Defence reserves the right to give permission to purchase. In case a company wants to take shrewd and divide the property into different owners or, conversely, combine it, the controlling body may refuse the permit. Officials will clearly check every person that requests a license.
Application for permission can be made immediately when the object of purchase is selected. The request is made electronically in Finnish or Swedish. The document must contain the contact details of the parties to the transaction as well as the purposes for which the property will be used. In addition, the ministry may request other information individually. Processing the application will take about three months. Obtaining a permit will be done for a fixed fee, the amount of which has not yet been set.