Finlandiya - emlak vergisi rehberi

Corporation tax

The standard rate of corporation tax in Finland is 26%.  This applies to a Finnish incorporated company holding property in Finland, or a non-resident company trading in Finland through a branch or permanent establishment. Corporation tax is reportable to the tax authorities on an accounting year basis.

A non-resident company holding Finnish property will be subject to income tax at the standard rate of 26% on rental or other income generated by the property or shares in a mutual property holding company.

Capital gains

Capital gains realised by a Finnish incorporated company or a non-resident company carrying on a trade in Finland through a branch or permanent establishment on the disposal of real estate or shares in a property holding company are subject to corporation tax at the standard rate of 26%.

Gains realised by a non-resident company on the disposal of shares in a Finnish real estate company (i.e. whose assets consist more than 50% of Finnish real estate) are generally subject to corporation tax in Finland.  However, the provisions of tax treaties will be observed.

Property tax

Property tax is charged at 0.5% - 3% (depending on the municipality where the property is located) on the value of the property which must be determined by a fixed formula.  It is collected annually by the relevant municipality. Farming land and forests are exempt.

Property transfer tax

The purchase of Finnish land is subject to transfer tax at 4% on the purchase price or other consideration.

The purchase of shares in a Finnish property holding company is subject to transfer tax at 1.6% on the share price if either the seller or purchaser is resident in Finland. Transfer tax is levied if the purchased shares relate to a real estate company, even if both parties to the transaction are non-residents.

VAT

Property rental payments are generally VAT exempt.  Under certain conditions a landlord or real estate company may register voluntarily for VAT.

Sale of real estate is VAT exempt.  If real estate is sold less than five years from the end of the calendar year during which new or major construction work on the property was finalised, the seller is liable to repay any VAT deductions previously made.


The above is for general information purposes only. It is not intended to be comprehensive or to provide any specific tax advice.