9 Capital gain or capital loss ‒ Instructions
Gains or losses received from the sale of a property or from the transfer of other assets, for example an exchange of property, should always be reported to the Finnish Tax Administration. This instruction refers only to selling, but it also applies to other sales against payment.
These instructions describe how to file capital gains and capital losses on paper using Form 9.
You can also file capital gains and capital losses electronically in MyTax. If you do so, you do not need the paper form. Read instructions for filing in MyTax. These instructions may also be of assistance.
Form 9 is available for download on our Forms page.The return address is indicated on the first page of the form.
Choose the right form
Report the capital gains on publicly traded shares, securities and book-entry shares separately either in MyTax or on Form 9A: Capital gains and capital losses from trading with securities.
Use form 9 if you have sold assets, for example,
- Real estate
- Shares in a residential housing company or real estate company
- Shares in a non-listed company (other than a publicly traded company)
- A share in a business partnership, i.e. a general or limited partnership
- Fixed assets in forestry.
- Virtual currency.
Form 9 can only be used to report capital gains or losses on property located in Finland. If your property is located in another country, use form 16B.
If you have sold/transferred several assets, always fill in a separate form to show each sale/transfer. If the transferred assets have been acquired in several transactions, you must first calculate the capital gains and losses separately for each transaction, and then provide your report transaction-by-transaction.
Report only your own share of the received selling price, and your own share of the acquisition price, costs, gains or losses. If you have sold property, for example, alongside your spouse, your spouse must complete his or her form with respect to his or her share.
Report all sales, exchanges, etc. even if the gain was not taxable, or the loss was not tax-deductible. For example, your main home may be sold exempt from tax, and a transfer made in connection with a generational change may be tax exempt. These sales should also be reported.
When should the report be submitted?
You can report capital gains and capital losses immediately after the sale, for the purposes of a tax card or tax prepayment, via MyTax. You will not then need to complete this form. You can, however, use paper form 5010e (Application for a prepayment and/or for a change in withholding tax percentage) to revise your tax card. In that case, enclose this form (Form 9).
You must also add the year’s capital gains and losses when you check the pre-completed tax return if their details are not on the return. If information is missing or is inaccurate, report the details in MyTax or on this form.
Also use this form when you submit a claim for adjustment after the assessment process has ended. Fill in a claim for adjustment and attach this form to the claim. The claim for adjustment can also be submitted via MyTax.
If you use the paper form, fill in all of the sections, even if you are correcting only a single item of information.
Sale/transfer of permanent home
You may sell your main home exempt from tax, provided that certain conditions are met. The issue is addressed in section 3 of this instruction.
If your selling prices during the tax year do not amount to more than €1,000, tax is not payable on the gain, nor is loss deductible in all circumstances:
- Capital gains are not taxable if the sum total of your selling prices does not amount to more than €1,000.
- Capital losses are not deductible if the sum total of the acquisition costs of property disposed of during the tax year are no more than €1,000 and, similarly, the selling prices do not exceed €1,000.
The €1,000 limit does not include disposals of such property which are are tax-exempt according to specific laws or tax rules (for example, the sale of your main home). Disposals of household effects or other comparable personal property will not be taken into account either.
The gain from the sale of ordinary household effects will not be taxable if the gain during the tax year does not amount to more than €5,000. However, cars, boats, valuable jewellery, works of art and other investments will not be viewed as household effects.
Report any gains or losses from the exchange or use of virtual currencies in MyTax or on paper (Form 9). Select Other as the type of asset and specify the asset as virtual currency. Also report any tax-deductible expenses that you may have paid when you have acquired virtual currency.
You can use the Tax Administration’s FIFO calculator to calculate your profit from virtual currencies (available in Finnish and Swedish, link to Finnish). The calculator utilises the FIFO principle (First In – First Out). This means that virtual currencies are considered to have been spent in the order that they were acquired.
Read more about the taxation of capital gain (available in Finnish and Swedish, link to Finnish)
Enter your name and personal identity code or company name and Business ID.
Likewise, report the tax year, i.e., the year during which you sold the property.
Tick the appropriate box indicating the type of property in question: real estate, shares in a residential housing company or real estate company, shares in a non-listed company, share in a general or limited partnership, or other property. Provide details about the property, for example, the name of the housing company, Business ID and apartment no. or name of the property and property identifier. If you ticked the box for other property, specify the type of property you have sold.
Fill in the following sections too:
- Date of sale: date of a binding and final deed of sale or other transfer agreement (signed)
- Date of acquisition: date of the acquisition of the property that you have sold onwards. If you have received it as an inheritance or as a gift, as the date of acquisition give the date of death of the person leaving the inheritance. If you have received the property as a gift, give the date when you received the gift as the acquisition date.
- Fractional share that was sold or percentage share that was sold: share of the property you have sold indicated as a fraction or as a percentage. For example, if you own an equal share in an apartment with your spouse and you sell your share, write ½ or 50% here.
- Personal identity code or Business ID of the buyer or the recipient: indicate the personal identity code or Business ID of the buyer or other recipient here. If the buyer or the recipient is a foreigner and he or she does not have a Finnish personal identity code or Business ID, indicate his or her date of birth here.
- Buyer's (other recipient's) name
Provide other necessary information:
- Tick the appropriate box if you have received the property as a gift or as an inheritance. Likewise, give the name and personal identity code or Business ID of the person leaving the inheritance, or the person making a gift. If the person leaving the inheritance or making a gift is a foreigner and he or she does not have a Finnish personal identity code or Business ID, indicate his or her date of birth here.
- If the sale is part of the generational change of a farm or other enterprise, indicate this by ticking the appropriate box.
- Likewise, specify the nature of the family relationship between the recipient and yourself.
- If you have sold a property to the state or to an unincorporated state enterprise as a nature conservation area, as referred to in the Nature Conservation Act, indicate this by ticking the appropriate box.
The gain received from the sale of your main home will be excluded from capital gains tax if the following conditions are fulfilled:
- You have owned the house or apartment for at least two years.
- The house or apartment has been used as either your or your family's main home for at least two consecutive years during your holding period before selling. Family members include the owner's spouse and children under 18. Read more about the definition of spouse for taxation purposes
The land on which the house is located can likewise be sold exempt from tax if its area does not exceed 10,000 square metres, or if it is located in a planned area and does not exceed the maximum plot size of the local town plan.
In this section of the form, fill in the following information:
- the length of the period that the apartment or house served as your or your family's main home
- the total square metre area of the house or apartment
- the part the of area (in square metres) that has served as your or family's main home
- the area of the land on which the house is located (in square metres) if the property is an independent piece of real property.
You do not need to fill in section 4 of the form (Calculation of the capital gain or capital loss) if you are selling your main home and the conditions for tax exemption are fulfilled.
Capital gain or capital loss is calculated on the basis of the acquisition cost and the selling price. As the acquisition cost, you can use either the actual expenses, i.e. the purchase price and selling expenses, or a deemed acquisition cost based on the holding period. Indicate the acquisition cost as per the actual expenses in the left-hand column of section 4, or the calculated deemed acquisition cost in the right-hand column. In this section too, only report the information relating to your share.
If the acquisition price of the property was paid in Finnish marks, use the Conversion Factor 5.94573 to convert it into euros.
4.1 Selling price: Indicate the price you received for the property sold.
From the selling price, you can subtract either the actual acquisition price and the total costs (lines 4.2–4.7) or you have the option of subtracting a deemed acquisition cost, depending on which is higher.
4.2 Acquisition price or undepreciated acquisition cost, or taxable value used for the purposes of inheritance and gift tax: Indicate the acquisition price of the sold property or asset, for example, the purchase price.
If you have made depreciations over a period of years, indicate the acquisition price from which you have subtracted the depreciated amounts here. For example, the acquisition cost of a rented house may have been depreciated in taxation of rental income before selling the house.
If you have received the sold property as an inheritance or as a gift, indicate the tax value that was assessed in inheritance or gift taxation. The value is provided in the inheritance or gift taxation decision. In the case of a sale related to a generational change, i.e. if you have received, as an inheritance or as a gift, a farm, a business enterprise or part of it, indicate the reduced tax value as an acquisition cost. You can obtain the value, if necessary, from the Tax Administration.
If you have sold the property that you received as a gift within less than a year of having received it, indicate the acquisition price for the person who made the gift here, i.e. the amount that he or she would have been able to deduct as an acquisition cost in his or her own taxation. Find this out from the person who made the gift.
4.3 Amount of housing company loans paid back during your holding period: If you are reporting the sale of a housing company share, and you have repaid a share of a debt to the housing company (debt booked as a balance-sheet reserve in the accounting of the housing company), include the repayment in the acquisition price. The capital charges paid by a shareholder to the company increase the acquisition cost of the shares if the payment is allocated to the acquisition or improvement of the company's property and the company booked the capital charges as a balance-sheet reserve in the housing company's accounting. If the company records the capital charge as income in its accounting, this generally cannot be added by the owner of the shares to the acquisition cost of the housing company shares. Information on whether the charges have been booked as a reserve or recognised as revenue by the company is available from the building manager. Read more about the acquisition cost of housing company shares (available in Finnish and Swedish, link to Finnish).
Maintenance charges or charges deducted from rental income cannot be added to the acquisition cost.
4.4 Transfer tax: Report the asset transfer tax that you have paid in connection with purchasing the property.
4.5 Expenses related to the acquisition: Report any other expenses directly related to the acquisition, for example, commission, inspection, appraisal and lawyers' fees that you have paid in connection with the purchase.
4.6 Renovation and improvement costs: Indicate the costs of improvements that you have performed in the apartment during your holding period. Improvement consists of activities such as improving the standard of fittings in an apartment or a house, or improving the standard of building materials. Similarly, report any expenses due to annual improvements conducted to prepare the property for selling.
If you have deducted expenses from rental income in the form of annual depreciation, for example, you cannot deduct them again as you sell the apartment or other dwelling. You can deduct only the portion you have not deducted previously.
4.7 Expenses related to selling: Report the costs arising from selling the property and other expenses incurred in acquiring or maintaining a profit. Such costs may include, for example, condition inspections conducted for the sale, commission fees from the sale, and necessary documents such as a building manager's certificate or a certificate of title.
Maintenance charges or charges deducted from rental income cannot be recorded as selling expenses. However, maintenance charges paid for repairs made when the apartment is for sale or for the purpose of facilitating the sale can exceptionally be regarded as tax-deductible expenses for profit-making. A condition for the above deductions is that the apartment has been unoccupied during that time.
4.8 Deemed acquisition cost: If you calculate the capital gain using the deemed acquisition cost, indicate the deemed acquisition cost in this line. The deemed acquisition cost is either 20% or 40% of the selling price. The percentage is determined on the basis of how long you have owned the property before selling it. The deemed acquisition cost is 20% of the selling price if you have owned the property for less than 10 years. If you held the property for 10 years or longer, the deemed acquisition cost is 40% of the selling price.
If you have sold real property to the state of Finland, to a municipality, to a region or to a joint municipal authority, the deemed acquisition cost is 80% of the selling price. In such a case, it does not matter how long you have owned the property. If you have sold real property to state-owned business corporations, further information is available on tax.fi (available in Finnish and Swedish, link to Finnish).
If you are also reporting amounts to be added to the selling price (see line 4.11), add them to the selling price and calculate the deemed acquisition price only after that.
4.9 and 4.10: Capital gain and capital loss: Calculate the capital gain or capital loss.
From the selling price, subtract the acquisition price and any expenses (i.e. subtract the figures in lines 4.2–4.7 from the figure in line 4.1). If you use the deemed acquisition cost, i.e. the figure in line 4.8, subtract it from the selling price in line 4.1. In such a case, you cannot deduct expenses.
- If you are reporting amounts to be added to the selling or the acquisition price in line 4.11 or 4.12, add them to the selling or acquisition price and calculate the capital gain or capital loss only after this. Read also Additions (lines 4.11–4.13).
- Report the capital gain in line 4.9 or the loss in line 4.10.
In some cases, additions must be made to the selling price, to the acquisition price or to the capital gain or capital loss. The amounts to be added should be written in lines 4.11–4.13.
Amounts to be added to the selling price: Fill in this line if you have received compensation for damage (for loss or damage to the property you sold) during the year of the sale, or during five years preceding that year. Report the share of the amount of compensation that you did not use to repair or renew the damaged property. Read more about compensation to be added to the selling price (available in Finnish and Swedish, link to Finnish).
4.12 Amounts to added to the acquisition price: Report any items to be added to the acquisition price. For example, if you have sold your share in a general or limited partnership, you can add the positive balance of a private account to the acquisition price. Read more about disposing of a share in a company (available in Finnish and Swedish, link to Finnish).
4.13 Amounts to be added to the capital gain/loss: Report any amounts to be added to the capital gain or capital loss. If you have sold a forest property, the capital gain or capital loss amount should be adjusted by adding that part of a forest deduction made during your holding period corresponding to no more than 60% of the acquisition price.
If you have sold your share in a general or limited partnership, the capital gain or capital loss amount should be adjusted by adding the negative balance of a private account, i.e. the sum of cash withdrawals made during the period of your partnership if these have exceeded the sum total of your investment in the partnership and your profit share. Read more about disposing of a share in a company (available in Finnish and Swedish, link to Finnish).
Date and sign the form. Also give your daytime telephone number.