Changes to the taxation of vacation homes

10/23/2017

Finland's Supreme Administrative Court has issued a ruling on 18 August 2017 concerning the renting of a vacation home, ruling KHO 2017:131 (in Finnish and Swedish only). The ruling causes changes to taxation practice. These changes will be applied retroactively, as well.

The ruling concerns vacation homes that are actively offered for rent. When a vacation home is both actively offered for rent and rented out, and the home is more often in rental use than in personal use, the vacation home is considered a source of income. Therefore, expenses accrued during the times the vacation home is rented out can be deducted from rental income as expenses for the production of income. Expenses related to personal use are non-deductible.

Page last updated 10/23/2017