Buyer of housing-company shares – pay transfer tax, and file your return

When you buy shares in a housing company and thereby gain possession of an apartment in a high-rise building or townhouse, you must pay transfer tax and file the return to report it. Buyers are required to calculate the amount and make the payment by themselves.

Exemptions from transfer tax may apply if you are a first-time homebuyer. However, even in that case, you must file the return.

1

Calculate the tax

Transfer tax is 2% of the price (including any other compensation that had been agreed) and the unpaid part of any housing-company loan.

When apartments are advertised for sale, the “debt-free price” contains both the price of the apartment itself and the housing-company loan.

In other words, transfer tax is paid on the debt-free price even though you might actually pay up the housing-company loan when you sign the contract.

Example: Sandy buys shares in a housing company for 60,000 euros. These shares are linked to 20,000 euros of housing-company debt. The debt-free price given in the ad is therefore €80,000. This also is the figure you must use for transfer tax. The amount to pay is 2% × €80,000 = 1,600 euros. It does not matter whether Sandy pays off the housing company loan when she makes the purchase, or whether she pays it off gradually as part of her monthly maintenance charge.

2

Pay the tax

Pay the tax in 2 months after you have signed the deed of sale or other agreement. If a realtor has assisted you when you buy the shares, you must pay the tax when you sign the contract.

If you purchased a newly constructed house or apartment, pay the tax in 2 months from the date of transfer of ownership to you even if a realtor had assisted you.

See instructions for payment

3

File the return

Submit the transfer tax return in 2 months after you have signed the deed of sale or other agreement (if no realtor assisted you).

If you buy with the assistance of a realtor

  • the realtor hands you a copy of the completed transfer tax return
  • the realtor submits the retun to the Tax Administration.

If you purchased a newly constructed house or apartment, file the return in 2 months after the date of transfer of ownership to you even if a realtor had assisted you.

File the return online (in Finnish or Swedish)

File the return on paper

See instructions

4

Give the return to the manager of the housing company

To have your name entered in the list of shareholders, show the manager one of the following:

  • a printout of the e-filed return you made, complete with the acknowledgement of receipt by the Tax Administration
  • your processed (stamped) paper return
  • your copy of the return that your realtor prepared.

Ask the manager about any other documentation you might need for having your name entered in the list of shareholders.

 

Frequently asked questions

If additional property such as parking or storage facilities are part of the contract, you must remember to pay transfer tax and file the return for that as well.

If the contract contains a specification of the price of the parking (or other) space, fill in the price information in your transfer tax return.

Transfer tax must be paid after purchase of shares in a housing company in 2 months after signing the deed of purchase. If a realtor assisted you when you bought the apartment, transfer tax must be paid immediately when the deed is signed. However, the usual due dates described above may change in housing companies that have a special clause on share redemption in their articles of association.

If the clause entitles an outside third party to “redeem” the shares (i.e. buy them to himself within a certain deadline), this third party must pay the transfer tax and file a tax return on it in two months after exercise. In this case, you as the original buyer do not have to pay the tax. However, if you had already paid it, you can ask for it to be refunded back to you. Fill out an application form.

When a realtor sold the apartment

  • No third party comes forward to redeem the shares:

    The buyer must pay the transfer tax immediately after the deadline set out by the clause. In this case, the realtor is accountable for making sure that you – as the buyer of the apartment – will pay the transfer tax. The realtor submits the transfer tax return to the Tax Administration. When you pay the tax without delay after the deadline date, the Tax Administration will not impose a punitive tax increase on you.

  • Someone comes forward to exercise his or her right of redemption:

    The redeemer must pay the transfer tax and file a tax return on it in two months after redemption. In this case, the realtor is not treated as having been an intermediary in the sale, so the realtor is not accountable for ensuring that the transfer tax is paid.

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