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.
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.
You can use the transfer tax calculator to help with your calculations.
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.
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.
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)
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.