First-time homebuyer – find out whether the exemption applies to you

As a first-time homebuyer, you may not have to pay transfer tax if:

  • You are 18 - 39 years of age.
  • After the purchase, your share of ownership is 50% or more.
  • You buy the place to use it as your permanent home and you move in within 6 months from the date when you signed the contract.
  • You have not been a homeowner previously with at least a 50-percent ownership of an apartment or a house.

A first home may consist of shares in a housing company such as a block of flats or a terraced house. It can also consist of real estate such as a detached house. The exemption from paying transfer tax does not apply to parking spaces.

First-time homebuyer – how to file a transfer tax return for shares in a housing company.

First-time homebuyer of a unit of real estate – how to ask for an eligibility statement and obtain registration.

Do not forget the necessary registrations

Even though you will not pay transfer tax, you must remember to

You must also file a Notification of move to the Local Register Office.

Frequently Asked Questions

If you do not move in to live in your new home in 6 months after contract date, you must pay the transfer tax.

If you move in later to live there on a permanent basis, you can request refund. Use the special refund form for transfer tax.

If all the requirements of exemption are met, we will refund the tax you paid.

If you buy a piece of land or a lot for building your first home, you must first pay up the transfer tax and apply for registration of title.

Later, you can request refund when the building is finished and has passed the move-in inspection. Use the refund form for transfer tax. If all the requirements of exemption are met, we will refund the tax you paid.

Requirements on a building plot

The exemption can maximally be applied on a plot that has been created in accordance with the local zoning plan. If you have bought a parcel of land in an area outside zoning, the exemption can maximally be applied to 10,000 square metres of land. This definition only limits the maximum tax-exempt size of the building plot. The building plot used for the calculation of real estate tax is considered to be the tax-exempt building plot.

You must pay transfer tax on the part of the price that you have paid for any land outside the tax-exempt maximum area. Such land can be woodland, field, or another building site. In this case, you must give an estimation of how the price is divided between the different types of land and the grounds for it.

You can also ask the Finnish Tax Administration for a statement on how much tax you should pay.

Read more about first-time homebuyer’s exemptions when purchasing real estate. (in Finnish and Swedish only).

You do not have the right to get the first-time homebuyer’s exemption if you have previously been the owner of 50% or more of

  • an apartment or house located in a foreign country or in Finland – this includes ownership of dwellings for investment purposes
  • apartments or houses that you have received as inheritance or gift.

However, the tax exemption is not affected if you own real estate for recreation purposes or a timeshare.

The exemption only concerns permanent homes.

It may be that you buy a parking or storage space together with your home. Nevertheless, they are left outside the exemption if the shares for parking and storage spaces can be sold separately (there are specific series of shares for them).

It is possible to buy the first home in stages. If you buy less than half of the ownership of the home, you must pay transfer tax on your purchase.

If you make a further purchase later and after that, you own at least half, you can request refund. Use the refund form for transfer tax.

If all the requirements of exemption are met, we will refund the tax you paid.

In a planned area, tax-exemption applies to no more than the plot in the plan. If you have bought a building site in an area that has not been planned, your maximum tax-exemption is for 10,000 square metres. This definition only limits the maximum tax-exempt size of the building site. The building site used for the calculation of real estate tax is considered to be the tax-exempt building plot.

Transfer tax must be paid on the sales price that applies to items other than the tax-exempt building plot. Such items include forest land, fields or other building sites. In cases like this you must present a well-founded estimate of how the sales price is divided.

You can also ask the Finnish Tax Administration for a statement on how much tax you should pay.

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