Real estate tax rates
Real estate tax is set by the local municipal council and is calculated as a percentage of the taxable value of the property.
Municipalities can set their own tax rates within the ranges
- 0.93% – 2,00% for general real estate tax
- 0.41% – 1,00% for permanent residences
- 0.93% – 2,00% for other residences
- 2.00% – 6.00% for unbuilt sites
Where no rates have been set for specific categories such as unbuilt sites and second residences, the general real estate tax rate is applied.
Calculation of the taxable value of a real estate unit is based on the Act on Assessment of Assets in Taxation, secondary legislation from the Ministry of Finance, and the Tax Administration’s annual basis for assessment. If the fair market value of a piece of real estate is lower than its assessed value, the fair market value is to be applied when determining the tax.
The taxable values of land and buildings are calculated separately. The taxable value of the whole real estate unit is the sum total of the value of the site and any buildings.
Buildings under construction are liable for tax on the basis of their degree of completion at the end of the previous year. The building’s replacement value is assessed in the same way as for any completed building. The taxable value corresponds to the degree of completion as a proportion of the replacement value. If your tax demand did not appear to take into account the fact that your building project was unfinished, the cause may be a failure on your part to report the project’s degree of completion to the Tax Administration.