Renovation and changes in the equipment level
Basic improvements and renovations affect the taxable value of the building.
Report the renovations of the building yourself.
Changes in the equipment level, such as adding electricity or a water pipe to your building
Correct your real estate tax decision, if the equipment level of the building has changed or if the information on equipment is incomplete. Changes in the equipment level include, for instance, adding a water pipe, sewer, electricity or mechanical ventilation to a building.
Example: The building has direct electric heating. You replace it with a heating system with water circulation, where the source of heat is geothermal heat. In this case, the equipment level changes from electric heating to central heating. Report the change to us.
In contrast, if you only change the source of heat (e.g. from oil to geothermal heat), the equipment still constitutes central heating. This change does not need to be reported, because the building has already been assessed as having central heating.
How much does renovation affect the amount of real estate tax?
The impact of renovation on real estate tax is always assessed on a case-by-case basis. Renovations usually increase the taxable value of the real estate unit, thereby also increasing the real estate tax. If the old real estate unit is renovated, its real estate tax increases compared to a building in its original condition.
Instead of the condition of the real estate, renovations can change the information on the property details that affect its taxable value. For example, the area of a detached house increases when more rooms are built in the basement or attic. In this case, the taxable value of the building is calculated according to its new property details, and the discount due to the age of the building is not reduced.
You will only see the final impact of renovations on real estate tax in your new real estate tax decision.
Further information in the detailed guidance on taxes (in Finnish): Kiinteistöjen arvostaminen kiinteistöverotuksessa (Assessing real estate units in real estate taxation), section 3.5.3
FAQ about equipment
A water pipe refers to a fixed water pipe system installed in the building where the water comes from a regional water supply system or well (dug or drilled well) either using pressure or a pump. A pipe from a lake to a sauna or a leisure property that is removed for winter is not considered a water pipe.
A sewer refers to a fixed sewer system installed in the building that ends in the regional sewer network, a settling well, cesspool or small sewage treatment plant. A hole in the ground used to treat so-called grey water or a pipe leading directly into the ground from a building are not considered sewers.
Central heating refers to a heating system with water circulation, where the source of heat is oil, wood or coal, district heat or geothermal heat. Electric heating with thermal storage as well as forced-air central heating, in which the building is heated with air circulation, are also considered central heating.
Direct electric heating and heating with an oil heater or wood-burning stove are not considered central heating. In direct electric heating, the building is heated with a heater, underfloor heating or similar, connected directly to the electricity grid. If air source heat pumps or heat-storing fireplaces are used for heating, this also does not constitute central heating.
A detached house or leisure property has electricity when the building is connected to the electricity grid or when an electric current of 230 volts is connected to it, regardless of how the electricity is produced.
A leisure property has a WC if the system can be flushed with water and it is connected to a sewer. A chemical toilet or an electric dry closet is not considered a WC.