Selling your home
The tax consequences of selling a home depend on whether you are selling the house or apartment where you have lived or whether you are selling another kind of home. While all other capital gains are usually taxable, an exclusion from taxes is granted for the gain derived from the sale of the house or apartment where the taxpayer has lived.
When you sell your home and make a profit, you are eligible to exclude the capital gain if you have owned and used your home as your primary residence for two years (or one of your family members has used it).
To claim the exclusion you must simultaneously have owned the home for at least 2 years, and lived in it as your main home for at least 2 years. The period should be continuous, i.e. no interruptions are permitted.
If the ownership and use requirements are not fulfilled, the capital gain will be taxable as capital income. The tax rate on capital gain and other capital income is 30% if you receive €30,000 or less, and it increases to 34% on the part that goes over €30,000.
For more information, see Muun kuin oman vakituisen asunnon myyminen (only in Finnish).
Ownership period vs. use period
- The length of the ownership period is to be calculated starting on the date of purchase — ending on the date of sale. Transfer of title is the decisive event. Precise information on transfer dates is recorded in the deed of sale-and-purchase, as agreed between the buyer and the seller.
- The length of the live-in period is to be calculated starting on the date when the taxpayer moves in to start residing in the house or apartment. The date of moving in is usually recorded in the Population register system as per the information submitted in the official Notification of move (muuttoilmoitus; flyttningsanmälan).
- For the purposes of calculation, 'family members' refers to children under 18, wives and husbands.
If less than half of the property has been used as the main home, only a pro-rata share can be excluded.
Within the right-of-occupancy system, the gain derived from selling the rights (asumisoikeus; boenderätt) can be excluded from taxation on the same grounds as the gain from selling a house or apartment.
Within the partially owner-occupied system (an arrangement involving the purchase of a fraction of the shares of a rental apartment), the ownership and use periods are worked out separately for each share held. Otherwise, the gain derived from selling the rights can be excluded from taxation on the same grounds as the gain from selling a house or apartment.
After selling your home, you will probably not be making the same payments of interest as previously. This results in a change in your regular tax-deductible payments, so you may want to have a revised tax card, because the new situation can be taken into account in the calculation of your withholding rate. For more information, click How to request a revised tax card (verokortti).