How changes in the ownership of real estate affect real estate tax

If you have purchased a real estate unit

You do not need to report the purchase of a real estate unit for the purposes of real estate tax. We will receive information on the change of ownership from the National Land Survey of Finland.

• If you bought the real estate unit in 2023, you will be liable for the real estate tax as of 2024. You will receive a real estate tax decision in spring 2024.
• If you bought the real estate unit in 2024, you will be liable for the real estate tax as of 2025. You will receive a real estate tax decision in spring 2025.

When you receive a real estate tax decision for the first time, check the information and make corrections if necessary. In particular, check the ownership shares if there were multiple buyers.

Did you not receive a decision? See the instructions

If you have sold a real estate unit

You do not need to report the sale of a real estate unit for the purposes of real estate tax. We will receive information on the change of ownership from the National Land Survey of Finland. However, remember to report the sale of the real estate unit for income tax assessment. See the instructions for reporting the sale of a real estate unit.

• If you sold the real estate unit in 2023, you are no longer liable for the real estate tax in 2024. If information on the real estate unit is still included in your real estate tax decision in spring 2024, report the sale on the real estate tax return.
• If you sold the real estate unit in 2024, you are still liable for the real estate tax in 2024.

Note: If you and the buyer have agreed on the payment of the real estate tax in the deed of sale, the agreement is between the two of you. The Tax Administration will not divide the real estate tax based on your agreement. The tax is imposed on the seller for the year of sale.

If you have given a real estate unit as a gift

Usually, you do not need to report a gift to the Tax Administration for the purposes of real estate tax. We will receive information on the change of ownership from the National Land Survey of Finland.

• If you gave the gift in 2024, you are liable for the real estate tax throughout 2024.
• If you gave the gift in 2023 but still receive a real estate tax decision, report the change of ownership on the real estate tax return.

If you have retained the right of use or possession to the real estate unit, you are still liable for the real estate tax.

If you have received a real estate unit as a gift

Usually, you do not need to report a gift to the Tax Administration for the purposes of real estate tax. We will receive information on the change of ownership from the National Land Survey of Finland.

• If you received the real estate unit as a gift in 2023, you will be liable for the real estate tax as of 2024. You will receive a real estate tax decision in spring 2024.
• If you received the real estate unit as a gift in 2024, you will be liable for the real estate tax as of 2025. You will receive a real estate tax decision in spring 2025.

Remember to also file a gift tax return and pay the gift tax.

Instructions for filing and paying gift tax

The Tax Administration will receive information on the division of a real estate unit from the National Land Survey of Finland. When you receive a real estate tax decision, check the information and make corrections if necessary.

If the ownership of a real estate unit has changed due to the distribution of matrimonial assets, report the change for purposes of real estate tax when you receive a real estate tax decision.

The date when the matrimonial assets were distributed determines who is liable for the real estate tax. The Tax Administration always collects the tax from the party who owned the real estate unit at the start of the calendar year. If the assets were distributed during 2024, the spouses are jointly liable for the tax throughout 2024.

The point in time when the inheritance is distributed determines who has to file changes to real estate information and pay the real estate tax. The Tax Administration always collects the tax from the party who was the owner or possessor of the real estate unit on the first day of the year.

Read more about real estate tax on estates of deceased persons

In some cases, the owner of the real estate unit does not hold the right of possession to the unit. Instead, this right may be held by a party comparable to the owner. In these cases, this party is responsible for the real estate tax.

A party comparable to the owner may be

• a surviving spouse who has the right to continue living in the home they shared with the deceased
• an individual who has been granted the right of possession as part of the distribution of a death estate
• an individual whose right of possession to a real estate unit that is included in the death estate is based on a usufruct legacy
• an individual who has been given the right of possession as a gift by the owner of the real estate unit
• an individual who has given the real estate unit as a gift to another party but has retained the right of possession.

If the real estate unit is sold, the seller is not considered a party comparable to the owner even if they retain the right of possession to the property. The party holding the right of possession may be considered comparable to the owner only if the ownership of the real estate unit was transferred without any form of monetary compensation.

Example: Parents have gifted their leisure property to their child. The parents have retained the right of possession to the property and are therefore considered parties comparable to the owner. The parents are responsible for paying real estate tax on the property. However, if the child bought the property from their parents, the parents would not be considered parties comparable to the owner even if they retained a lifetime right of possession to the property. In this case, the child buying the property would be responsible for the real estate tax.