Many people who move to Finland end up as landlords without planning to: they buy a flat, move for work or a larger home, and keep the first one. This page covers the two sides of this — the tax, and the rules you must follow as a landlord — and then a Finnish oddity that the word "renting" also covers: leasing out land for someone else to build on.
Letting a flat
The lease
The Act on Residential Leases governs residential tenancies, and the rules below come from it. Put the lease in writing, and include everything that matters; a verbal side agreement is difficult to prove later. Decide first whether the lease is open-ended or fixed-term. A fixed-term lease binds both parties for the entire term and can only be ended early in special situations set out in law. An open-ended lease can be ended with notice.
The deposit
A security deposit is standard and can be at most three months' rent. It is not your money. You must keep it safe, you cannot use it for your own expenses, and you must return it without delay and no later than 14 days after the tenancy ends unless there is a reason not to; if you withhold it without justification, default interest accrues. You can only retain what the tenancy agreement allows for — unpaid rent, damage, inadequate final cleaning — and you must show why. Tenants are not liable for normal wear and tear from living in a flat, and it is up to you to prove that any wear is unusual.
Rent rises
You cannot raise the rent unilaterally during the lease. An increase requires an adjustment clause in the lease that states its grounds, such as an index or a fixed percentage, or a new agreement with the tenant. A clause that does not state what the increase is based on is invalid. Unless agreed otherwise, rent is due on the second day of each month.
Ending the lease
| Who gives notice | Notice period |
|---|---|
| Landlord, lease signed on or after 1 October 2026, tenancy under two years | Three months |
| Landlord, lease signed on or after 1 October 2026, tenancy of two years or more | Four months |
| Landlord, lease signed before 1 October 2026, tenancy under a year | Three months |
| Landlord, lease signed before 1 October 2026, tenancy of a year or more | Six months |
| Tenant | One month |
Your notice period cannot be shortened by the lease, and the tenant's cannot be lengthened. Notice runs from the last day of the calendar month in which it is given, and it must be in writing with proof of delivery.
The tenant's perspective on this, and where tenants find flats, is covered in finding a flat in Finland.
Tax on rental income
Rent from an investment property is capital income. The rate, at the time of writing, is 30 per cent up to €30,000 of capital income a year and 34 per cent on the portion above this. Tax is charged on the net figure, after deductible costs.
Costs you can deduct from the rental income include:
- the maintenance and water charges you pay to the housing company
- advertising and letting agent's fees for finding a tenant
- property insurance
- repairs, such as redecorating or replacing appliances, doors or windows, in the year you pay for them
- interest and bank service fees on a loan taken out for the flat
- travel for viewings, tenant meetings, maintenance visits and shareholders' meetings; for your own car, the rate was 27 cents per kilometre for 2025
Improvements — such as an extension, glazing the balcony, or a new heating or ventilation system — are not deducted immediately but depreciated over several years. Repaying the loan itself is not deductible, and the financing charge you pay to the housing company towards its loan is deductible only if the company books it as annual income rather than capital. If you let the flat below market rent, for example to a relative, you lose the deduction for interest and bank fees.
If costs exceed the rental income, the loss is set against your other capital income, or credited against the tax on your earnings.
Declare the rental income to the Tax Administration in advance via MyTax, so the tax is collected through your tax card or prepayments; otherwise, you will face back taxes after the year ends. The wider tax picture for a newcomer is covered in first steps after moving to Finland.
Leasing out land
Municipalities, in particular, often lease out plots for houses as an alternative to selling them, under a ground lease (maanvuokra). The tenant owns the house; the landowner retains the land and collects rent.
Put a ground lease in writing, including at least:
- the parties
- the leased area and what it may be used for
- the term
- the rent
- any obligation on the tenant to build, and by when
Registering a leasehold
The land may change hands during a long lease. A tenant protects the lease by registering it with the National Land Survey (Maanmittauslaitos, MML). A leasehold can be registered when:
- it is for a fixed term
- the tenant may transfer it without the owner's permission
- the tenant owns buildings on the land, or may build them
Registration costs €172, at the time of writing. Once registered, the leasehold can be used as security for a mortgage in the same way as a property — see getting a mortgage in Finland.
Selling a leasehold
A registrable leasehold can usually be sold on without the landowner's agreement unless the lease forbids it. The buyer takes on the lease as it stands, so read it carefully: the years left to run weigh heavily on the price, and ground leases are often renewed at the end of the term with a new rent. Check the certificate of mortgages and encumbrances for mortgages that rank ahead of the lease.
The buyer applies to MML to register the transfer no later than six months after the contract is signed, and pays transfer tax before applying.
The purchase itself, for land you own outright, is covered in buying property in Finland.
