Finland's property legislation has shifted significantly. Reforms effective from early 2025 tighten the conditions under which non-EU and non-EEA nationals – and certain foreign-controlled entities – may acquire real property on Finnish territory. Foreign owners who completed purchases before the reforms took effect are not automatically exempt from the new compliance obligations that follow acquisition.
Finland's amended real estate legislation introduces a mandatory prior-authorisation requirement for property acquisitions by non-EU and non-EEA nationals and by legal entities with non-EU majority ownership, effective from January 2025. Buyers falling within the defined threshold criteria must obtain a permit from the competent authority before any title deed can be recorded in the lainhuuto- ja kiinnitysrekisteri (Finnish land register). Existing foreign owners of designated categories of property face a compliance review deadline aligned with the first anniversary of the reform's entry into force.
This alert explains who is affected, the applicable thresholds, the compliance deadline, and the immediate steps international companies and investors should take now.
What changed and when it took effect
Finland's revised property transfer rules alter two established aspects of its conveyancing system. First, the prior-authorisation pathway – previously limited to land near militarily sensitive zones – now extends to a broader category of real property across the country. Second, the due diligence obligations placed on sellers and their advisers have been reinforced. Sellers must now verify the purchaser's eligibility status before completion.
The reforms entered into force on 1 January 2025. Two transitional windows apply. Transactions signed before that date but not yet registered in the land register had until 31 March 2025 to either obtain authorisation or unwind. Ongoing holding structures established before the reforms must complete a compliance review by 1 January 2026.
Finland's land register records title deeds and encumbrances centrally. Any property transfer that bypasses the authorisation step will not receive a valid registration entry. An unregistered transfer carries significant legal risk: the buyer's title is vulnerable to challenge, financing against the property becomes unavailable, and re-sale is blocked until the defect is remedied.
The reforms sit within Finland's broader investment screening legislation, which has expanded its reach into real estate as a separate track from general foreign direct investment controls. Practitioners working on Finnish property matters should treat the two tracks as distinct. Clearing one does not automatically satisfy the other.
Who is affected and which thresholds apply
The authorisation requirement applies to the following categories of acquirer.
- Natural persons who are nationals of a state outside the EU and EEA, regardless of their country of residence.
- Legal entities incorporated outside the EU or EEA, or incorporated within the EU or EEA but with majority ownership – directly or indirectly – held by non-EU and non-EEA nationals or entities.
- Investment vehicles, funds, and special purpose vehicles where the controlling economic interest traces to non-EU and non-EEA parties.
- Joint ventures in which a non-EU or non-EEA party holds a blocking minority or material influence over property-related decisions.
EU and EEA nationals and entities with majority EU or EEA ownership are not required to apply for prior authorisation. However, they remain subject to the reinforced due diligence obligations. They must document their eligibility status and retain that documentation for a period specified under Finnish property transfer legislation.
The geographic scope covers all real property in Finland, not only border areas or zones of strategic importance. There is no minimum transaction value threshold: a modest summer cottage and a large commercial warehouse are treated identically under the authorisation rules.
For the compliance review applicable to existing foreign owners, the threshold is whether the ownership structure would have required prior authorisation had the acquisition occurred after 1 January 2025. If yes, the owner must register with the competent authority and submit a disclosure package by 1 January 2026.
For a detailed view of how these rules interact with Finnish tax obligations on property transfers. See our analysis of tax law in Finland. This covers transfer tax, capital gains treatment. Additionally, withholding obligations for non-resident owners.
To receive an expert assessment of your property holding structure in Finland, contact us at info@ferrazwhitmore.com.
Immediate actions for international companies and investors
Foreign owners and buyers should treat the following steps as time-sensitive. Delay carries the risk of a non-compliant holding structure that cannot be regularised without significant cost and potential forced divestment.
- Audit existing holdings. Identify every Finnish real property asset held directly or through a vehicle in which non-EU or non-EEA parties hold a controlling or material interest. Map the ownership chain to its ultimate beneficial owners.
- Assess authorisation exposure. Apply the threshold criteria to each identified holding. Where the structure would have required prior authorisation under the new rules, assume that the compliance review obligation is triggered.
- Prepare the disclosure package. The competent authority requires evidence of the ownership structure, beneficial ownership declarations, and a description of the intended use of the property. Engage local counsel early – assembling notarial deed copies, land register extracts, and corporate documentation takes time.
- Review pending acquisitions. Any transaction currently in negotiation or under a letter of intent must factor in the authorisation timeline. Prior authorisation decisions typically take several weeks to several months. Completion timetables should be extended accordingly.
- Update conveyancing instructions. Instruct advisers handling Finnish property transfers to incorporate eligibility verification and due diligence documentation as a standard step in every transaction, regardless of buyer nationality.
Our real estate practice in Finland covers the full conveyancing process, authorisation applications, land register filings, and compliance reviews for foreign owners. We advise international businesses, investment funds, and high-net-worth individuals on Finnish property matters from initial due diligence through to title deed registration.
For context on how similar regulatory tightening has affected property owners in another EU jurisdiction, our alert on real estate regulation changes in Portugal sets out the parallel developments in the Portuguese market.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our real estate practice supports international companies, institutional investors, and private buyers on property transactions, regulatory compliance, and title due diligence in Finland and across Europe. Our team combines Portuguese civil law expertise with English common law tradition, giving us direct access to both EU regulatory systems and common law enforcement strategies. The firm's real estate attorneys have advised on property transfer and land register matters across civil law systems throughout the EU, including jurisdictions that have recently introduced investment-screening rules for foreign acquirers. Engaging a lawyer in Finland with cross-border real estate experience is particularly important when ownership structures span multiple jurisdictions, as the authorisation and disclosure obligations interact with tax, corporate, and investment screening legislation simultaneously. As an international law firm in Finland advising on Finnish property matters, Ferraz & Whitmore provides a coordinated approach across all relevant regulatory tracks. To discuss your situation, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.