Currently, non-resident real estate investors are subject to Finnish capital gains tax when making direct disposals of Finnish real estate assets, shares in Finnish mutual real estate companies or Finnish limited liability companies directly holding majority of their assets in Finnish real estate. A draft bill published at the beginning of August is about to extend the capital gains taxation to transfers of entities holding indirectly Finnish real estate.
The new legislation is to be applied from the beginning of 2023. Investors from jurisdictions where tax treaty protection is not available should closely monitor development of the legislation.
