Finland's housing companies: why you buy shares, not a flat

When you buy a flat in Finland, you do not buy the flat itself. You buy shares in a housing company - an asunto-osakeyhtio - and those specific shares entitle you to possess a specific apartment in the building the company owns. The system is governed by the Limited Liability Housing Companies Act (1599/2009), and it covers most Finnish flats and many terraced houses.

This catches out buyers used to freehold or leasehold systems, but it is well regulated and works smoothly. The practical differences show up in three places: the price (there are two of them), the monthly charges, and the paperwork after completion.

What you actually own

A housing company is a limited company whose purpose is to own and manage residential buildings. Each apartment is tied to a numbered block of shares; owning those shares gives you the exclusive right to possess that apartment. InfoFinland, the Finnish public authorities' information service, describes housing shares as homes in blocks of flats or terraced houses, while buying a detached house normally means buying real estate - the building and its plot.

You can sell your shares freely, rent the flat out, and vote at the company's general meeting in proportion to your shares. The company, run by a board of shareholders and usually a professional building manager, looks after the building's structure and common areas, funded by the charges shareholders pay.

Shares = the right to possess a specific apartment
The housing company owns the building and the common areas
Governed by the Limited Liability Housing Companies Act (1599/2009)

Two prices: selling price and debt-free price

Finnish listings show both a selling price (myyntihinta) and a debt-free price (velaton hinta). Housing companies often carry loans - for example for a pipe renovation or because the building is new - and a share of that company loan is allocated to each apartment. The debt-free price is the selling price plus your apartment's share of the company's loans.

The distinction matters for tax: according to InfoFinland, transfer tax on housing shares is calculated on the debt-free price, not just what you hand to the seller. Always ask how much company loan is attached to the shares and whether it can be paid off early.

Selling price: what you pay the seller
Debt-free price: selling price + the flat's share of company loans
Transfer tax is charged on the debt-free price

Monthly charges: hoitovastike and rahoitusvastike

Every shareholder pays a monthly maintenance charge (hoitovastike) that funds the upkeep of the building - administration, heating of common areas, repairs and so on. If the company has debt, shareholders whose apartments carry a loan share also pay a financial charge (rahoitusvastike) covering interest and repayments on the company loan.

On top of the charges you pay your own mortgage, electricity and usually a water fee. InfoFinland notes that a home typically serves as collateral for about 70 per cent of its value, with the rest covered by savings, a state guarantee or other security.

Hoitovastike: maintenance charge paid by all shareholders
Rahoitusvastike: financial charge, only if the company has debt allocated to your flat
Budget for charges plus your own mortgage and utilities

Tax and registration when you buy

Transfer tax on housing company shares is 1.5 per cent, against 3 per cent for real estate, according to the Finnish Tax Administration. You file a transfer tax return and pay the tax after the deal; vero.fi has an English-language calculator and filing instructions.

Ownership of shares is increasingly recorded electronically. The National Land Survey of Finland maintains the Residential and Commercial Property Information System, which records apartment ownership, pledges and possession restrictions. Once a housing company's share list has been transferred into the system, a buyer must apply to register their ownership there; paper share certificates are being phased out as part of the digitisation.

Transfer tax: 1.5% of the debt-free price
File the transfer tax return via vero.fi
Register your ownership with the National Land Survey once the company's share list is in the electronic system

Why the system suits foreign buyers

The share system has a useful side effect for non-EU and non-EEA buyers: the Ministry of Defence permit that applies to Finnish real estate does not apply to housing company shares. A buyer from outside the EU can therefore purchase a flat in Helsinki, Tampere or Turku without any permit, while a detached house on its own plot would require one.

Before committing, read the company's latest financial statements and the manager's certificate for the apartment, and check what renovations are planned - a coming pipe renovation can add significantly to future charges. Habio's Finland area guides and listings show debt-free prices and charges so you can compare like with like.

No Ministry of Defence permit needed for share purchases
Lower transfer tax than real estate (1.5% vs 3%)
Check company finances and planned renovations before you buy

Frequently asked questions

What is an asunto-osakeyhtio?

A Finnish housing company: a limited company that owns a residential building. Buying a flat means buying the company shares that entitle you to possess a specific apartment, under the Limited Liability Housing Companies Act (1599/2009).

Do I really own my flat in Finland?

You own shares that give you a permanent, transferable right to possess the apartment; the company owns the building. You can sell, mortgage and rent out the flat much as an outright owner would.

What is the difference between selling price and debt-free price?

The debt-free price is the selling price plus the apartment's share of the housing company's loans. Transfer tax is calculated on the debt-free price.

What monthly fees do flat owners pay in Finland?

A maintenance charge (hoitovastike) for building upkeep, plus a financial charge (rahoitusvastike) if the company has debt allocated to the flat, plus your own mortgage, water and electricity.

Do foreigners need permission to buy a flat in Finland?

No. The Ministry of Defence permit for non-EU/EEA buyers applies only to real estate, not to housing company shares - which is how most Finnish flats are sold.

Sources

This article is general information, not legal, tax or financial advice. Markets and rules change — verify the current position with official sources before acting. Published 2 August 2026.

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