Kiinteistöveroprosentti

Kiinteistöveroprosentti refers to the tax rate applied to the taxable value of real estate in Finland, which is used to calculate the municipal property tax. Municipalities set their own kiinteistöveroprosentti within a range defined by national legislation. This allows local governments to adjust their revenue streams to fund public services. The tax is levied on land and buildings. The taxable value is determined by the property's assessed value, which is based on its market value or a fraction thereof, depending on the type of property.

There are different tax rates for various property types. Generally, a lower kiinteistöveroprosentti applies to residential buildings, while a higher rate can be applied to other types of properties, such as permanent structures not used for permanent housing or undeveloped land. Municipalities can choose to set a uniform rate for all taxable properties or differentiate between property categories. The specific percentage chosen by a municipality impacts the amount of property tax residents and property owners pay, and in turn, the municipality's overall budget.

The legislation allows municipalities to set a minimum and maximum kiinteistöveroprosentti. For example, for residential buildings, the rate typically falls within a certain range, and for other taxable properties, a different, often higher, range applies. Property owners receive a tax assessment based on the property's taxable value and the municipality's chosen kiinteistöveroprosentti. This tax is a significant source of income for Finnish municipalities.