Kiinteistönarvonveron

Kiinteistönarvonveron, which translates to property value tax, is a tax levied on the assessed value of real estate. In Finland, this tax is known as kiinteistövero. It is an annual tax paid by property owners. The tax is based on the taxable value of the property, which is determined by the municipality. Municipalities have the authority to set their own tax rates within a legally defined range.

The taxable value is usually calculated based on the market value of the property, taking into account factors such as land area, building size, location, and age. There are typically different tax rates for land and buildings, and sometimes different rates for permanent residences and other types of properties like summer cottages or commercial buildings. The revenue generated from kiinteistövero is a significant source of funding for municipalities, contributing to local services such as schools, healthcare, and infrastructure maintenance.

Property owners receive a tax assessment from their municipality detailing the taxable value and the amount of tax due. Payments are usually made in installments. Exemptions or reductions in kiinteistövero may be available for certain low-income property owners or for properties of historical or cultural significance, although these provisions can vary by municipality. The overall aim of the property value tax is to ensure that property owners contribute to the local community based on the value of the assets they own.