kiinteistöverojen

Kiinteistöverot are property taxes levied on real estate within Finland. They are a principal source of local government revenue, funding services such as public schools, road maintenance, parks, and emergency services. The tax system differentiates between residential and non‑residential property, applying distinct valuation methods and rates for each category.

Valuation of property is performed annually by the Finnish Tax Administration (Verohallinto). For residential properties the tax base is usually a percentage of the cadastral value, which is derived from recent comparable sales and a purely market‑based assessment. For non‑residential buildings the valuation considers revenue potential, physical condition, and capital costs. The tax rate is set by each municipality and can vary widely; it is expressed as a percent of the assessed value. Additionally, municipalities may introduce a property tax surcharge for luxury homes or high‑value property.

Certain exemptions exist to relieve the tax burden. Owners of low‑income housing may qualify for reduced rates; properties used for specific public purposes may be exempted entirely. In addition, a modest tax holiday during the first year of ownership can reduce the immediate tax burden for new homeowners. These exemptions are regulated through municipal ordinances and can be modified through local elections.

Finland introduced a significant reform in 2008, separating the tax base into two components: a "value component" and a "use component". The purpose was to adjust the tax to reflect both property appreciation and the economic benefit to society from different types of land use. The reform also increased the transparency of tax calculations and reduced the potential for tax avoidance.

The revenue collected from kiinteistöverot is redistributed at the municipal level. It supports essential public services and aligns with Finland’s social policy goals of widespread access to high quality public infrastructure. The system is subject to periodic review to adapt to changing economic conditions and evolving municipal budgets.