Finland Confirms Real Estate Tax Hikes

by Ulrika Lomas, Tax-News.com, Brussels

10 October 2016

The Finnish Government has proposed increases to the municipal property tax next year.

At present, the general property tax on land and real estate not used as a permanent residence is charged at various rates between 0.8-1.55 percent on the taxable value of a property, depending on municipality. This tax will increase to 0.93-1.8 percent in 2017 under the Government's proposals.

In addition, the real estate tax rate for permanent residential buildings will increase from 0.37-0.8 percent this year to 0.41-0.9 percent in 2017.

The tax on undeveloped land earmarked for building will also rise next year, from 1-4 percent to 2-6 percent.

The proposals form part of the Government's 2017 Budget and are estimated to raise an additional EUR50m (USD56m) for the municipalities.

TAGS: tax | property tax | real-estate | tax rates | Finland