Finland: Changes to taxation of non-residents’ capital gains derived from Finnish real estate

Bill would provide that capital gains derived by non-residents from indirect sales of Finnish real estate are taxable in Finland.

Capital gains derived from Finnish real estate

The Finnish government has introduced a bill that would provide that capital gains derived by non-residents from indirect sales of Finnish real estate are taxable in Finland. Thus far Finland has taxed solely non-residents’ capital gains arising from direct sales of Finnish real estate and shares in real estate-rich Finnish companies.


  • Capital gains arising from the sale of shares, units in corporations, partnerships, and pools of assets with assets that consisted at the time of or in the preceding 365 days before the sale mostly of directly or indirectly held Finnish real estate or shares in Finnish real estate-rich companies would be regarded as taxable Finnish sourced income. However, sales of publicly traded shares and units would not be taxable income received from Finland.
  • The bill would be effective in spring 2023.

KPMG observation

Double tax conventions may limit Finland’s right to tax indirect sales of Finnish real estate. In some conventions, Finland clearly has the taxing right to the indirect sales, while others have limitations and leave room for interpretation.

Non-residents may need to review current investment structures involving Finnish real estate and assess whether the structures include such entities that fall within the scope of the new tax law in case of sale. The assessment must take into account the effect of the applicable double tax convention and the possibility to eliminate double taxation. Possible changes to present holding structures need to be implemented before the changes to the income tax law become effective. The effect of the new rules is also to be taken into account in future investments.

For more information, contact a KPMG tax professional in Finland:

Jussi Järvinen |

Aki Kokko |


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