Capital gains on selling a home in Finland 2026 — when is the gain tax-free?
The gain on selling your own home is entirely tax-free if you have used the dwelling as your permanent home continuously for at least two years during your ownership. This is the single most important rule when selling a home.
Otherwise the gain is capital income: 30 percent up to 30,000 euros and 34 percent on the part above that. Below are the rules, the two calculation methods and examples.
- 2 years
- own-home exemption
- 30 %
- capital income up to €30,000
- 34 %
- on the part above €30,000
- 20 / 40 %
- deemed acquisition cost
The own-home exemption: the two-year rule
A gain on your own home is tax-free when two conditions are met: you have owned the home for at least two years, and you or your family have lived in it as a permanent home continuously for at least two years during the ownership. The exemption covers the whole gain regardless of its size. Note that it requires permanent residence — the rule does not apply to selling an investment property or a holiday home.
How is the gain calculated?
The gain can be worked out two ways, and the taxpayer uses whichever is more favourable, that is whichever produces the smaller taxable gain. The first is the actual method: sale price minus the acquisition cost minus the expenses of obtaining the gain, such as the broker fee and the transfer tax paid on purchase. This method can also produce a loss.
The second is the deemed acquisition cost, where instead of the real cost a fixed share of the sale price is deducted: 20 percent if the asset has been owned for under ten years and 40 percent if for ten years or more. When the deemed cost is used, no other expenses may be deducted and the result can never be a loss. Only natural persons and death estates may use it.
| Method | Deduction | Other expenses |
|---|---|---|
| Actual | acquisition cost | deductible |
| Deemed, owned under 10 years | 20 % of the sale price | not deductible |
| Deemed, owned 10 years or more | 40 % of the sale price | not deductible |
How much tax
A taxable gain is capital income. Capital income tax is 30 percent up to 30,000 euros and 34 percent on the part above that. The threshold is calculated on your total capital income for the year, not on a single sale. For example, a €45,000 gain with no other capital income is taxed 30 % × €30,000 + 34 % × €15,000 = €9,000 + €5,100 = €14,100.
Losses and small sales
- A loss calculated with the actual method is deducted from capital gains and other capital income.
- Any unused loss carries forward for the next five years.
- A loss is not deductible if the corresponding gain would have been tax-free.
- Gains are tax-free if your total sale proceeds for the year are at most 1,000 euros.
Calculators for this topic
FAQ
When is a gain on selling a home tax-free?
When you have owned the home for at least two years and used it as your permanent home continuously for at least two years during the ownership. The exemption covers the whole gain regardless of size.
How much tax is charged on a capital gain?
A taxable gain is capital income: 30 percent up to 30,000 euros and 34 percent on the part above that. The threshold is calculated on your total capital income for the year.
What is the deemed acquisition cost?
An alternative method where, instead of the real acquisition cost, 20 percent of the sale price is deducted (owned under 10 years) or 40 percent (owned 10 years or more). No other expenses may be deducted when it is used.
Which method should you use?
Whichever is more favourable, that is whichever produces the smaller taxable gain. For long-held assets bought cheaply, the 40 percent deemed cost is often better.
Can a loss on selling a home be deducted?
A loss calculated with the actual method is deducted from capital gains and other capital income and carries forward for five years. However, a loss is not deductible if the corresponding gain would have been tax-free — for example on selling your own home.
Does the exemption apply to a holiday home?
No. The own-home exemption requires permanent residence. A gain on selling a holiday home or an investment property is normally taxable capital income.