Working group completes report on prohibition of foreign real estate transactions

A working group, appointed by Minister of Defence Antti Häkkänen, has completed its report on additional restrictions on real estate acquisitions in Finland by parties outside the EU and the EEA. The group’s assignment was to assess the possibility of imposing a ban on foreign real estate transactions and its effects. 

The assignment was based on the tense security situation and the potential of foreign-owned real estate of being exploited to prepare hostile action against the Finnish society. Such action can be used against Finnish economy, infrastructure, business opportunities and security of supply or against Finland’s autonomy and capacity to provide security for its population.

According to the working group’s report, no permit to buy real estate should be granted to persons whose country of nationality has been found by the European Union to be in violation of the territorial integrity, sovereignty and independence of another country or whose country of nationality may be a threat to Finland’s national security. This prohibition would also apply to entities who are domiciled in the territory of such a country or who are owned or influenced by citizens or entities of such a country. Further provisions on such countries would be issued by government decree.

The prohibition would not apply to persons who hold a permanent residence permit of Finland at the time of the transaction or a long-term resident’s EU residence permit granted by Finland. Instead, the current act would apply to such persons. The prohibition would not apply to dual citizens who are citizens of Finland and some other country.

Decisions on the project’s further measures will be made later.

The project is related to the Programme of Prime Minister Petteri Orpo’s Government, which states that the Government will examine the adequacy of the regulation on the acquisition and possession of real estate by parties outside the EU and the EEA. The Government will examine possibilities to engage in more effective ex post facto intervention and control in respect of assets central to the security of society and security of supply.

The report is available in Finnish in the Gateway to Information on Government Projects (PLM005:00/2023).

Inquiries: Kosti Honkanen, Senior Specialist for Legal Affairs, Chair of the Legislative Project, tel. +358 295 140 607, kosti.honkanen@gov.fi and Joonas Laito, Specialist, Vice-Chair, tel. +358 295 140 071, joonas.laito@gov.fi
Requests for interviews with Minister Häkkänen: Dani Niskanen, Special Adviser, tel. +358 41 544 4967.

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