Purchase of a building without the land
You can buy just the building or structure, without the contract including any land, ground or a transferable leasehold right to the ground. Pay the transfer tax on the sales price (or other remuneration). As the buyer, you are required to calculate and pay the transfer tax on your initiative.
When you acquire a garden cabin or summerhouse in an allotment area, the contract only concerns the building, not the land. You also have the right to lease the plot where the cabin is located. In a case like this, you will only pay transfer tax on the part of the sales price that concerns the building – that is, transfer tax on the building's current value. Enter the cabin's value in the deed of sale as a separate item. See more details on how the value of a building is determined.
Calculate the tax
The rate of transfer tax is 4% on the price paid, or on the value of other consideration or compensation.
You pay 4% tax on the garden cabin or summerhouse, and only for the building, not the land.
You can use the transfer tax calculator to help with the calculation.
File the return
File the transfer tax return in 6 months from the date when you signed the deed of sale or other contract.
The paper-printed form can be used by individual taxpayers, general partnerships and limited partnerships.
The following documents must be enclosed with the transfer tax return:
- a photocopy of the signed deed of sale or other contract
- the seller's and buyer’s statement on the cabin’s or summerhouse’s value, unless this is already specified in the deed of sale.
You do not have to apply to the National Land Survey of Finland for registration of title.
The correct base for the tax is the fair market value on the date when the cabin is transferred or sold. “Fair market value” means its probable selling price. However, if you pay an “overprice”, the entire amount paid will be treated as the base.
The deed of sale must specify the building's value separately. When the taxpayer who files the transfer tax return has proposed a price for the building, the Tax Administration will check it according to its set of valuation principles. Fair market values for buildings are dependent on its age, size, condition and level of fixtures and fittings, etc. If the sales price additionally includes movable property, its quantity and quality must be specified as well.