If your transfer tax return or your payment is overdue
If your transfer tax return or your payment is overdue, the Tax Administration will impose penalty charges. In the same way, a penalty charge is also imposed for late filing of a request for registration of title.
The return is not submitted by its deadline date: Late fee or a punitive tax increase
If you file the transfer tax return late, you must pay either a late-filing penalty or an increased tax. The above consequences of lateness may be imposed when the date of the contract is 1 November 2019 or later. The amount you must pay depends on how many days the tax return is late.
If the transfer tax return is max. 60 days late
If you file less than 60 days late (or exactly 60 days late), you must pay a late-filing penalty. We will send a specific decision letter on the penalty charge with instructions for payment.
The amounts to be imposed are:
- €50 for individuals and estates of a deceased person
- €100 for other taxpayers and for third parties that have the obligation to file transfer tax (such as limited-liability companies).
For example, if a self-employed individual works as a realtor and fails to submit the return on time, the amount would be €50. However, if the realtor is a limited-liability company, it would be €100.
Please note that a penalty charge would be imposed also in cases where a taxpayer has already filed their transfer tax return, and later sends a new return to replace the first one, max. 60 days late, and the effect of the corrected transfer-tax calculation is that the tax goes up.
Example: On 1 September, Jarmo acquired the shares of a housing company that entitle him to apartment number 1. The price was €200,000. Jarmo files his transfer tax return in MyTax by 1 November, not missing the deadline. However, in December, Jarmo becomes aware that he did not include the loan balance of €150,000 in the transfer tax return. The base of transfer tax is the price and the balance of the housing-company loan combined. Jarmo sends a new return to replace his original transfer tax return as soon as he can, i.e. within 60 days from the original deadline. The Tax Administration will impose a late filing penalty of €50.
If the return is more than 60 days late
You will have to pay a punitive tax increase if
- You have not filed a transfer tax return
- You file the transfer tax return more than 60 days late
- You receive a Tax Administration’s request for additional information, and make corrections to your original transfer tax return after that
Please note that a penalty charge would also be imposed in cases where a taxpayer has already filed their transfer tax return, and later sends a new return to replace the first one, max. 60 days late, and the effect of the new return is that the transfer tax grows higher.
You may also have to pay a punitive tax increase if the transfer tax return is incomplete or inaccurate.
The punitive tax increase is usually 10%. The increase may also be lower (2% or 5%) or higher (15–50%). How much your tax is increased depends on the type of negligence.
However, the punitive tax increase is always at least
- €75 for individuals and estates of a deceased person
- €150 for other taxpayers and for third parties that are accountable for transfer tax
Before tax increase is imposed, you will receive a letter from the Tax Administration informing you of it and asking about your response.
You make an overdue payment: late-payment interest
If you do not pay your transfer tax on time, you must pay interest. In 2021, the interest rate is 7%. It is your responsibility to add the interest, on your initiative, to the transfer tax that you are paying after its due date. If you pay in MyTax, the interest is included in the sum automatically. Use the late-payment calculator to work out the exact amount.
Another situation where you must pay interest is if you applied for registration of your title or lease in time but you paid the transfer tax late.
Note: If you have any questions about payments, call our service number 029 497 026 (local network charge/mobile charge). If you have any other questions about transfer tax, please contact the Finnish Tax Administration’s transfer tax service number on 029 497 022 (local network charge/mobile charge).
Registration request is submitted late: punitive tax increase
If you have not applied for the registration of your title to a real estate unit or lease in time, you will have to pay an increase. The transfer tax is increased by 20% for each six-month period that begins. However, this is only done up to a maximum of one hundred percent.
You can take care of the reporting and payment of punitive tax increases in MyTax. If you have not paid the increase on your initiative, it will be imposed by the Tax Administration simultaneously when the missing amount of transfer tax is imposed. In some cases, the Tax Administration may send you a special decision only on the punitive tax increase.