Attention section starts
Save the documents
Keep the contract of sale and other documentation. You will need them if the Tax Administration asks you for additional information.
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The tax exemption for selling your home
The sale of a permanent residence must be reported to the Tax Administration even if it is tax-free. If the sale fulfils a set of requirements, you can sell your home exempt from capital gains tax.
When is the sale exempt from tax?
You can sell your own permanent home exempt from capital gains tax if both of the following requirements are fulfilled at the same time:
- You have owned the house or apartment for at least 2 years.
- During your ownership, you or a member of your family (your spouse or a child under 18) lived in it for at least 2 years on a permanent, continuous basis. Read more about the definition of spouse in taxation.
The sale does not have to take place immediately after you stop living there. For example, you can start renting out the house or apartment for some time before selling it without losing the exemption.
If the sale of the house is exempt, the sale of the land where it is located may be exempt as well if either of the following two conditions is met:
- The land area is maximally 10,000 m2.
- It is situated in a zoning-regulated district and the land area does not exceed a zoning restriction.
Real estate tax in the year of sale
If you sell a real estate unit, such as a detached house, you are still responsible for paying the real estate tax during the year of sale. Read more in the guidance: How changes in the ownership of real estate affect real estate tax.
How to declare the sale of your home
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1
Declare the sale in MyTax during the year of the sale
You can use MyTax to file the required tax return yourself.
Instructions: How to declare the selling of property in MyTax
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2
Check the pre-completed tax return’s information concerning the sale
You will receive your pre-completed tax return in the spring following the sale. You need to check that the information is correct. If there are errors or omissions, you must make corrections or add data to your tax return.
If the sale is taxable
If the requirements listed above for a tax-free sale are not met, any capital gain you receive for selling your home becomes taxable capital income.
How do I know that my sale is not tax-free?
If you submit a return claiming that the sale is exempted from capital gains tax but the requirements are not fulfilled, the Tax Administration will send you a letter requesting further information. After that, you will need to give details on the taxable sales transaction, such as information on miscellaneous expenses you had paid when buying the house or apartment.
Read the instructions submitting a tax return for a sale subject to tax.
Can a loss be deducted?
The loss for selling your own permanent home is not tax-deductible if the capital gain for selling the same home would have been exempt from tax.