A foreign investor may invest in Finnish real estate property through a local company (such as an Osakeyhtiö (Oy)), a local partnership (such as a Kommandiittiyhtiö (Ky)) or a non-resident company or partnership. There are no exchange controls and no special investment laws governing foreign investments.
The standard corporate income tax rate in Finland is 24.5% from 1 January 2012 onwards. In computing the tax liability in respect of rental income, deductions will generally be available in respect of items such as depreciation, maintenance, management and administration, interest costs and real estate tax.
Finnish real estate property is often held by a Finnish mutual real estate company (MREC). An MREC is a limited liability company, the shares of which are attributable to certain parts of the real estate property, and the shareholder of the MREC holds/controls the respective parts of the real estate property through the shares (special provisions in the MREC’s articles of association are included in this respect). In case of an MREC, rental income will accrue to the shareholder of the MREC, whereas in case of a regular real estate company, rental income will accrue to the real estate company.
Source : PWC