Government submits to Parliament bill on restricting real estate transactions by Russians

On 6 February 2025, the Finnish Government submitted to Parliament a proposal for legislation banning foreign real estate acquisitions. Permits would not be granted to persons whose country of nationality is waging a war of aggression and may pose a threat to Finland's national security. This ban would also apply to entities who are domiciled in the territory of such a country or owned or influenced by citizens or entities of such a country.

"The objective of this bill is to restrict the possibilities of Russians to buy real estate in Finland. Russia poses a persistent security threat in Europe, and real estate can be exploited to exert hostile influence. Such activities can target the Finnish economy, infrastructure, businesses and security of supply or Finland's capacity to provide security for its population. We made this bill because we want to restrict all possible risks to the security of people in Finland," said Minister of Defence Antti Häkkänen.

The introduction of the ban on real estate acquisition would reduce the number of permit applications by people whose country of nationality is covered by the ban. This would free more resources for the processing and scrutiny of applications.

However, the ban would not apply to persons who hold a permanent residence permit of Finland or a long-term resident's EU residence permit granted by Finland. Such persons would be covered by the current Act on Permit Requirements for Certain Real Estate Acquisitions, and they would be able to buy real estate in Finland if granted a permit by the Ministry of Defence.

To minimise the risk of dummy purchasers being used to circumvent the ban, the Ministry of Defence could impose an obligation to apply for permit if it suspects that a dummy is being used. Information exchange between the authorities would also be further intensified.

The legislative 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.

Inquiries: Kosti Honkanen, Senior Specialist for Legal Affairs, Chair of the legislative project, Ministry of Defence, tel. +358 295 140 607, kosti.honkanen(at)gov.fi, Joonas Laito, Senior Specialist, tel. +358 295 140 071, joonas.laito(at)gov.fi, and Sara Kajander, Director of Unit, tel. +358 295 140 080, sara.kajander(at)gov.fi

Requests for interviews with Minister Häkkänen: Dani Niskanen, Special Adviser, tel. +358 41 544 4967.