Buying a cottage and property tax on a holiday home 2026

What a cottage costs now

According to the National Land Survey of Finland's purchase price data, 783 shore cottage sales were made nationwide in January–May 2026, which is 17 % more than a year earlier. The median price of a shore cottage was 90 000 €, 6 % less than a year earlier. Regional differences are large, so compare the asking price with realised sales in the same area.

In Uusimaa the median price of a shore cottage was €185,000, and the most expensive municipalities were Raasepori (€240,000), Kustavi (€212,000) and Heinola (€207,000). Most sales were made in Southern Savo, Pirkanmaa and Northern Savo. In Kymenlaakso the median price fell the most, 34.5% to €85,000. The figures describe completed sales of shore cottages on their own plots, not asking prices.

In addition to the purchase price, budget for annual costs. In KTI's comparison, property tax, electricity and waste management for a standard 50 square metre cottage cost on average 964 € a year in the 25 largest cottage municipalities (May 2025). The sum does not include, for example, water charges, insurance and repairs.

KTI's calculation assumes a 35-year-old wooden building with electricity and a sauna, a 4,500 square metre plot, electricity consumption of 1,000 kWh a year and no winter use. Of the costs, electricity accounted for 57% on average, property tax 38% and waste management 5%. If you intend to use the cottage in winter, electricity consumption is likely to be considerably higher.

Transfer tax and title registration

The buyer of a property pays transfer tax of 3% of the purchase price. If the cottage is a housing company share or a real estate company share, the tax is 1.5%. The tax must be declared and paid before applying for title registration.

Title registration must be applied for within six months of signing the deed of sale. If the deadline is exceeded, according to the National Land Survey of Finland the transfer tax increases by 20 % of the original amount for each half year, and can at most double.

If you use the electronic real estate transaction service, according to the Finnish Tax Administration (Verohallinto) the buyer must declare and pay the tax by the day of the transaction at the latest, because the service submits the title registration application automatically. Applying for title registration late also incurs late-payment interest, even if the tax was paid on time.

Property tax on a holiday home

Property tax is calculated by multiplying the taxable value by the tax rate set by the municipality. A holiday home belongs to the group of other residential buildings, for which the municipality can set a rate between 0.93–2.00%. The range for a permanent residential building is 0.41–1.00%, so the same building usually pays more property tax when used as a holiday home. Land is subject to the general property tax, with a range of 1.30–2.00%.

The taxable value of a building is based on its replacement value, the basis for which is confirmed annually by the Ministry of Finance. The value of the land is based on its area and type.

Property tax schedule

The tax is assessed on whoever owns the property at the start of the year. The 2026 property tax decisions were sent in March 2026, and incorrect information had to be corrected by 14.4.2026. If you buy a cottage mid-year, it is worth agreeing in the deed of sale how the current year's property tax is shared between seller and buyer. Changes during the year are reported the following spring, i.e. the 2026 changes in spring 2027.

Wastewater and other checks

The wastewater regulations for sparsely populated areas also apply to holiday homes. Systems on properties less than 100 metres from a waterbody and on classified groundwater areas had to be in order by 31.10.2019. In other areas the requirements become relevant in connection with major renovations or changes in water use. The age-based exemption does not apply to holiday homes, and every property must have a report on its current system.

Also check the zoning and building rights, road rights, electricity connection and the condition of the buildings. A condition inspection before the purchase helps assess repair needs.

In a property sale, the seller has a duty to disclose known matters, and the buyer in turn must inspect the property carefully. If there are ambiguities or repair needs in the sale, it is worth asking a real estate agent or lawyer for help before signing the deed of sale.

Find a cottage with Cottage Radar

In Cottage Radar you see cottages for sale and the price level of the area. When you find a candidate, ask the seller for the property tax decision, the wastewater report and details of annual electricity and waste management costs before making an offer.

Frequently asked questions

How much transfer tax is paid on a cottage?

For real estate, 3% of the purchase price. If the cottage is a housing company share or a real estate company share, 1.5%.

What is the property tax rate for a leisure home?

The municipality decides the percentage within a range of 0.93–2.00 %. For a permanent home the range is 0.41–1.00 %.

How quickly must the title registration be applied for?

Within six months of signing the deed of sale. A delay raises the transfer tax by 20% every six months.

How much does a lakeside cottage cost?

The median price of a lakeside cottage in January–May 2026 was 90 000 € nationwide (National Land Survey of Finland).

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Sources

The article is general information and does not replace the guidance of an authority, a lawyer or an adviser. Check up-to-date information from the sources.