Russian real estate applications in Finland decline amid tightening regulations

In recent years, nearly all Russian real estate purchases in Finland have received positive approvals from the Ministry of Defence. However, the number of applications has significantly decreased. Non-EU or EEA buyers must obtain permission from the Ministry to purchase property in Finland. The Ministry is now paying closer attention to real estate transactions involving Russians, and legislation is already underway to prohibit these purchases entirely. The proposal is expected to be considered by the government early this fall, according to Defence Minister Antti Häkkänen.

For example, a real estate transaction in Sysmä was rejected last April. In 2022, when Russia launched its invasion of Ukraine, Russians applied for permission for 275 property transactions, of which 273 were approved. The Ministry processed more than 850 applications from outside the EU and EEA in 2022 and about 700 in 2023, with 64 applications from Russians processed in the first half of this year. Over the last four and a half years, only ten applications have been denied, six of which involved Russian citizens.

The ministry assessed the most recent rejected application, which involved a 61-year-old businessman with Swiss and Russian citizenship seeking a vacation property on Päijätsalo. His company, which specializes in satellite navigation, has been linked to military applications and is listed on the sanctions list in Ukraine. The decision to deny the property acquisition is not yet legally binding.

The Defence Ministry noted that Russian applications have decreased as trade and traffic across the border have largely stalled due to entry restrictions and financial challenges facing Russian nationals.