Finland for US citizens

Climate and Weather:

• Finland experiences a blend of maritime and continental climate. As a result, its weather can vary considerably.
• Winters are cold, with average temperatures in January hovering between -25°C to -30°C in the northern region and about -5°C in the southernmost part. Snow is common in winter and can last from late November until April.
• Summers are relatively short but can be warm, especially in the southern regions. In July, average temperatures range from 20°C to 25°C. Due to its location, Finland experiences the “Midnight Sun” in the north, where the sun does not set for several weeks in summer, and “Polar Nights” in winter, where the sun does not rise for several weeks.

Religion:

• The majority of Finns belong to the Evangelical Lutheran Church of Finland, which is the state church. However, while a significant number are members on paper, regular church attendance is relatively low.
• There’s also a smaller Orthodox Christian minority.
• Over the past decades, there’s been an increase in other religions due to immigration, as well as a rise in those who are non-religious or identify as atheist or agnostic.

Demographic:

• The population of Finland is predominantly ethnic Finns.
• There are also the Sámi, an indigenous people, who primarily reside in the northern region of Lapland.
• As of the last few decades, there’s been a gradual increase in immigrants from various countries, leading to greater ethnic diversity.

Political System:

• Finland is a parliamentary republic.
• The president is the head of state, with a role that’s largely ceremonial but with some powers in foreign and defense policy.
• The prime minister is the head of government and exercises executive powers.

The Finnish Parliament, or Eduskunta, is unicameral and is responsible for legislative duties.

Medium Income:

• The median gross monthly earnings for full-time employees in Finland was approximately €3,400. However, this figure is subject to change, and I recommend checking a current and reputable economic source for the most recent data.

Landscape:

• Finland is often called “the land of a thousand lakes,” but it actually has around 188,000 lakes! These, along with vast forests, define much of its landscape.
• It’s relatively flat with some hills and a few mountainous regions in the northwest, close to the border with Norway.
• Coastal areas, especially in the southwest, have an archipelago of thousands of islands.

Living expenses in Finland can vary based on factors like location, personal preferences, lifestyle, and the size of the household. Larger cities, particularly Helsinki, tend to be more expensive than smaller towns and rural areas. Here’s a general overview of approximate living expenses in Finland:

Housing (renting an apartment):

• Helsinki (city center): €1,200 – €2,000 for a one-bedroom apartment.
• Helsinki (outside city center): €800 – €1,400 for a one-bedroom apartment.
• Other cities (city center): €700 – €1,200 for a one-bedroom apartment.
• Other cities (outside city center): €500 – €900 for a one-bedroom apartment.

Utilities (electricity, heating, cooling, water, garbage):

• For an 85 m2 apartment: €70 – €150 per month, depending on the season.

Internet:

• €15 – €30 per month for a basic broadband connection.

Food:

• A basic meal in an inexpensive restaurant: €10 – €15.
• Monthly groceries for a single person: €200 – €300.

Transportation:

• Monthly public transportation pass: €50 – €90, depending on the city.
• Gasoline: Approx. €1.4 – €1.6 per liter.

Leisure Activities:

• Cinema ticket: €10 – €15.
• Monthly gym membership: €30 – €50.

Healthcare:

While many healthcare services are publicly funded and relatively affordable, there might be some out-of-pocket costs. A doctor’s visit fee can range from €20 – €50, though rates vary depending on the type of service and the location.

US citizens traveling to Finland for short stays of up to 90 days within a 180-day period for tourism, business, or family visits usually do not require a visa, as Finland is part of the Schengen Area. However, specific requirements might change due to various reasons, including health crises, diplomatic considerations, and others.

Here are the general requirements and considerations:

Passport:

• Must be valid for at least three months beyond your planned date of departure from the Schengen area.
• Should have at least two blank pages for stamping.

Return Ticket:

• Proof of onward or return travel may be required upon entry.

Proof of Sufficient Funds:

• You might be asked to demonstrate that you have enough money to cover your stay. The amount can vary, but generally, a few hundred euros per week should suffice.

Travel Insurance:

• It’s recommended to have travel insurance covering any potential medical expenses, emergencies, or repatriation. Some countries in the Schengen Area do require such insurance upon entry, although Finland might not strictly enforce this for US citizens.

Health and Safety Considerations:

• Due to the COVID-19 pandemic, there have been various travel restrictions and requirements worldwide. Requirements such as negative COVID-19 test results, quarantine upon arrival, or vaccination might be in place. This situation is fluid and can change frequently.

Length of Stay:

• Remember, as a US citizen, you can stay in the Schengen Area for up to 90 days in any 180-day period without a visa. If you plan to stay longer or work/study, you’ll likely need a visa or residence permit.

Other Requirements:

• Some travelers might be asked to provide proof of accommodation, like hotel bookings, or an invitation from a host in Finland.

Always check the current requirements before your trip by consulting the Finnish consulate or embassy’s website, or the official website of the European Union. Travel advisories from the US Department of State can also provide up-to-date information for US citizens planning to travel abroad.

Buying property in Finland as a US citizen (or any non-EU/EEA citizen) is generally possible, but there are certain conditions and procedures to be aware of:

Permission from the Ministry of Defence:

• Non-EU/EEA citizens may need permission from the Finnish Ministry of Defence to buy property. This requirement often applies especially if the property is located in certain areas close to Finland’s borders.
• However, in many urban areas or popular destinations, this is typically just a formality.

No Restrictions on Type of Property:

• There are no general restrictions on the type of property a foreigner can buy, whether it’s residential, commercial, or land.

Real Estate Agent:

• If you’re unfamiliar with the Finnish property market, it’s advisable to work with a reputable local real estate agent. They can guide you through the process, from finding a property to closing the deal.

Legal Aspects:

• Property transactions in Finland are quite transparent and secure. Once you decide on a property, a purchase agreement is signed and a deposit (usually 4% of the purchase price) is paid. The final sales contract is signed at a later date, often in front of a notary.
• After the transaction, the change of ownership should be registered at the National Land Survey of Finland.

Financing:

• Non-residents can get financing from Finnish banks, but the conditions might be different than for residents. Typically, you may need a larger down payment and the interest rates might be slightly higher.

Taxes and Fees:

• When buying property, you’ll have to pay a transfer tax. As of 2021, for old properties, the tax is 2% of the purchase price or the property’s value, whichever is higher. For new properties, the tax is 1.6%.
• There are also annual property taxes based on the municipality and the type of property.

Consider Residency Implications:

• Owning property in Finland doesn’t grant you residency. If you wish to live in Finland for extended periods, you’ll need to apply for the appropriate residence permit.

Maintenance and Utilities:

• If you’re buying an apartment in a housing company (which is common in Finland), be aware of monthly maintenance fees. These fees cover things like building maintenance, heating, and water. Always ask about these costs when considering a property.

If you’re seriously considering buying property in Finland, it’s a good idea to consult with a local attorney or real estate expert who can provide guidance tailored to your specific situation.

Finland does not have a Golden Visa program similar to those in countries like Portugal, Spain, or Greece, where significant real estate investment or other forms of financial investment grant investors and their families residency or a path to citizenship.

However, Finland does have various paths to residency for other reasons:

Work: If you receive a job offer from a Finnish employer, you can apply for a work-based residence permit.

Study: Foreign students accepted into Finnish universities can apply for a student residence permit.

Family ties: If you have close family in Finland, such as a spouse, you might be eligible for a residence permit on the basis of family ties.

Entrepreneurship: Finland offers residence permits for entrepreneurs, though the criteria can be stringent. You’d typically need to show that your business is viable, beneficial for Finland, and that you can support yourself.

Other categories: There are other specific categories like research, internship, or seeking asylum.

For all categories, you’d generally need to fulfill the residence requirements, demonstrate integration into Finnish society, and potentially pass a language test to progress from residency to permanent residency and eventually citizenship.

It’s important to always check current and official sources, such as the Finnish Immigration Service, when considering relocation or investment, as policies and opportunities can change over time.

Obtaining a mortgage or financing for property in Finland as a US citizen is possible, but there are certain conditions and considerations to keep in mind:

Bank Requirements:

• Finnish banks can be conservative in their lending practices, especially towards non-residents. Typically, banks might require a larger down payment from non-residents compared to Finnish citizens or EU/EEA residents. This down payment can range from 20% to 40% or even more of the property’s value.
• The bank will also assess your creditworthiness, income, existing debts, and the viability of the investment.

Interest Rates:

• Interest rates for mortgages in Finland have historically been relatively low, but they may vary depending on the bank, the duration of the loan, and other factors. As a non-resident, the interest rate offered to you might be slightly higher than what’s offered to residents.

Documentation:

• Proof of income is essential. You’ll need to provide documentation about your earnings, typically for the last 2-3 years. This can include tax returns, pay slips, or proof of other sources of income.
• Information about any existing debts or financial commitments.
• Details about the property you intend to purchase.
• A personal identification number or equivalent might be needed. In some cases, the bank might assist you in obtaining one.

Loan Duration:

• Mortgages in Finland can have long terms, often up to 25 years or more. The exact duration will depend on your age, financial situation, and the bank’s policies.

Currency Considerations:

• If your income is in US dollars but your mortgage is in euros, consider the potential currency risk. Fluctuations in exchange rates can impact your effective repayment amounts.

Legal Assistance:

• It might be beneficial to engage a local lawyer or notary to help with the property buying and financing process. They can ensure that all legal aspects are correctly handled and can also assist in communication with the bank.

Mortgage Broker:

• If you find the process daunting, you can also consider using a mortgage broker who is familiar with the Finnish market and can assist international buyers.

Life Insurance:

• Some banks might require you to take out life insurance as a condition for the mortgage, ensuring that the loan is covered in case of unforeseen circumstances.

Always ensure that you understand all terms and conditions of any mortgage or financing agreement in Finland. If in doubt, seek advice from financial professionals familiar with the Finnish property market.

Rental income potential in Finland depends on a variety of factors, including the location of the property, its condition, local demand for rentals, and broader economic factors. Here’s an overview:

Location:

• Helsinki and Greater Helsinki Area: The capital and its surrounding areas have the highest demand for rental properties, with Helsinki being the most expensive city. Downtown or popular neighborhoods like Eira, Kallio, and Punavuori can command premium rents. The presence of universities, businesses, and foreign embassies in Helsinki also keeps rental demand steady.
• Other Major Cities: Tampere, Turku, Oulu, and Espoo have considerable rental demand due to universities, businesses, and local amenities.
• Rural Areas: Rental demand and consequently rental income potential decrease in more rural and remote areas.

Type and Condition of Property:

• Modern apartments with amenities, especially in city centers or near transport hubs, can command higher rents.
• Furnished apartments might have higher rental yields, especially if targeting short-term or business travelers.
• Houses or larger properties outside city centers may not have as high a rental yield percentage-wise but can still be lucrative in absolute terms, especially if there’s something unique about them, like a lakeside location.

Target Demographic:

• Short-term or vacation rentals can bring higher per-day rates, especially in tourist areas or major cities. Websites like Airbnb can provide insights into nightly rates. However, always check local regulations concerning short-term rentals.
• Student housing near universities can be lucrative, especially in cities with significant student populations.

Economic Factors:

• The broader economic climate in Finland impacts rental demand and potential income. A thriving economy tends to boost rental demand, especially in cities with job growth. Conversely, economic downturns can depress rental prices and demand.

Rental Yields:

• Gross rental yields — which is the annual rental income as a percentage of the property purchase price — ranged from 3% to 5% in major Finnish cities, with Helsinki usually on the higher end of that range.

Tax Considerations:

• Rental income is taxable in Finland. Deductions can be made for related expenses like property maintenance, management fees, and interest on loans used to purchase the property. It’s essential to familiarize yourself with Finnish tax laws or hire a local accountant to ensure compliance and optimize tax obligations.

Property Management:

• If you’re not residing in Finland, consider the costs and logistics of property management. Hiring a local property management company can help deal with tenants, maintenance, and other issues but will come at a cost.

Before purchasing a property in Finland with the aim of earning rental income, it’s a good idea to conduct thorough research or consult with local real estate professionals to get a realistic estimate of potential returns.