Finland proposes ban on real estate sales to Russians amid security concerns
The Finnish Ministry of Defense wants to introduce a total ban on selling real estate to Russian citizens, arguing that such purchases can be used in crisis situations and threaten the country's security. "The ban will prevent destabilizing Finland in a difficult situation," said Minister Antti Häkkänen.
On Monday, the Ministry of Defense submitted for consultation a draft amendment to the law. Under this amendment, authorities will be able to refuse to issue a permit for the purchase of real estate to citizens of a country that has been recognized as "violating the integrity, sovereignty, and independence of another state or that may pose a threat to Finland's security." The ban would also apply to legal entities based in the territory of such a country.
Trading has gotten out of control
The draft does not directly refer to Russia, but in practice, due to the current security situation in Europe and the ongoing armed aggression of Russia against Ukraine, the proposed regulations would primarily concern Russian citizens. It is expected to reach parliament later this year.
"Finland must ensure that there are no weak points in society that can be exploited by hostile forces," Häkkänen argued at a press conference in Helsinki.
“After Finland joined the EU, it was thought that globalization only brought benefits. At that time, in the case of real estate transactions, perhaps a certain realistic approach was lost, and the trade has gotten out of control,” he admitted.
Russians interested in real estate in Finland
From 2015 to 2020, Russians bought about 150 to 200 properties in Finland annually. Previously, there were even more such transactions – about 300-600 annually in 2011-2014. In 2021, there were about 220.
After Russia's armed invasion of Ukraine in February 2022, the number of real estate purchases by Russians in Finland dropped but then quickly increased, among other reasons, because owning real estate in Finland was entitled entry to the country. There was also a phenomenon of multiple individuals sharing a single property. In total, in 2022, Russians acquired more than 300 properties.
In the last two years, these transactions have dropped again. 2023 there were over 100, and in the first half of 2024, about 70. The main reasons are EU sanctions, bank payment difficulties, and the closure of Finland's eastern border.
Since 2020, when the Ministry of Defense issued a permit for the purchase of real estate in Finland by entities outside the EU, Russians have been the largest group applying for such a permit. Over several years, the Ministry of Defense has issued several negative decisions, citing threats to national security.
Russians have shown great interest in plots and houses near the Finnish-Russian border for years. The Finnish media's attention is focused on luxurious properties and real estate on the islands off the coast of Finland owned by people of Russian descent.
