Finland Bans Real Estate Purchases by Russians Without Residence Permits

On April 11, 2025, the Finnish Parliament approved a new law that bans Russian citizens without Finnish residence permits from purchasing real estate in the country. The law aims to strengthen national security and further regulate foreign ownership, as announced by Finland's Ministry of Defence source.

Although unofficial restrictions have been applied in recent years, the new law codifies the ban, targeting only those without legal long-term residence in Finland. According to Defence Minister Antti Häkkänen, the measure is part of a broader national defence strategy and a response to perceived long-term threats to European security.

Historical Context & Regulatory Evolution

Finland has a long history of controlling foreign property ownership. Until 1993, foreigners could not purchase property without a special permit. After joining the EU in 1999, restrictions were lifted, but security concerns in the 21st century have prompted a gradual reintroduction of controls.

As of January 1, 2020, all non-EU/EEA citizens — and legal entities with more than 10% foreign ownership — are required to apply for Ministry of Defence approval before acquiring property. Authorities can retroactively annul a transaction or refuse it outright, particularly when national security is at stake. Numerous Russian-related transactions have been blocked since 2022, including in regions like Pargas and Kokemäki.

Limited Market Impact

Experts predict limited disruption to the overall property market. Russian ownership peaked in 2008, with 907 transactions. That number declined steadily to just 82 purchases in 2024. According to the National Land Survey of Finland, roughly 3,000 properties are still held by Russian nationals, many of whom have begun divesting in recent years due to legal and border restrictions.

Sensitive Locations Targeted

The law particularly applies to properties near strategic areas such as military zones, border regions, ports, islands, and critical infrastructure. Authorities may now force a sale or confiscate real estate in identified high-risk zones.

Parallel Migration Tightening

Finland is also tightening its migration laws. Reforms include:

Mandatory language and civic exams for citizenship applicants (Finnish or Swedish),

Increasing residency requirement from 5 to 8 years,

Financial criteria and proof of stable income,

Higher administrative fees for passports, IDs, and residence permits.

From 2025, online passport applications will cost €53 and ID cards €63. Temporary protection residence permit renewals will cost €20–40.

Part of a Broader European Trend

The Finnish law aligns with growing EU trends. Latvia, for example, passed similar restrictions on Russian and Belarusian buyers in February 2025. The Czech Republic and Lithuania are also working on legislation to restrict or revoke citizenship and property access for certain foreign nationals.

In this environment, foreign investors — particularly Russian nationals — are advised to monitor ongoing legislative changes closely. The tightening of real estate and migration laws is expected to continue in the foreseeable future unless there is a significant shift in the geopolitical climate.