2019 Finnish parliamentary election

In the opinion of the association, the government should go forward with the following policies during the current term:

1. Development of the housing tax system

  • Taxation of capital income should not be increased.
  • Repair and maintenance of existing housing stock should be encouraged by allowing repair costs to be deducted from rental income the same year the costs were paid.
  • All types of minor investment ventures should be encouraged with a tax exemption of 1,000 euros on all capital income.
  • Transfer tax should be gradually retired.
  • The deemed acquisition cost regarding capital gains tax on long-term investments should be reset to 50 percent.

2. Increasing the housing supply

  • The Housing First model and various other models supporting social residency should be promoted through taxation and land use, housing and transport (MAL) agreements.
  • Supporting traffic-related solutions and traffic investments should become more pronounced in state’s housing policy.

3. Making the subsidization system fair

  • Any housing benefits should be given to those who genuinely need them by using income and asset limits.
  • ARA apartments should implement a model where the rent is increased to approach market level as tenant’s income grows.
  • Subsidization is mainly organized by one transparent demand-based subsidy.

Reducing taxation of capital income would increase housing supply.

According to a 2019 poll by the Finnish Landlord Association, 55% of respondents would consider acquiring new investment property if capital gains tax was reduced.

The tax has been increased for the past 20 years: under 30,000 euro income has a tax rate of 30%, and any income surpassing 30,000 euros is taxed at 34%.

13% of respondents would expand their operations if apartments were more readily available.