Control of Foreign Ownership Tightens

In Finland, real estate transactions and certain corporate acquisitions by foreign private individuals and companies require prior approval by the relevant ministry. The deterioration of the general security situation has tightened supervision, especially in real estate acquisitions. On 10 December 2024, the Ministry of Defence banned two real estate acquisitions by Russian citizens. The Government is drafting a legislative proposal to further restrict real estate acquisitions by Russian citizens.

Buyers from outside the EU and EEA need permission from the Ministry of Defence to acquire real estate in Finland. In 2024, the Ministry of Defence has already banned at least thirteen real estate transactions by buyers from outside the EU and EEA, whereas only sporadic negative decisions have been issued in previous years. The prohibited transactions have been made by both private individuals and companies. The transactions were assessed as threatening national security and complicating the organisation of national defence or the monitoring and safeguarding of territorial integrity. A transaction may also be banned if the contemplated use of the property is implausible.

Buyers from outside the EU and EEA who acquire at least a 10% stake in a critical Finnish company need permission from the Ministry of Economic Affairs and Employment. Even non-Finnish EU and EEA buyers must obtain permission when the target company operates in the military sector. Applying for permission is mandatory when the Finnish target is active in military or dual-use sectors or if the target provides critical services to certain Finnish security authorities. Acquisitions of other critical companies can be filed voluntarily. If necessary, the Ministry can prohibit acquisitions by foreign owners that would jeopardise an overriding national interest.