Finland Tax Agency Updates Guidance Clarifying Real Estate Tax Exemption for Agricultural, Forest Land

The Finnish Tax Administration April 29 posted Guidance No. VH/3513/00.01.00/2025, updating guidance on real estate tax exemptions for agricultural and forest land. Topics covered include: 1) forest and agricultural land is exempt, but the tax applies to residential and production buildings, and to areas designated as building land, on farms; 2) properties under two hectares generally don’t constitute independent farms, and case law holds that forest properties under that size are taxable; 3) actual use determines whether a property over two hectares is subject to real estate tax in its entirety, or whether it’s partially or entirely a farm; 4) ...