Finland to restrict real estate transactions for foreigners

The proposed text is an amendment to strengthen a 2020 law that requires transactions by individuals or companies outside the European Union or European Economic Area (EEA) to be approved by the Department of Defense.

"Of course, the context behind this is Russia's war against Ukraine," Joonas Kontta, a Center Party parliamentarian and member of the Defense Committee, told AFP.

Although the law applies to all non-EU nationals, "it mainly concerns real estate transactions carried out by Russian citizens and the security risks associated with them", Kontta added.

As it stands, the ministry can only intervene if a transaction compromises national defense, territorial integrity or border security.

The new text "broadens the radius" of this mechanism, Joona Lapinlampi, from the legal department of the Ministry of Defense, told AFP.

National security reasons "do not require security to be immediately compromised", he explained.

Thus, the new law could target an individual who would seek to buy a property in the immediate vicinity "of a ministry or a garrison".

The new text would grant more powers to the state to investigate more closely the financing of potential real estate transactions.

Finnish media reported this week on a recent deal in which a Russian citizen sought to buy an old retirement home with around XNUMX rooms near the Niinisalo garrison in the southwest of the country.

Finland's security and intelligence services (Supo) have warned that owners acting on behalf of a foreign state could allow their property to be used to house foreign troops.

According to the Ministry of Defense, the amendment is expected to come into force in early 2023.