Short-Term Rental Income and Taxes in Finland: A Starting Guide for Apartment Owners
Renting out an apartment to short-stay guests can be a rewarding way to earn income from a property you already own. But before the first guest arrives, it pays to understand the basics of how that income is treated for tax purposes in Finland. This guide gives you a friendly, high-level starting point. It is not tax advice, and the rules change over time and depend on your personal situation, so always confirm the current details at vero.fi and talk to a tax professional or your accountant before you make decisions.
Rental income is taxable
The most important thing to know is simple: income you earn from renting out your property is taxable in Finland. This is true whether you rent for a few nights at a time or for longer stretches, and whether you use a booking platform or find guests yourself.
What this means in practice:
- You generally need to report your rental income to the Finnish Tax Administration (Verohallinto).
- Keep track of what you earn and when, including any service fees that platforms deduct before paying you.
- Don't assume that money already passed through a platform is somehow "handled" for tax purposes. The responsibility to report usually still rests with you.
Because the way income is taxed can differ depending on the size and nature of your activity, it is worth getting clarity early rather than sorting it out at filing time.
Renting as a private person vs. as a company
How you are set up matters. Broadly, there is a difference between renting as a private individual and renting through a company you own or operate.
- As a private person, rental income is typically handled within your personal taxation. This is the most common starting point for owners with one apartment.
- Through a company, the income, expenses, and obligations are handled at the company level, which brings different accounting and reporting requirements.
There is no single "right" choice. The best structure depends on how many properties you have, how active the operation is, your other income, and your long-term plans. This is exactly the kind of question worth raising with an accountant before you scale up.
Expenses and deductions may reduce taxable income
Good news for owners: the tax you pay is generally based on your profit, not your total turnover. That means allowable expenses connected to the rental activity may be deductible, reducing the amount of income that is taxed.
Typical examples of costs owners ask about include things like cleaning, maintenance, certain supplies, and management fees. Whether a specific cost is deductible, and to what extent, depends on the rules and your circumstances, so check the current guidance rather than guessing.
The practical takeaway: save your receipts and records. A deduction you can't document is a deduction you may not be able to claim.
Don't forget VAT
Short-term accommodation is treated differently from ordinary long-term residential renting, and in some cases VAT (value-added tax) may apply to short-stay accommodation services. The thresholds and details change, so we won't quote a rate here.
If you are renting on a more business-like, hotel-style basis, VAT is one of the first things to check with a professional. Getting this right from the start is far easier than correcting it later.
Why record-keeping is everything
If there is one habit that makes tax season painless, it is keeping clean, organised records from day one. That means knowing, month by month:
- How much income you received
- What fees and costs were deducted
- What expenses you paid that may be deductible
This is where working with a management company can quietly make life easier. At Easy Host, owners receive clear monthly statements that lay out income and costs in one place, so when it's time to report your taxes or hand figures to your accountant, the numbers are already tidy and traceable. It doesn't replace professional tax advice, but it removes a lot of the guesswork and late-night spreadsheet hunting.
Short-term renting can be genuinely worthwhile. Start by understanding that the income is taxable, keep good records, and lean on the right people, your accountant for tax decisions, and a trusted partner for the day-to-day, so you can enjoy the upside with confidence. And remember: always verify the current rules at vero.fi.