Page 56 - DIPLOMATIC PRIVILEGES AND IMMUNITIES IN FINLAND

• Real property situated in Finland;
• Shares or other rights in a corporate body where more than 50 per cent of the total gross assets of the company consist of real property situated in Finland.
The same exemption applies to the taxation of property acquired by gift.
Members of missions who are Finnish nationals are liable to pay inheritance and gift tax also for other assets according to the applicable provisions.
3.6 Real Property Tax
A municipal tax on real property is levied by the municipality on the territory of which the property is situated, unless an exemption is granted by law. It should be noted that the owner (e.g. a foreign country) must file an application for the registration of title to property with the local District Survey Office (“maanmittauslaitos”).
The premises of missions including the residences of Heads of mission are exempt from real property tax to the extent provided for in the Vienna Conventions. These exemptions do not cover, as a rule, cases where a mission, on behalf of the sending state, is a shareholder (i.e. owns a flat) in a residential housing company or other real estate company, as it is not the mission but the company which is liable to tax. It is advisable to contact the local tax office for further advice concerning the tax liability in respect of the real property.
As a rule, real property tax has to be paid in case the real property is used by a member of a mission other than the Head of mission, without prejudice to any bilateral agreements.
3.7 Sales Profits
As a rule, income derived from selling property in Finland (immovable and movable property) is considered as taxable income with the exceptions provided in law. The Vienna Conventions on Diplomatic and Consular Relations provide the following exceptions to the tax liability:
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