Finland Enacts Property Purchase Ban for Russians Amid Security Concerns

Finland’s parliament has unanimously approved a proposed prohibition on Russian individuals and entities acquiring real estate and exerting “hostile influence” in the nation, as announced by the Finnish Defense Ministry on Friday.

Sharing the longest border within the EU and NATO with Russia, Finland has previously denied several real estate transactions by Russian nationals and organizations over the last year, citing concerns for national security.

“This resolution conveys a strong message: we will ensure that Finland remains secure,” stated Antti Hakkanen, the Finnish Defense Minister.

The prohibition does not extend to Russians or other foreigners who possess a permanent residency permit in Finland or an EU residence permit issued by Helsinki, allowing them to seek approval from the Finnish Defense Ministry for property transactions.

The newly enacted law specifically prohibits individuals and companies from nations that are “engaged in acts of aggression and represent a possible threat to Finland’s national security” from conducting real estate transactions.

Hakkanen indicated that the government will subsequently draft legislation detailing which countries will be included in the ban and will introduce measures for retroactive intervention and oversight of foreign-owned properties.

Additionally, the new legislation includes measures requiring permits to prevent circumvention through so-called «dummy purchases,» in which properties are acquired on behalf of another individual to hide the actual buyer’s identity.

In 2013, Hakkanen established a working group to evaluate the ban on real estate purchases by Russian citizens, with the Defense Ministry stating that such properties could be weaponized against Finland’s economy, infrastructure, enterprises, and security.