Finland's transfer tax, which generated approximately 1.2 billion euros in revenue last year, could face a temporary suspension. The proposal comes from Otto Andersson, the newly re-elected chairman of the Swedish People's Party's (RKP) parliamentary group, who suggests a targeted tax measure could be key to improving employment and stimulating growth.
Andersson was unanimously confirmed to continue leading the RKP's Eduskunta group on Monday, just as the Finnish Parliament commenced its critical spring session. He stated that well-targeted temporary tax policies could have a central role in the government's economic toolkit for the coming months. His comments signal a potential push for fiscal adjustments as the governing coalition navigates economic challenges.
Andersson's Call for Targeted Measures
In his remarks following his re-election, Andersson identified measures to improve employment and promote growth as the keystone issues for the parliamentary spring term. 'I see that temporary and well-targeted tax measures can have a central role in this,' Andersson said, directly linking fiscal policy to the government's core economic objectives. His statement did not specify the exact duration or design of a potential transfer tax suspension but framed it as a possible stimulus tool.
This suggestion places a new item on the agenda of the three-party ruling coalition, comprised of the National Coalition Party (Kokoomus), the Finns Party (Perussuomalaiset), and the RKP. The transfer tax, levied on the purchase of residential properties and shares in housing companies, is a significant revenue source but is also often cited by critics as a barrier to housing mobility and market fluidity.
The Transfer Tax in Context
The Finnish transfer tax rate currently stands at four percent for shares in housing companies and two percent for other property, such as plots of land. Discussions about its economic impact are perennial in Finnish politics. Proponents of cuts or suspensions argue it would energize the housing market, encourage downsizing or relocation for work, and boost related industries like construction and moving services.
Opponents typically counter that the revenue loss would be substantial and would need to be offset elsewhere, potentially impacting public finances. Any move to adjust the tax, even temporarily, would require careful negotiation within the government and likely face scrutiny from opposition parties in the Eduskunta, including the Social Democrats and the Centre Party.
Coalition Dynamics and the Spring Agenda
Andersson's public float of this idea tests the cohesion of the government's economic strategy. The RKP, as the smallest coalition partner, often uses its leverage to advocate for market-liberal policies. The proposal may find sympathy within parts of the leading Kokoomus, which traditionally favors tax relief, but could encounter resistance from the Finns Party, which is generally more focused on austerity and spending controls rather than tax cuts that reduce state income.
The opening of the spring session sets the stage for this debate. Parliamentary work will now intensify, with the government's legislative program taking shape. The Finance Ministry, led by Kokoomus's Riikka Purra, will be a key arena for evaluating any formal proposal. The ministry's analysis would weigh the projected stimulative effect against the concrete loss of hundreds of millions in annual tax revenue.
EU Implications and Historical Precedents
While primarily a domestic fiscal matter, changes to property taxation can have indirect links to broader EU economic coordination, particularly under frameworks monitoring macroeconomic imbalances. A significant stimulus measure could attract attention from European institutions. Historically, Finland has adjusted the transfer tax before, the rate was reduced in 2013 from 4% to the current 2% for certain property types, providing a precedent for using the tax as an economic lever.
The coming weeks will show whether Andersson's suggestion gains traction within the government's inner circles or remains a talking point. Its fate will be a clear indicator of the coalition's priority: whether to use potential fiscal levers for short-term economic stimulation or maintain a firmer focus on budget consolidation. The debate will unfold in Helsinki's government district, with committee rooms in the Eduskunta building serving as the main battleground for this fiscal policy discussion.