Finland has introduced a legislative proposal aimed at restricting real estate purchases by citizens from countries engaged in active conflicts. The bill, which is now under consideration in the Finnish Parliament, is designed to bolster national security and prevent foreign influence on Finland’s real estate sector. However, the new regulations will not apply to foreign nationals holding permanent residence permits or long-term EU residency status in Finland.
Key Details of the Proposal
The Finnish Ministry of Defense revealed that the government is concerned about the security risks posed by real estate transactions involving citizens from nations currently at war. The new law, if passed, will prohibit individuals from these countries, as well as any companies or entities with direct ties to them, from acquiring property in Finland.
The legislation is designed to mitigate potential threats to national security, recognizing that foreign ownership of real estate could be leveraged for hostile influence. The government aims to reduce the risks to Finland’s economic stability, infrastructure, and public security, as property transactions are increasingly viewed as tools for exerting political or strategic control.
To ensure the effectiveness of the law, the government plans to limit the number of real estate purchase applications from individuals in restricted nations. This will enable Finnish authorities to streamline the verification process and allocate resources more efficiently.
Exemptions and Oversight
The restrictions will not extend to foreign nationals who are residents of Finland, such as those with valid permanent residence permits or long-term EU residency status. For these individuals, the Ministry of Defense will continue to evaluate and approve real estate purchases on a case-by-case basis.
To address concerns about potential attempts to circumvent the legislation, the Finnish government is implementing safeguards to detect fraudulent or proxy buyers. If there are suspicions of fictitious ownership, the Ministry of Defense will have the authority to request additional documentation. Furthermore, the government is strengthening inter-agency collaboration to ensure better information sharing and prevent any loopholes.
This move is in alignment with the broader security strategy of Prime Minister Petteri Orpo’s government, which has prioritized reviewing and tightening regulations surrounding foreign real estate acquisitions, particularly those involving entities outside the European Union and European Economic Area.
The proposed restrictions are part of Finland’s ongoing efforts to safeguard national interests amidst growing concerns over foreign influence and security vulnerabilities.
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