Finland’s Defense Minister Rejects Property Purchase Permits Amid Security Concerns
On Friday, Finland’s Defense Minister, Antti Häkkänen, announced the rejection of 11 real estate purchase permit applications from prospective buyers outside the European Union and the European Economic Area (EEA). This decision, conveyed in a ministry press release on Monday, emphasizes the government’s growing vigilance over foreign investments in real estate, particularly those that could pose risks to national security.
Häkkänen highlighted the potential for foreign entities to exploit property transactions as a means of hybrid influence. “We must reject real estate acquisitions that threaten national security and disrupt our national defense capabilities,” he stated, underlining the ministerial stance on safeguarding Finland’s territorial integrity.
This recent action is part of Finland’s broader strategy to tighten its real estate regulations. Notably, a ban on property purchases by non-resident nationals from Russia and Belarus was implemented over the summer, a move Häkkänen described as effective in curbing suspicious dealings.
The properties subject to rejection were scattered across various regions of the country—including Mikkeli, Parainen, Puumala, Taipalsaari, Savonlinna, Simo, Kouvola, Parikkala, Kolari, and Tornio. The applicants, who hailed from Russia, Israel, Kazakhstan, and Kyrgyzstan, intended to use these properties for a range of purposes, including business ventures, forestry, and recreational activities.
The ministry supported its decision by referencing the Act on Transfers of Real Estate Requiring Special Permission, which grants it the authority to regulate foreign investments in domestic property. Importantly, Häkkänen also indicated that the rejection of these applications is not yet legally definitive, leaving room for further developments in the matter.
As Finland navigates an increasingly complex geopolitical landscape, the ramifications of these real estate decisions underscore a broader commitment to maintaining national security while addressing the nuanced challenges posed by foreign investment.