On 22 October 2026, the Finnish Tax Administration published detailed guidance on the household tax credit as it applies to apartment maintenance, basic renovation work, and projects related to replacing oil heating systems. This guidance is part of the broader kotitalousvähennys framework and addresses specific questions about which construction and energy-related expenses qualify for the 40% tax credit. The clarification is timely given Finland’s push to phase out oil heating in residential buildings.
Key Takeaways
- Qualifying Renovation Work: Basic renovations that maintain or improve the dwelling’s condition qualify, including roof repairs, pipe replacements, and window upgrades. Cosmetic improvements like painting do not qualify unless part of a larger qualifying project.
- Oil Heating Replacement: Expenses directly caused by switching from oil to renewable heating (e.g., heat pumps, district heating) are fully eligible. This includes dismantling oil tanks, installing new heat distribution systems, and related electrical work.
- Exclusions and Limits: The guidance explicitly excludes new construction, expansion of living space, and luxury upgrades. The overall credit cap of €2,250 per taxpayer applies collectively to all household expenses.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement