The change in the law, which will come into force from the beginning of 2026, will have a significant impact on Airbnb rentals and will introduce new restrictions on short-term rentals of investment properties. Under the new draft law, short-term rentals of investment property will only be allowed for a limited period of time, for example, up to 90 days per year. However, renting out your own home will continue to be allowed more freely for short periods, e.g. for holidays, and for periods of more than four weeks.
The reason for the change in the law is the need to distinguish occasional rental activities by private persons from professional accommodation. The aim of the legislation is to clarify ambiguous situations and prevent abuses and to ensure fair treatment for landlords. In particular, those who rent their accommodation for periods of less than four weeks will have to pay attention to the new conditions and reporting obligations.
The growth of Airbnb has brought with it the need to clarify the regulation of short-term rentals and ensure that it is in line with national and European rules. The reform aims to balance landlords' rights, consumer protection and market functioning.
Airbnb activity has been growing strongly in recent years, especially in Helsinki, where the number of active short-term rental listings increased by around 8% over the past year, reaching around 5 000 listings in autumn 2024. A typical listing booking in Helsinki is around 255 nights per year with an occupancy rate of around 70%. This development has raised debate about the adequacy of rental housing supply and rising prices, which in turn has increased pressure to clarify the regulation of short-term rentals.
The Government has proposed that short-term rentals of investment housing should be limited to a maximum of 90 days per year, with the possibility for municipalities to grant derogations for up to 180 days per year (SM 2025). Short-term rentals (less than four weeks at a time) of owner-occupied housing would remain unrestricted.
The main objectives of the reform are:
The Finnish amendment is based on the EU regulatory framework, which includes the Services Directive (2006/123/EC) and the Digital Services Act (2022/2065). These laws define the information obligations and transparency requirements for platforms, including for tourism and accommodation services. The Union aims to ensure fair competition on digital platforms and to harmonise Member States' approaches to regulatory reporting.
The new rules will have a particular impact on short-term rentals and professional accommodation. In practice, there will be clarifications on the responsibilities and procedures of the landlord, which should be known before starting operations.
In the case of short-term rentals, such as Airbnb, the distinction between regular rentals and professional accommodation becomes clearer. In the past, this distinction was unclear and there was no clear legislation, but decisions were based on case law.
The law now defines more precisely when short-term rentals are considered accommodation. This will depend, among other things, on the duration of the rental, its frequency and the number of dwellings to be rented. If several dwellings are rented out on a short-term basis or the activity is continuous, it is often considered to be an accommodation activity.
Housing companies can also revise their articles of association to limit short term rentals. The landlord must ensure that the letting is in accordance with the articles of association.
When a short-term rental meets the characteristics of an accommodation activity, new obligations are imposed on the landlord. These may include registration requirements in the municipal accommodation register, accounting and reporting obligations and fire safety regulations.
Taxes will be tightened: all airbnb rental income must be declared on tax returns, and deductions must be correctly taken.
The authorities can also inspect the rented premises if necessary, for example to ensure adequate waste management, accessibility and the necessary permits. Compliance with these is the responsibility of the landlord.
Building legislation sets clear requirements for the use of residential properties and the licensing requirements for short-term rentals. Before starting an Airbnb activity, landlords must ensure that the rental does not require a change of use or a special permit.
The local building control may check that short-term accommodation does not require a building permit or a change in the zoning regulations (MRL 125 § 5). In principle, occasional rentals of less than four weeks do not need to be registered, but the municipality may also permit or prohibit these rentals in its building regulations (new § 40a, entry into force 1.1.2026).
In particular, the authorities monitor compliance with the Land Use and Building Act and with the specific uses of dwellings. Cities and municipalities keep records of short-term rentals and may require occupancy reports, especially if the dwelling is regularly used as an Airbnb property.
Controls can include, for example:
The landlord has a legal obligation to report rental activities to the authorities. This may mean, for example, providing information on tenants or reporting rental periods to the tax authorities and other registers. Regular and careful record-keeping and documentation will reduce the risks of possible tax audits and regulatory control.
Taxation
Rental income must be reported to the tax authorities as capital income in accordance with the Income Tax Act, and the landlord must keep all accounting records related to the rental as required by the Accounting Act and the Tax Procedure Act.
Documents to be kept
Data retention period
The documents must be kept for at least six years in accordance with tax legislation, so that they can be presented to a tax audit if necessary.
Future reporting obligations (STR register)
The EU Short-Term Rental Regulation (STR) requires the registration and reporting of short-term rental data to the authorities. Its implementation is currently being prepared by the Ministry of Employment and the Economy
The aim of the bill is to regulate short-term rental activities, such as Airbnb accommodation, in a clearer and more harmonised way. The changes aim to limit the duration of the activity and give municipalities more decision-making power to regulate rental activities in different areas.
The article on short-term rentals in the Construction Act was returned to the Ministry of the Environment for further preparation in summer 2024 after a round of consultations, when a large number of opinions were received and views were strongly divided. the draft bill is expected to be launched in spring 2025, after which it will be submitted to Parliament once the timetable is confirmed.
Current information suggests that entry into force is planned for summer 2026, around six months later than originally planned.
Several stakeholders, such as the Finnish Landlords, have highlighted the importance of the proposed discretionary powers for municipalities and the length of the rental limits, as well as the need to strike a balance between private rights and the regulatory needs of municipalities. The tourism industry, neighbourhood representatives and housing associations are also contributing to the process with their own opinions, which may lead to changes in the detailed regulations before final adoption.
Airbnb regulation in Finland is changing, affecting both the housing market and landlords' plans. International developments and local legislation will guide the future of short-term rentals.
The government is preparing a law that would limit Airbnb-type short-term rentals to 90 days per year in an investment property. This restriction would reduce the supply of short-term rentals, especially in popular areas where demand is high.
The distinction between short-term rentals and professional accommodation is becoming more difficult, as there is still no unambiguous legislation. Many landlords will have to follow case law and adapt to the new restrictions.
For the landlord, it is important to assess the relationship between rental income and risk in the future. The opportunities offered by short lease periods may diminish, but they can still complement long-term rental activities.
Several European countries have introduced similar restrictions, such as daily caps and registration restrictions. In Amsterdam, for example, short-term rentals are limited to 30 days per year, in Paris and London to 90 days.
Airbnb has developed platforms and tools to help landlords monitor compliance with the restrictions. Local laws vary, but the trend towards stricter regulation is gaining momentum globally.
These rules are intended to curb the rise in house prices and keep the supply of housing in cities stable. Landlords should actively familiarise themselves with practices in Finland and other countries so that they can adapt to changes effectively.
Short-term renting brings with it specific practical challenges and increased risks that landlords need to identify and manage. For example, the use of shared facilities and equipment and social factors relating to tenants' behaviour require attention.
Housing associations often have common areas such as laundry rooms, saunas and storage rooms. Airbnb tenants may not be familiar with the house rules or the instructions for using the equipment, which can lead to abuse or damage.
Excessive or incorrect use of common machines, such as washing machines, can cause wear and tear or damage. Some sites have restrictions that prevent regular use by outsiders or require special provisions.
The landlord should clearly inform tenants about the rules of the housing association. It is also a good idea to check any restrictions in the bylaws and to discuss them with the landlord before starting the rental activity.
In short-term tenancies, changing tenants can cause anxiety for permanent residents. For example, disturbing noise at night, a large number of visitors or unorthodox behaviour, such as having sex in public areas, can cause complaints from neighbours.
The rapid turnover of residents also makes it difficult to detect infringements and allocate responsibility. The landlord should clearly state the rules, for example in the tenant's folder.
At best, good leases and guidance will prevent abuse. Cooperation with the board and open communication help to manage social situations.
Regulatory changes to Airbnb are driving many landlords to seek more flexible and risk-free solutions. With the change in the law, landlords should look at other options that offer stability and reduce the administrative burden.
If using Airbnb becomes impossible or significantly more difficult, the landlord can use other platforms such as Booking.com, Oikotie or domestic short-term rental services. Such alternatives can provide flexibility without the restrictions of Airbnb, but the obligations associated with the rental business, such as tax returns and licensing issues, still apply.
Short-term rentals on alternative platforms require active involvement in furnishing, cleaning and managing customer turnover, so the administrative workload can be greater than for long-term rentals.
A long-term lease offers stability and predictability. The landlord receives a regular income and minimises the risk of vacancy. This reduces the administrative tasks and costs that often arise from active cleaning and maintenance of the dwelling in the case of short-term rentals.
The main benefits of long-term rental:
However, landlords should be aware that long-term leases include a commitment to notice periods and limit the ability to quickly change the terms of the lease.
For businesses, renting offers many advantages and can bring long-term cooperation and stable payment behaviour. Business leases can also offer higher rent levels and clearer responsibilities, for example for furnishings and maintenance.
The benefits of business rentals:
Companies appreciate flexible and furnished solutions, so a well-equipped apartment and a central location add to the appeal. When renting to businesses, particular attention should be paid to the clarity of contracts and the recording of responsibilities for the upkeep of the property.
For landlords who want to minimise the hassle of renting and at the same time achieve financial stability, one effective solution is to rent an apartment for business with Immodan.
Immodan provides expert advice throughout the rental process, including drafting contracts, checking tenants' backgrounds and providing tax advice. This helps landlords to find reliable, long-term business tenants easily and efficiently.
The advantages of the Immodan brokerage service:
For businesses, renting through Immodan is a safe option that allows for longer and more stable rental relationships. As a landlord, this allows you to make efficient use of your property in a changing business environment and adapt flexibly to regulatory changes.
This new section is seamlessly integrated with the previous content and gives the reader concrete options in the face of new legislation.
