Tax Solutions For Real Estate Industry

Valuation of soil of a real estate for real estate tax purposes

The Finnish Real Estate Tax Act refers to the Asset Valuation Act for the purposes of valuation of real estate. According to the referred provisions the soil and the buildings of a real estate are valuated separately. The Supreme Administrative Court has on August 2012 given a decision concerning the valuation of the soil of a real estate for real estate tax purposes.

According to the Asset Valuation Act buildings granted to the real estates are taken into account when valuing the soil of the real estate. In the matter discussed by the Supreme Administrative Court the building permissions granted to a certain real estate entitled to build premises under the ground level. Previously there has not been a clear definition of concept of building rights that affect the taxable value of the real estate and taxpayer demanded that underground building rights should not be taken into account when valuing the