Renovation without surprises.
The household tax credit for a renovation client in 2026–2027 is 40 % of the labour share and at most 2 100 € per person, with a deductible of 150 €; the increase applies retroactively to all work paid for in 2026 (Finnish Tax Administration (Verohallinto) 13.10.2026). Construction costs rose 3,5 % year on year in August 2026, and housing companies can apply for a new energy grant from 28.9.2026. For the renovation contractor, the page gathers the construction sector's reverse-charge VAT, contract notifications, contractor's obligations and prepayment register rules.
Renovation Radar brings together the household tax credit, construction cost trends, permit rules and contract tips. With the calculator you see how much of a deduction you get.
- Home and cottage owners, shareholders
- Renovation contractors: reverse-charge VAT, notifications and contractor's obligations
Home maintenance calendar and logbook
Choose your home details. The radar creates a yearly maintenance programme, separates statutory work from recommendations and reminds you in your calendar. Mark completed work in the maintenance log so that the history and the next date are kept.
Sweeping intervals: Ministry of the Interior decree on chimney sweeping 539/2005, sections 2–3 (Finlex). Other intervals are general recommendations; always follow the device manufacturer's instructions. The service log is saved only in this browser and is not sent anywhere. The labour portion of maintenance work done by a professional may qualify for the household expense deduction (2026: 40%, at most €2,100 per person, deductible €150).
A contractor for a renovation or renovation jobs
The renovation client says what needs to be done, and the service provider announces their free jobs. Listing is free of charge, and you agree on the work directly between yourselves.
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Ask for at least two written quotes that separate labour and materials. The household expense deduction (40 %, up to 2 100 € per person in 2026) is calculated on the labour share only. Check the company in YTJ and agree payment instalments according to progress of the work.
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Calculators on their own pages: Renovation price calculator · Household deduction calculator for renovation · Invoicing for a renovation contract · All calculators
Renovation Radar in numbers
Key figures of the household deduction 2025 and 2026–2027
The deduction applies only to the labour share (not supplies). The increased amounts are valid in 2026 and 2027 and apply retroactively to all work paid in 2026 (Finnish Tax Administration 13.10.2026).
| Instalment | 2025 | 2026–2027 |
|---|---|---|
| Work purchased from a company | 35% of the work | 40% of the work |
| Directly hired employee | 13 % of salary + non-wage costs | 15 % of salary + non-wage costs |
| Maximum amount per person | 1 600 € | 2 100 € |
| Maximum amount for spouses combined | 3 200 € | 4 200 € |
| Deductible per person | 150 € | 150 € |
| The party performing the work must be in the prepayment register | Yes | Yes |
Source: Finnish Tax Administration: Amount of the household expense deduction (updated 13.10.2026)
Actual renovation prices
Price information found in reliable public sources. The pipe renovation figures are medians for blocks of flats per residential or apartment square metre; the heating renovation figures are example calculations by Motiva. No neutral, publicly available €/m² statistics were found for bathroom, kitchen, window, roof and facade renovations, so they are not in the table.
| Renovation | Price | Detail | Source |
|---|---|---|---|
| Pipe renovation, traditional (apartment block), whole country | €890/residential m² | Median 2026 | Finnish Property Management Association, Pipe Renovation Barometer 2026 |
| Pipe renovation, traditional (apartment block), Helsinki metropolitan area | 1 000 €/m² of residential floor area | Median 2026 | Finnish Property Management Association, Pipe Renovation Barometer 2026 |
| Traditional sewer repair, whole country | slightly under 1 000 €/apartment m² | Median, autumn 2025 | Finnish Real Estate Federation, Renovation Barometer autumn 2025 |
| Traditional sewer repair, Helsinki metropolitan area | 1 100 €/m² of apartment floor area | Median, autumn 2025 | Finnish Real Estate Federation, Renovation Barometer autumn 2025 |
| Traditional sewer repair, outside the Helsinki metropolitan area | approx. 890 €/apartment m² | Median, autumn 2025 | Finnish Real Estate Federation, Renovation Barometer autumn 2025 |
| Internal drain repairs, nationwide | 240 €/m² of apartment floor area | Median, autumn 2025 | Finnish Real Estate Federation, Renovation Barometer autumn 2025 |
| Renewing only the domestic water pipes | 208 €/m² of apartment floor area | Median, autumn 2025 | Finnish Real Estate Federation, Renovation Barometer autumn 2025 |
| From oil heating to a ground-source heat pump, detached house | 23 000–26 000 € | Two example houses, average price level 2024 | Motiva, Examples of the costs of replacing oil heating |
| From oil heating to an air-to-water heat pump, detached house | 17 000–18 000 € | Two example houses, average price level 2024 | Motiva, Examples of the costs of replacing oil heating |
| From oil heating to district heating, detached house | 13 000 € | Two example houses, average price level 2024 | Motiva, Examples of the costs of replacing oil heating |
Is a permit needed? Building Act from 1 January 2025
The new Construction Act replaced the building permit and action permit with a single construction permit, and the notification procedure was abolished. A municipality may specify permit requirements in its building ordinance, so always check with your own municipality's building control or through Lupapiste's advice request.
| Action | Permitted / free | Basis |
|---|---|---|
| New residential building (regardless of size) | Construction permit | Building Act, section 42, subsection 1 |
| Other new building of at least 30 m² or 120 m³ | Construction permit | Building Act, section 42, subsection 1 |
| Canopy of at least 50 m² | Construction permit | Building Act, section 42, subsection 1 |
| Energy well (e.g. ground-source heat well) | Construction permit | Building Act, section 42, subsection 1 |
| Extending a building | Construction permit | Helsinki Building Control |
| A repair that affects the building envelope or technical systems and has an impact on energy efficiency | Construction permit | Building Act, section 42, subsection 3 |
| Substantial change of intended use | Construction permit | Building Act, section 42, subsection 3 |
| Repair of load-bearing structures or significant removal of a health hazard | Construction permit | Building Act, section 42, subsection 3 |
| Repair of a protected building with a significant effect | Construction permit | Building Act, section 42, subsection 3 |
| A facade change with a significant impact on the townscape or the characteristic features of the building | Construction permit | Turku Building Control guidance card 2025 |
| Outbuilding under 30 m² or carport under 50 m² | No permit under certain conditions (the municipal building code and zoning plan decide) | City of Mikkeli |
| Glazing an existing balcony | No permit in Turku (a permit is needed if thermal insulation is added) | Turku Building Control guidance card 2025 |
| Air-source heat pump outdoor unit on a balcony | No permit in Turku | Turku Building Control guidance card 2025 |
| Demolition | Demolition permit or demolition notification (remained unchanged) | City of Mikkeli |
| Notification procedure and action permit | Abolished 1.1.2025 – replaced by a single type of permit, the building permit | Association of Finnish Municipalities, City of Mikkeli |
Source: Association of Finnish Municipalities; building control of Mikkeli, Turku and Helsinki
Renovation in seven stages – checklist
An order that helps you avoid the most common mistakes: permits, asbestos, the housing company notification and losing the household deduction.
| Step | What you do | Why |
|---|---|---|
| 1. Survey | Find out the construction year, structures and moisture risks; in an old house, commission a condition survey. | Hidden defects are the most common reason for budget overruns. |
| 2. Asbestos | If construction began before 1994, have an asbestos survey carried out before demolition or repair work. | The Act on the Safety of Asbestos Work (684/2015) requires a survey; asbestos demolition requires a permit from the Regional State Administrative Agency. |
| 3. Permit and notifications | Check with the municipality whether a building permit is needed; in a housing company, submit a written notice of alteration work in advance. | Building Act 1.1.2025; Limited Liability Housing Companies Act, chapter 5. |
| 4. Offers | Ask for at least 3 quotes with the same work description; compare the labour share, materials and schedule. | Comparable quotes and a separate labour share for the household deduction. |
| 5. Checks | Check the contractor's Business ID, prepayment register status and liability insurance (ytj.fi). | Deduction only for work paid to a company in the prepayment register. |
| 6. Contract | Written agreement: price, payment instalments according to progress of the work, schedule, warranty; terms RYS-9 or REYS-8. | In a dispute, the written agreement decides. |
| 7. Acceptance | Carry out an acceptance inspection, ask for the waterproofing installation certificate for wet rooms and keep the receipts. | The warranty and responsibility for correcting defects begin at handover; receipts are needed for the deduction. |
Renovation contractor's obligations 2026
Key tax and contract rules for a company selling construction services. General information – check case-specific terms with the Finnish Tax Administration (Verohallinto).
| Subject | Rule | Source |
|---|---|---|
| Reverse-charge VAT liability | The buyer accounts for the value added tax when the service is a construction service or the supply of labour for it, and the buyer itself sells construction services other than occasionally | Finnish Tax Administration (Verohallinto) |
| Invoice details in reverse-charge VAT | Price excluding tax, buyer's VAT identifier and a note on reverse charge (AVL section 8 c) | Finnish Tax Administration (Verohallinto) |
| Consumer customer | No reverse charge; the seller invoices 25.5% VAT | Finnish Tax Administration (Verohallinto) |
| Establishing the buyer's status | It is the seller's responsibility to find out whether the buyer meets the conditions for reverse-charge VAT | Finnish Tax Administration (Verohallinto) |
| Lower limit for VAT liability | 20 000 € per financial year (from 1.1.2025) | Finnish Tax Administration (Verohallinto) |
| Prepayment register | Without registration, the payer submits the tax withholding, and the consumer does not get a household deduction for the work | Finnish Tax Administration (Verohallinto) |
| Contract notification | Contracts over €15,000 (VAT 0) by the 5th of the month following the second month after the target month | Finnish Tax Administration (Verohallinto) |
| Employee details | On a shared construction site, employee details are provided to the principal contractor monthly | Finnish Tax Administration (Verohallinto) |
| Contractor's Obligations Act | Subcontracting over 9 000 € (VAT 0) or temporary agency work over 10 working days: reports from, among others, registers, taxes, pension insurance and occupational health care, and in the construction sector accident insurance | Federation of Finnish Enterprises |
| Contract terms | RYS-9 (over €10,000) or REYS-8 (under €10,000) for consumer contracts; YSE 1998 generally for contracts between businesses | KKV, Minilex |
Save time with ready-made templates
Free tool available to download with a free account. Larger tools as a one-off purchase, no subscription: files immediately after payment.
Free toolRenovation contract checklist
Check the contractor, contract and invoice before the renovation and make sure the conditions for the household expenses deduction are met.
- 25 checkpoints in five stages
- Contractor's prepayment register and insurance
- Clauses on the contract, payment instalments and extra work
Renovation budget and household tax credit
Renovation budget, quotation comparison and household tax credit calculator.
Home renovators
9,90 € incl. VATBuy 9,90 €Complaint and compensation claim templates
Five ready-made letters: flight delay, lost luggage, faulty product, service defect and insurance decision.
Consumers
2,90 € incl. VATBuy 2,90 €Read before you decide
Household deduction for renovation 2026: how much you get and how to claim
Household deduction for renovation 2026: 40% of the work, up to €2,100, €150 excess, conditions and applying in OmaVero. The increase applies to 2026–2027.
Read the guide →Does a renovation need a permit? Building permit, housing company and asbestos
When a renovation requires a building permit from 2025, when the housing company must be notified of alteration work and when an asbestos survey is needed.
Read the guide →Energy renovation 2026: grants for housing companies and detached houses
What you can get for an energy renovation in 2026: the Varke energy grant for housing companies, the status of the oil heating grant and the household deduction. Profitability.
Read the guide →Complaint about renovation: template and deadlines
How to file a complaint about a renovation defect: consumer rights, reasonable time, withholding payment, further steps and a copyable template message.
Read the guide →Deadlines and dates
Renovation Radar sends its subscribers an email reminder about these.
- Final tax decisions for 2025
The Finnish Tax Administration has delivered the last tax decisions for 2025, which also show the 2025 household expense deduction.
Source - September contract and employee information to the Tax Administration
Construction reports are submitted by the 5th day of the second month following the reporting month. Contract information applies to contracts worth over 15 000 € (VAT 0).
Source - September value added tax (monthly filers)
VAT for a monthly tax period is declared and paid on the 12th day of the second month following the tax period.
Source - Tax refunds to your account
End-of-year tax refunds are paid into the account of those whose taxation was completed in October.
Source - Energy grant: application for a repair already started
Repairs in a housing company could be started 1.6.2026 at the earliest if the grant application with its attachments is submitted to Varke by 31.12.2026 at the latest. For applications submitted in 2027, repairs may not begin before the application is submitted.
Source - Last payment date for the 2026 household deduction
The year in which the invoice is paid determines the tax year for which the household deduction is granted. For instalment payments, the deduction goes to the year in which each instalment is paid.
Source
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Frequently asked questions: Renovation Radar
How much household tax credit do you get for a renovation in 2026?
In 2026 and 2027 the deduction is 40% of the labour share (incl. VAT), at most €2,100 per person per year, and the excess is €150. The full deduction is obtained when the labour share is €5,625. The increase applies retroactively to all work paid in 2026, and spouses each get their own deduction. For work related to giving up oil heating the deduction is 60%, at most €3,500 (Finnish Tax Administration 13.10.2026).
Can you get the household tax credit for renovation supplies?
No. The deduction is available only for the labour share, so ask for the labour and materials to be itemised separately on the invoice. The deduction is also not available if, for example, a repair grant or insurance compensation has been received for the work.
Can you get the household deduction for a housing company's pipe renovation?
A housing company renovation financed with maintenance charges does not qualify for the household expense deduction. However, you can get the deduction for extra work that a shareholder orders and pays for directly, such as additional tiling.
Does a renovation need a building permit?
A construction permit is needed, for example, for an extension, a substantial change of use, and a repair that affects the building envelope or technical systems and impacts energy efficiency. The notification procedure and the action permit were abolished on 1.1.2025. Check your own situation with your municipality's building control.
Can you get a grant for energy renovation of a detached house in 2026?
Varke's new energy grant 2026–2027 is intended for housing companies and for communities that own state-subsidised rental and right-of-occupancy dwellings, not for detached houses. The grant is at most 4 000 € per dwelling and at most 50 % of costs.
Is an asbestos survey required before a renovation?
Yes, if construction of the building began before 1994 and the renovation affects structures that may contain asbestos (e.g. tiling, levelling compounds, fillers, pipe insulation). A survey is a statutory requirement (Act on the Safety of Asbestos Work 684/2015), and asbestos demolition work may only be carried out by a company holding an asbestos removal permit from the Regional State Administrative Agency.
Do you have to notify the housing company about a renovation?
Yes, if the renovation may affect the company's structures, pipes or another shareholder's apartment – for example a wet room, kitchen or electrical renovation. The shareholder must notify the housing company of the alteration work in writing before work begins (Limited Liability Housing Companies Act, chapter 5, section 2). The company may set conditions for the work and supervise it, and reasonable supervision costs may be charged to the shareholder.
How do I check a renovation firm before signing a contract?
Check the company's Business ID and prepayment registration in the free YTJ service (ytj.fi). The household deduction is only available for work done by a company entered in the prepayment register or by another provider that meets the tax authority's conditions. Ask for a written quote and make a written contract that states the price, schedule, payment instalments and responsibility for defects.
When does reverse-charge VAT apply in the construction industry?
When the service sold is a construction service or the hire of labour for a construction service, and the buyer is a business that itself sells construction services other than occasionally. In that case the seller invoices without VAT and the buyer accounts for the tax. Consumers and ordinary housing companies that do not sell construction services are invoiced with 25.5 % VAT.
What does the Contractor's Obligations Act require of a renovation contractor?
When you commission subcontracting worth over €9,000 (VAT 0) or use hired labour for over 10 working days, you must, before the contract, check things such as the contractual partner's registrations, payment of taxes, pension insurance, applicable collective agreement, occupational healthcare and, in the construction sector, accident insurance (Federation of Finnish Enterprises).
When must a contract be reported to the Finnish Tax Administration (Verohallinto)?
The purchaser of a construction service reports the contract details when the value of an individual contract exceeds 15 000 € excluding value added tax. The report is submitted by the 5th day of the second month following the reporting month. Households do not need to report. On a shared construction site, employee details are also reported to the principal contractor.
What happens if a renovation company is not in the prepayment register?
The payer must withhold tax on the fee for the work: 13 % for corporate entities and, for a natural person, according to the tax card or 60 % if there is no tax card. A consumer also cannot get the household deduction for the work. You can check the registration free of charge in YTJ.
How to use the information
- Always make a written contract for a renovation that records the price, schedule and payment instalments. Use the RYS-9 (over €10,000) or REYS-8 (under €10,000) terms as contract terms.
- Before ordering, check the company's Business ID and prepayment registration in YTJ (ytj.fi). You get the household expenses deduction only if the person doing the work is in the prepayment register.
- Ask for the labour share itemised separately from materials on the invoice: the household expense deduction applies only to the labour share, not to materials or to renovations financed through housing company maintenance charges.
- In a housing company, notify the board or the property manager in writing of alteration work before starting, if the work may affect space for which the company or another shareholder is responsible. Failing to notify increases liability for damages.
- Ask your municipality's building control or use a Lupapiste advisory request to find out whether the renovation needs a building permit – the notification procedure was abolished on 1.1.2025, and the municipal building ordinance may affect the need for a permit.
- Find out before invoicing whether your customer sells construction services itself: if so, invoice without VAT and mark the invoice with reverse charge and the buyer's VAT number. The seller is responsible for finding this out.
- Itemise the labour share of materials on the consumer customer's invoice: the customer gets the household deduction only for labour, and an itemised quote is easier to compare.
- When subcontracting exceeds €9,000 (VAT 0), request contractor's liability reports before the contract and keep them.
- Report contracts worth over 15 000 euros (VAT 0) to the Finnish Tax Administration by the 5th day of the second month following the month concerned.
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Sources (31)
- Finnish Tax Administration: Amount of the household expense deduction (updated 13.10.2026)
- Finnish Tax Administration: Increase proposed to the household expense deduction (16.6.2026)
- Ministry of Finance: Household tax credit to rise (11.6.2026)
- Parliament: HE 113/2026 vp
- Finnish Tax Administration: Conditions for the household expense deduction
- Finnish Tax Administration: How to claim the household expense deduction
- Finnish Tax Administration: Household expense deduction in a housing company
- Finnish Tax Administration: Important dates for private customers 2026
- Statistics Finland: Building cost index, August 2026 (15.9.2026)
- Varke: Energy grant 2026–2027
- Varke: Energy grant application guide (10.9.2026)
- Varke: Lift grant rises to 45 per cent (16.2.2026)
- Finnish Property Management Association: Pipe Renovation Barometer 2026
- Finnish Real Estate Federation: Renovation Barometer autumn 2025
- Motiva: Examples of the costs of replacing oil heating
- Association of Finnish Municipalities: Building permit system
- City of Mikkeli: Building Act 2025
- Turku Building Control: Facade alterations, guidance card 2025
- City of Helsinki: Building permit and other permits
- KKV: Renovations
- KKV: Consumer contract terms in the construction sector renewed
- Finnish Real Estate Federation: Shareholder, make sure you notify of alteration work
- Finnish Tax Administration: Reverse VAT liability in the construction sector
- Finnish Tax Administration: Construction notifications – contract data
- Finnish Tax Administration: Construction notifications – employee data
- Finnish Tax Administration: Prepayment register
- Finnish Tax Administration: Threshold for minor business activity rises to 20 000 € (2024)
- Federation of Finnish Enterprises: Do you know the Contractor's Obligations Act
- Federation of Finnish Enterprises: Tax dates for entrepreneurs
- Statistics Finland: 296 bankruptcies were initiated in August 2026 (15.9.2026)
- Minilex: General contract terms for the construction industry
The information has been compiled from public sources on 27.10.2026. Always check the current terms from the original source. The information is not investment, loan or legal advice.

