Asumisvalinta
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What is right of occupancy (asumisoikeus)?

Right of occupancy in Finland explained plainly: what you pay, who can apply, how applying works and what happens when you move out.

Updated 5 October 2026

A right-of-occupancy flat (asumisoikeusasunto, ASO) is a third way to live, between renting and owning. You pay a one-off right-of-occupancy fee and then a monthly charge. The flat is not yours, but you can live in it for as long as you like, and the fee is refunded when you move out.

What right of occupancy is

Right of occupancy is the right to occupy a flat in exchange for the fee. The building belongs to an ASO community (asumisoikeusyhteisö), and the right is created by a contract between you and the community. Only a natural person can hold it, not a company.

There are two kinds of ASO buildings: state-subsidised and privately financed. Many of the rules in this guide, such as resident selection and the ceiling on the monthly charge, apply only to state-subsidised buildings.

What it costs

The right-of-occupancy fee is paid once, when the right begins. The Act caps the fees in total: in a state-subsidised building the fees may cover at most 15% of the building's construction or acquisition cost, in a privately financed building at most 30%. The cap applies to the building's acquisition value, not to market prices in the area.

The monthly charge (käyttövastike) covers the building's costs. In a state-subsidised building it is set under good financial management and must be lower than the usual rent of comparable rental flats in the same locality.

Charges rise with costs. According to Varke's market reviews, they rose on average by 3.8% in 2023, 5.7% in 2024 and 3.8% in 2025 across Finland.

No transfer tax is paid on acquiring or giving up a right of occupancy.

Who can apply

You can apply for a state-subsidised right-of-occupancy flat when:

  • you are at least 18
  • you are a Finnish citizen or have a registered EU right of residence, a residence permit of at least one year or a student residence permit
  • you need the flat: neither you nor an adult family member owns a comparable home in the area, and your family's assets would not cover at least half the price of the flat you apply for or a similar one.

The need test does not apply if you are 55 or over or you move from one right-of-occupancy flat to another.

How applying works

  1. Get a queue number (järjestysnumero) from Varke (Asumisen rahoitus- ja kehittämiskeskus). It is valid for two years and must be valid when you are offered a flat.
  2. Register with the ASO community that owns the building you want. Communities announce publicly when they accept applications.
  3. Residents are chosen in the order of their queue numbers among the applicants who meet the conditions.

Living there

You live in the flat as in your own home, but the community owns the building. Residents have a statutory resident administration with a residents' meeting and a residents' committee.

You may let at most half of the flat to someone else. You may hand over the whole flat for at most two years at a time, for example when work or studies take you temporarily to another town. The flat may not be used for short-term accommodation. You must tell the community in writing beforehand.

When you move out

To give up the right, you notify the community. It must redeem the right and refund the fee within three months of your notice, but not before you have moved out.

The refund has three parts:

  • the first right-of-occupancy fee paid for the flat
  • the change in the building cost index since that first fee was paid
  • reasonable improvements you made to the flat.

The refund is never less than the first fee. It follows building costs, not house prices, so you neither gain from rising prices in the area nor lose from falling ones.

In a state-subsidised building you can also pass the right to your spouse, a family member living in the flat or a direct relative, once you have lived there for at least two years. The price may be at most the refund the community would pay.

When a holder dies, the right belongs to the estate. A family member who lived in the flat can redeem it within three months.

Giving up a right of occupancy is taxed like selling your own home. The Tax Administration's guidance gives the exact conditions.

When right of occupancy suits you

Right of occupancy suits you when you want to live in one place for a long time without a mortgage and without the risk of house prices. On the other hand, the money in the fee does not grow with house prices, and the monthly charges can rise.

The comparison on Asumisvalinta shows renting, right of occupancy and buying side by side for the area and the years you choose. It assumes a fee of 15% of the debt-free price and a monthly charge of 85% of the market rent; you can change both to match a real flat.

Compare a flat

Sources