Known for its high quality of life, world-class education system and stunning natural landscapes, Finland is a top destination for individuals and families seeking a fresh start in Northern Europe.
In this guide, we’ll walk you through everything you need to know about relocating to Finland from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Finland follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if you are present in Finland for six consecutive months other than ad hoc holidays overseas.
if your main residence is located in Finland during the tax year.
if you are a Finnish national and have been overseas for less than three years unless you have no Finnish ties.
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Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Finland, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Finland has 86 double taxation agreements signed.
