Taxes in Finland
A comprehensive guide to the Finnish taxation system for international businesses and entrepreneurs.
Corporate Income Tax
The corporate income tax rate in Finland is 20%. It applies to the profits of limited liability companies (Oy) and cooperative societies. The system is straightforward, with a competitive rate compared to other Nordic countries.
Value Added Tax (VAT)
The standard VAT rate is 25.5% (general rate). Reduced rates apply to food (14%), books, medicines, and transport (10%). VAT registration is mandatory if turnover exceeds €15,000 per year.
Employer Contributions
Employers must pay social security contributions, pension insurance (TyEL), and unemployment insurance. The total indirect labor cost is typically around 20-25% on top of the gross salary.
Personal Taxation
Residents pay progressive tax on worldwide income, meaning higher earners pay a larger percentage. The rate depends on total annual earnings, municipality, and church membership.
Non-Residents
If staying under 6 months, you typically pay a fixed 35% tax at source. If staying longer, you are taxed as a resident. EU/EEA residents can often request progressive taxation even for short stays.
Tax Card & Returns
Every employee needs a Tax Card (verokortti) to determine their withholding rate. Without it, a 60% tax is applied. You must also check your pre-completed Tax Return (veroilmoitus) annually for errors.
Deductions & Benefits
You can reduce your tax burden with deductions like the Household Deduction (kotitalousvähennys) for renovations or cleaning, as well as deductions for commuting, professional equipment, and interest on student loans.
Capital & Crypto Income
Income from rents, dividends, and cryptocurrency is taxed as capital income (pääomatulo). The rate is 30% up to €30,000 and 34% for the amount exceeding that limit. It is separate from your wage income.
Starting Business Income Example
A rough estimate of take-home pay for a Sole Trader (Toiminimi) billing €5,000/month.
This is a simplified example. Actual tax rates depend on your municipality, age, and other deductions. Always consult a professional.
Useful Resources
Useful links to official Finnish authorities and financial systems.
Vero.fi
Official Finnish Tax Administration.
Tax Percentage Calculator
Calculate your personal withholding tax rate.
VAT Calculator
Check current VAT rates and thresholds.
YEL Calculator (Ilmarinen)
Estimate your mandatory pension insurance contributions.
Tax Treaties
Current bilateral tax agreements.
Common Tax Situations We Solve
We help navigate complex tax issues for individuals and businesses.
Income from Abroad
Pensions, rent, dividends while living in Finland. Avoiding double taxation.
Remote Work
Tax obligations when working for a foreign company from Finland.
Selling Property
Tax implications of selling real estate or vehicles abroad.
Gifts & Inheritance
Declaring assets received from abroad and tax optimization.
Relocating with Capital
Tax planning for personal savings and investments when moving to Finland.
Cryptocurrencies
Calculating taxes on trading and mining using the FIFO method.
Foreign Companies (CFC)
Guidance on Controlled Foreign Corporation rules.
Living in Two Countries
Determining tax residency and the 183-day rule.
Renting Out Property
Tax optimization for rental income (Airbnb or long-term).
Tax Return Corrections
Fixing errors in tax filings from previous years.
Moving from Finland
Advice on the "3-year rule" and changing tax residency.
Key Employee Tax Regime
Applying for the flat 32% tax rate for foreign experts (salary > €5,800/mo).
Employment Benefits
Taxation of fringe benefits like company cars, housing, and lunch vouchers.
Municipal Tax Variances
Understanding how your city of residence impacts your total tax rate (16.5% - 23.5%).
Social Security Deductions
Explaining mandatory pension (TyEL) and unemployment insurance contributions.
Late Filing Penalties
Helping you file on time to avoid punitive late fees and tax increases.
Car Import Tax
Tax implications when importing a vehicle as part of your move to Finland.
Dividend Optimization
Strategies for optimizing taxes on dividends from non-listed limited companies.