Finland Tax-Exempt Income (2025)

Key Areas of Tax-Exempt Income:

• Certain Social Benefits:
  • Many social benefits provided by the Finnish government are exempt from income tax.
    This includes certain welfare payments, child benefits, and specific disability benefits.
• Specific Capital Gains:
  • In certain circumstances, capital gains from the sale of a private residence may be exempt from tax, provided specific conditions are met.
  • Some capital gains from the sale of specific assets held for a longer period of time might be exempt.
• Dividends from Specific Investment Funds:
  • Some dividends received from certain Finnish investment funds may be exempt from taxation.
  • Income from Diplomatic Missions and International Organizations:
    • Income earned by diplomatic missions and accredited international organizations in Finland is typically exempt from taxation.
    • Income Specified by Double Taxation Treaties:
      • Double taxation treaties between Finland and other countries may provide exemptions for certain types of income earned by foreign investors.
      • It is very important to read the Double Taxation Treaty between Finland and your country of origin.
    • Certain Lottery Winnings:
      • Winnings from the Finnish national lottery are tax exempt.
    
    
    
    
    

    Important Considerations:

    • Tax Residency:
      • Tax residency in Finland is a crucial factor in determining tax liability.
      • Generally, individuals residing in Finland for more than six months are considered tax residents.
    • Double Taxation Treaties:
      • Finland has an extensive network of double taxation treaties, which aim to prevent double taxation and provide clarity on tax obligations.
    • Documentation:
      • Maintain accurate and complete records to support any claims for tax exemptions.
    • Professional Advice:
      • Seek professional tax advice from experts in Finland to ensure compliance and maximize your benefits.
    • Finnish Tax Administration (Vero Skatt) Guidelines:
      • It is very important to keep up to date with the guidelines published by the Finnish Tax Administration (Vero Skatt).
    
    
    
    
    

    Key Takeaway:

    • While Finland has a comprehensive tax system, certain income streams are exempt.
    • Understanding tax residency and double taxation treaties is crucial for foreign investors.
    • It is very important to keep up to date with the guidelines published by the Finnish Tax Administration (Vero Skatt).