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🇫🇮 Finland taxes · 2026 rates

Finland's tax system

A complete guide to Finnish taxes for investors and property owners: residency, rates and contributions.

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12.64-44%personal income tax
20%corporate income tax
24%VAT

Finland applies a progressive income tax scale plus a separate municipal tax. Below is who counts as a resident and which rates apply to individuals, businesses and property.

Who counts as a tax resident

You are a tax resident of Finland if you have a permanent home or habitual place of residence in the country, or if you stay in Finland continuously for more than six months.

Tax residents pay tax on their worldwide income, non-residents - only on income earned in Finland.

Tax rates

The main rates in Finland:

  • Personal income tax - 12.64-44%. A progressive scale. On top of that, a municipal tax of 16.5% to 23.5% applies, depending on the municipality.
  • Corporate income tax - 20%. Charged on the company's worldwide income.
  • VAT - 24%. The standard rate.
  • Social contributions for employees: health insurance - 2.04%, pension insurance - 7.15% or 8.65% depending on age, unemployment insurance - 1.4%.
  • Property tax - 0.41-2%.
  • Transfer tax - 4%.

What an investor needs to know about Finnish taxes

Clear residency criteria

Residency is determined by having a permanent home or by the length of stay - more than 6 months in a row.

A single corporate tax rate

20% on the company's worldwide income - a predictable base for business planning.

Straightforward social contributions

The rates for health insurance, pension insurance and unemployment insurance are fixed and known in advance.

A separate transfer tax

4% - worth factoring in ahead of time when buying property in Finland.

FAQ

Who counts as a tax resident of Finland?
Anyone who has a permanent home or habitual place of residence in Finland, or who stays in the country continuously for more than 6 months.
What is the personal income tax rate in Finland?
From 12.64% to 44% on a progressive scale, plus a municipal tax of 16.5% to 23.5%.
How much is corporate tax in Finland?
20% on the company's worldwide income.
What is the VAT rate in Finland?
The standard VAT rate is 24%.
How much is the transfer tax?
4% - it applies when property is transferred, for example when real estate is bought.

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