In Finland, the taxation system is quite comprehensive and is managed by the Finnish Tax Administration. Taxes in Finland fund a wide range of public services, including healthcare, education, and social security, contributing to the country’s high standard of living.
Taxation for foreigners in Finland depends on their residency status, which is determined by the duration of their stay and their personal ties to the country.
- Resident Taxpayers: If you stay in Finland for more than six months, you are considered a resident for tax purposes. Residents are taxed on their worldwide income, meaning all income earned both in Finland and abroad is subject to Finnish taxes. Income is taxed progressively.
- Non-Resident Taxpayers: If you stay in Finland for six months or less, you are considered a non-resident. Non-residents are only taxed on their Finnish-sourced income, such as wages earned from working in Finland or income from Finnish property. A flat tax rate of 35% is applied to Finnish-sourced income
As a resident tax payer, you need to get a tax card (verokortti). The tax card indicates your tax rate, which determines how much tax will be withheld from your income. If you are new to Finland, you can obtain a tax card from your local tax office (verotoimisto). You will need to estimate your annual income and have a Finnish personal identity code. The Finnish Tax Administration sends a new tax card to all residents at the beginning of each year, based on the previous year’s income.
With e-identification, you can access and update your tax card online through the MyTax service.