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Finland: Taxes and Costs

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Rental income taxes are generally high in Finland

Effective Tax Rate on Rental Income
Monthly Income	€1,500	€6,000	€12,000
Tax Rate	23.8%	23.8%	23.8%
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INDIVIDUAL TAXATION

Non-residents are taxed on their income from Finnish sources. Spouses are taxed separately.

INCOME TAX

Non-residents are taxed on their Finnish-sourced income. Taxable income is divided into two categories; income from capital and earned income. The two categories are taxed separately at different rates.

Income from Capital

Income from capital is taxed at a flat rate of 28%.

RENTAL INCOME
Rental income falls under income from capital and is taxed at 28%. Income-generating expenses, such as maintenance, renovation and interest (provided it came from a loan used to acquire income) are deductible from rental income before the 28% tax is imposed.

CAPITAL GAINS
Gains from the sale of property are included in the income from capital category and taxed at 28%. Gains that do not exceed €1,400 are exempt from capital gains tax.

Taxable capital gains are computed in two ways:

• Gross selling price less acquisition costs;
• Gross selling price less 20% in lieu of actual acquisition costs.

PROPERTY TAX

Real Property Tax (kiinteistövero; fastighetsskatt)

A real estate tax is levied on properties located in Finland. The tax is imposed on the value of the property at rates varying from 0.5% to 1%. For residential buildings (but not summer cottages), the rate may vary from 0.22% to 0.5%. The actual rates are established by the municipalities, which are the recipients of the revenue from this tax.

CORPPORATE TAXATION

INCOME TAX

Corporate income is taxed at a flat rate of 26%. Depreciation, maintenance costs and other business-related expenses are deductible from gross income.

CAPITAL GAINS
Capital gains are not taxed separately, but included in the gross income of the company. Capital gains are generally computed as selling price less the depreciated acquisition value of the property.

Finland - more data and information

• Guide to buying houses and registering property sales in Finland

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