Finland

Research notes

Finland — family-office tax dossier

Last reviewed: 2026-10-16 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser

Summary

Capital gains are taxed at 34% at the top. Listed dividends are taxed at an effective 28.9%. There is no wealth tax. Inheritance tax per child: nothing below EUR 30,000 (from 2026), then 7% to 19% on the whole share, so about 18.6% on a EUR 10m share. Finland is an EU member with no special regime for wealthy arrivals.

Residence and eligibility

A person is resident with a permanent home or habitual abode in Finland, or after more than 6 months' continuous stay. Finnish nationals stay resident for 3 calendar years after leaving unless they prove they have no essential ties (PwC). EU citizens use free movement (registration after 3 months). Others need a residence permit on another basis (work, entrepreneur, start-up, family). There is no investor visa. Migri could not be fetched automatically, so these permit details are unverified.

Capital gains

Capital income tax is 30% up to EUR 30,000 and 34% above (Vero, "Selling shares"; PwC). There is no holding-period relief on the rate. A deemed acquisition cost of 20% of the price (40% after 10 years) can replace the actual cost. Sales totalling EUR 1,000 or less a year are exempt. A main home used for 2 years is exempt. Losses carry forward 5 years. JSON: 0.34 for all categories (the statutory marginal rate on the gain). There is no exit tax for individuals. 2026 change: earn-out gains are now taxed in the year the amount is confirmed. A business-scale trader can be taxed partly as earned income (top marginal rate about 52%).

Dividends

For listed companies, 85% of the dividend is taxable at 30%/34%, so JSON 0.289 = 0.85 x 0.34. For unlisted companies, 25% is taxable on the part within an 8% return on net asset value up to EUR 150,000. Above that, within the 8% return, 85% is taxable. Above the 8% return, 75% is taxable as earned income. Foreign dividends get the same treatment if paid from the EU/EEA or a treaty country, which includes the US; foreign WHT is credited up to the treaty rate (Vero, "Foreign dividends"). Dividends from non-treaty, non-EEA countries are taxed in full as earned income. Outbound WHT is 30%/35% to non-resident individuals and 20% to non-resident companies. PwC lists about 76 treaty partners.

Inheritance and gifts to children

Inheritance tax is charged per heir, and the 2026 tables apply to deaths from 1 January 2026 (Vero inheritance tax calculator). Children (bracket 1) pay nothing below EUR 30,000. Above it, tax starts at EUR 100 + 7% of the excess over 30,000. The base amount is EUR 800 at 40,000 (+10%), EUR 2,800 at 60,000 (+13%), EUR 21,000 at 200,000 (+16%) and EUR 149,000 at 1,000,000 (+19%). JSON: marginal brackets from 30,000, bracket_mode marginal (checked: 100 + 0.07 x 10,000 = 800, and so on), with the flat EUR 100 omitted.

Gifts from one donor are added up over 3 years. They are exempt below EUR 7,500 (EUR 5,000 before 2026), and rates run from 8% to 17%. Gifts made within 3 years before death are added to the inheritance. The tax reaches worldwide assets if the deceased or the heir was resident; Finnish real estate is always taxable. Generational business relief exists but does not cover listed portfolios.

• Surviving spouse: tax class I with the same 7%-19% scale as children plus a EUR 90,000 spouse deduction (PerVL 12 §); about 18.6% on a EUR 10 million share, so taxed.

Wealth tax

None (abolished 2006; PwC). Municipal real estate tax is 0.41%–2.00%. Transfer tax is 3% on real property and 1.5% on unlisted securities; listed securities are generally exempt.

Special regimes

None relevant. The 25% tax-at-source regime for key employees applies to earned income only.

Holding structures

Structure modelled: family investment company (osakeyhtiö, Oy), regime id `holding_oy`.

• Company level: an unlisted Oy pays the 20% corporate rate (2026) on gains on portfolio shares; the participation exemption needs a 10% fixed-asset holding kept for one year. Dividends from listed companies in which an unlisted company holds less than 10% are 100% taxable, and dividends from outside the EU/EEA are fully taxable too, so portfolio dividends also bear 20%, with credit for foreign withholding (PwC, Corporate income determination, reviewed September 2026). Compare 34% on gains and 28.9% on listed dividends personally.
• JSON (structure-level): gains 0.2 on all classes (private business conservatively 0.2; exempt only if the participation-exemption conditions are met); dividends 0.2 domestic and foreign with credit.
• Payout: dividends from an unlisted company (Vero, "Dividend from an unlisted company", updated 1 January 2026): within an 8% return on the shares' mathematical value (net assets per the previous year's balance sheet), 25% is taxable capital income up to EUR 150,000 per shareholder a year (7.5% effective) and 85% above; above the 8% return, 75% is taxable earned income. The limit is per shareholder across all unlisted companies. payout_tax_rate 0.1546 = tax as a share of the gross dividend when two parents each net EUR 200,000 (EUR 400,000 in total, which is what the projection needs after tax). Per shareholder with gross dividend G above EUR 150,000: taxable capital income = 25% x 150,000 + 85% x (G - 150,000); tax = 30% x 30,000 + 34% x (taxable - 30,000). Net 200,000 needs G = EUR 236,568 and tax EUR 36,568 (15.46% of G); EUR 473,136 gross in total, tax EUR 73,136. The earlier 0.13 was the tax on a EUR 400,000 gross payout (EUR 52,000), which leaves only EUR 348,000 net. Bands are the 2026 figures; no statutory indexation was found, so in real terms the rate would rise over time, but the model keeps it fixed. Adult children as shareholders put more into the 25% band. The 8% limit needs book net assets of at least EUR 1.9m per EUR 150,000 of dividend.
• Wealth tax: none in Finland. Inheritance: the Oy shares are inherited at fair value under the ordinary rates (inherited from standard); generational business relief does not cover investment companies.
• Anti-avoidance and running: general anti-avoidance rule (Act on Assessment Procedure § 28); hidden profit distributions are taxed as dividends or earned income; repayment from the invested unrestricted equity fund of an unlisted company is taxed as a dividend. Running and set-up costs not sourced (omitted).
• Getting assets in: contributing an existing portfolio is a taxable sale for the individual at 30/34% and Finland gives no step-up on immigration.
• Exit and liquidation: no exit tax for individuals (Finnish nationals keep a 3-year residence tail). Liquidation proceeds are a capital gain for the shareholder at 30/34%. Dividends paid after emigration bear withholding.
• Pending: HE 151/2026 would cut the corporate rate to 18% from 2027 (not confirmed enacted). A VATT/Etla study proposes reworking the unlisted-dividend relief; no bill found.
• US citizens: excluded (US CFC/PFIC rules).
• Unverified: participation-exemption treatment of a private business stake in a passive holding's income source; audit thresholds; inheritance valuation of the Oy shares (deferred tax on latent gains).

Company taxation (kept separate from personal tax)

CIT is 20%. Government proposal HE 151/2026 would cut it to 18% from 2027 (and corporate WHT to 18%), with loss carry-forward extended to 25 years. Enactment was not confirmed as of 2026-10-15.

Cost of living notes

City: Helsinki.

• Prime rent (monthly): 4,000 EUR (2026). Median asking rent of 5 family homes of 113-164 m2 in the west-coast districts on Vuokraovi, read 2026-10-15: Lauttasaari, Helsinki (Katajaharju row house 5h 128 m2 EUR 2,900; Nahkahousunkuja 4, 3h 146 m2 EUR 4,000; Pohjoiskaari 6, 3h 113 m2 furnished EUR 3,700) and Espoo's Nuottaniemi (6h 164 m2 EUR 4,970) and Koukkuniemi (5h 159-167 m2 EUR 4,250). Range EUR 2,900-4,970. No 4+ room rental was listed in Munkkiniemi, Kulosaari or Westend itself (Westend had one studio). Asking rents; thin sample. Replaces EUR 2,490 (5 Qasa houses across Helsinki and Espoo). Source: Vuokraovi - Vuokra-asunnot Lauttasaari.
• International school fee (annual, per child): 16,608 EUR (2026). International School of Helsinki, grades 11-12 (IB Diploma), basic + supplementary tuition 2026-2027, annual payment. Entry and other fees extra. Source: ISH Summary of Annual Fees 2026-2027.
• Health insurance, housekeeper and price per m² not sourced. Vuokraovi and Oikotie listings could not be read automatically (scripted pages).

Open questions

• Whether HE 151/2026 (CIT 18%) has passed.
• The additional inheritance deduction for minor children in 2026.
• Whether the 3-year residence tail applies to inheritance and gift tax.
• The equity savings account cap.
• Cost-of-living items.
• Foreign withholding credit against the Oy's corporate tax: the Vero relief-for-double-taxation guidance was read only through search results; the credit is limited to the Finnish tax on the same income.
• Family rent (EUR 4,000) rests on 5 Vuokraovi listings in Lauttasaari, Nuottaniemi and Koukkuniemi; no 4+ room rentals were listed in Munkkiniemi, Kulosaari or Westend, and two of the five are 3-room flats of 113-146 m2.

Sources

• Finland - Individual - Income determination, PwC: https://taxsummaries.pwc.com/finland/individual/income-determination
• Finland - Individual - Other taxes, PwC: https://taxsummaries.pwc.com/finland/individual/other-taxes
• Finland - Individual - Residence, PwC: https://taxsummaries.pwc.com/finland/individual/residence
• Finland - Individual - Significant developments, PwC: https://taxsummaries.pwc.com/finland/individual/significant-developments
• Finland - Corporate - Withholding taxes, PwC: https://taxsummaries.pwc.com/finland/corporate/withholding-taxes
• Finland - Corporate - Taxes on corporate income, PwC: https://taxsummaries.pwc.com/finland/corporate/taxes-on-corporate-income
• Selling shares, Vero: https://www.vero.fi/en/individuals/property/investments/selling-shares/
• Foreign dividends, Vero: https://www.vero.fi/en/individuals/property/investments/dividends/foreign-dividends/
• Inheritance tax calculator, Vero: https://www.vero.fi/en/individuals/property/inheritance/inheritance-tax-calculator/
• Gift tax calculator, Vero: https://www.vero.fi/en/individuals/property/gifts/gift-tax-calculator/
• Government proposes CIT 18%, Vero: https://www.vero.fi/en/About-us/newsroom/news/uutiset/2026/the-government-proposes-to-lower-the-corporate-income-tax-rate-to-18-and-to-extend-the-deduction-period-for-business-losses/
• Finland: Tax measures in draft budget for 2027, KPMG: https://kpmg.com/us/en/taxnewsflash/news/2026/08/tnf-finland-tax-measures-in-draft-budget-for-2027.html
• ISH Summary of Annual Fees 2026-2027: https://ishelsinki.fi/wp-content/uploads/2026/04/Fee-summary-2026-2027-website.pdf
• Qasa - houses for rent, Helsinki
• Finland - Corporate - Income determination, PwC: https://taxsummaries.pwc.com/finland/corporate/income-determination
• Dividend from an unlisted company, Vero: https://vero.fi/en/individuals/property/investments/dividends/dividend-from-an-unlisted-company/
• Vuokraovi - Vuokra-asunnot Lauttasaari, Helsinki
• Vuokraovi - Vuokra-asunnot omakotitalo, Espoo
• Puolisovähennys ja henkivakuutuskorvaus, Verohallinto: https://www.vero.fi/syventavat-vero-ohjeet/kannanotot/47718/puolisovahennys_ja_henkivakuutuskorvau/

Change log

• 2026-10-15: initial research.
• 2026-10-15: data-quality pass: added prime rent (Qasa, Helsinki/Espoo 4-bedroom houses, EUR 2,490/month; thin sample).
• 2026-10-15: added the family investment Oy structure regime (holding_oy) and the Holding structures section; standard holding_company_notes updated.
• 2026-10-15: family rent re-checked against the upper-middle-class standard: kept (thin sample; open question added: may understate).
• 2026-10-15: family rent re-checked a second time: changed from EUR 2,490 (Qasa) to EUR 4,000 (5 Vuokraovi listings, Lauttasaari/Nuottaniemi/Koukkuniemi); still thin.
• 2026-10-16: added surviving-spouse treatment.
• 2026-10-16: holding_oy payout_tax_rate corrected from 0.13 to 0.1546 (tax on the gross dividend needed to net EUR 400,000 after tax); open question on the foreign withholding credit added.