# Finland: taxes, residence and cost of living

Source: https://domicile.wiki/places/finland/ (domicile.wiki, researched 2026-10-16). Data licence CC BY-SA 4.0. Research, not tax or legal advice.

## At a glance

For an EU-citizen family of five living off a EUR 30M portfolio (the guide's default reader).

- Score for a wealthy family: 76 / 100
- Tax on a €30M portfolio: €408,428 a year · Private investment company (osakeyhtiö, Oy)
- Wealth tax: none
- Children inherit: taxed
- After 60 years: €103,578,000 of €30,000,000 (with no tax at all: €286,928,000)
- Living costs, family of five: €246,667 a year
- EU member: yes
- Currency: EUR
- Capital: Helsinki

## Tax on investments, inheritance and wealth

Capital gains taxed at 34% at the top, listed dividends at an effective 28.9%. Inheritance tax per child: tax-free under EUR 30,000 (2026), then 7%-19%, about 18-19% on a large share. No wealth tax. EU member, no special regime for wealthy arrivals. A family investment Oy pays 20% on gains and dividends, and pays out lightly taxed unlisted-company dividends (7.5% on the first EUR 150,000 per shareholder within an 8% return).

- **Ordinary tax residence**: Residents are taxed on worldwide income. Capital income (gains, dividends, interest, rents) is taxed separately from earned income at 30%/34%.
- **Private investment company (osakeyhtiö, Oy)**: The family holds its portfolio through a Finnish private limited company (Oy). The company pays the 20% corporate rate on portfolio gains and on listed-share dividends (portfolio dividends are fully taxable in an unlisted company), instead of 34% / 28.9% personally. Withdrawals are dividends from an unlisted company, which are taxed lightly: within an 8% return on the shares' net asset value, 25% of the first EUR 150,000 per shareholder a year is taxable capital income (7.5% effective). No wealth tax; inheritance tax applies to the Oy shares as to other assets (inherited from the standard regime).

## Income tax

State progressive scale (12.64% to 37.5% as PwC lists it) plus municipal tax of 4.70-10.90% (7.5% used). Employee contributions about 10.17%; YEL for self-employed 24.4%.

## Inheritance law and trusts

Children are guaranteed half of their intestate share. A foreign resident can choose the law of their nationality (EU Succession Regulation art. 22). Finland has no trust law; foundations exist but family-benefit foundations get no tax exemption and their precise limits were not confirmed.

## Daily life (0-100, higher is better)

- Safety and personal security: 77
- Political and institutional stability: 79
- Corruption and government integrity: 90
- Legal system and property rights: 88
- Healthcare quality and access: 86
- Education quality: 65
- Human development and quality of life: 90
- Infrastructure and connectivity: 95
- Cost of living and housing: 69
- Business opportunities and economy: 84
- Cultural fit and lifestyle: 58

## 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](https://www.vuokraovi.com/vuokra-asunnot/helsinki/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](https://ishelsinki.fi/wp-content/uploads/2026/04/Fee-summary-2026-2027-website.pdf).
- 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](https://qasa.com/fi/en/find-home?homeTypes=house&minRoomCount=5&searchAreas=Helsinki%7E%7Efi)
- 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](https://www.vuokraovi.com/vuokra-asunnot/helsinki/lauttasaari)
- [Vuokraovi - Vuokra-asunnot omakotitalo, Espoo](https://www.vuokraovi.com/vuokra-asunnot/espoo/omakotitalo)
- 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.


## Residence and succession sources

- [European e-Justice: Succession, Finland](https://e-justice.europa.eu/166/EN/succession?FINLAND&member=1) — European e-Justice Portal
- [Regulation (EU) No 650/2012 on succession](https://eur-lex.europa.eu/eli/reg/2012/650/oj) — European Union
- [HCCH status table: Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition](https://www.hcch.net/en/instruments/conventions/status-table/?cid=59) — Hague Conference on Private International Law
- [Philea: Legal Environment for Philanthropy in Europe, Finland](https://philea.eu/wp-content/uploads/2024/11/Finland-Philea-2024-Legal-Environment-for-Philanthropy-in-Europe.pdf) — Philea