Living in Finland: residency, the three-year rule, capital gains and dividends

In Finland, you are considered a tax resident if you have your permanent home there or if you reside there for more than six consecutive months. You are then taxed on your income earned both in Finland and abroad. Capital gains are taxed at 30% up to €30,000, and then at 34% thereafter. This page does not provide the state tax rates for earned income, as we were unable to obtain this information from an official source.

Resident or not: the permanent home and the six months

The Finnish tax authorities (VERO) use two criteria. You are fully taxable as a resident if Finland is "where you have your primary place to live – your permanent home." If you do not have a permanent home there, you are also taxable if you "stay there for more than 6 consecutive months.".

A stay is considered continuous even if you leave Finland from time to time. A non-resident is only taxed on their Finnish-source income; this applies if their permanent residence is not in Finland and their stay does not exceed six months. A foreign citizen ceases to be a resident as soon as they leave the country.

The welcome page for newcomers (March 3, 2025) summarizes the effect: by staying longer than six months, "you are taxable in Finland on income you receive from Finland or abroad." To work, a tax card is required, and this requires a Finnish personal identification number.

Leaving Finland: the three-year rule

The rule doesn't apply equally to everyone. According to Vero's page on leaving Finland (February 18, 2025), a Finnish citizen who moves abroad normally remains a Finnish tax resident for the year of their departure and the following three years: this is the three-year rule. The detailed guide (issued January 29, 2025) provides an exception: a citizen can be treated as a non-resident earlier if they demonstrate the absence of "substantial ties" with Finland. The conditions for these ties are not detailed here.

When two countries consider you a resident, the guide indicates that you are a resident of the country where you have a permanent home. It describes this rule within the framework of tax treaties. The complete order of the criteria in a treaty can be found in the text of the relevant treaty.

Capital income: 30 % then 34 %

Capital gains are considered capital income, and capital losses are deductible. For 2026, the rate is 30% of the % tax on capital income up to €30,000 and 34% of the % tax on income exceeding that amount.

Dividends: it all depends on the company

Listed company. 85 % of the dividend is taxable capital income, and 15 % is exempt. The paying company withholds 25.5 % of the total dividend amount.

Unlisted company. The dividend is taxed as capital income and/or earned income. The company withholds 7.5 times the taxable amount up to €150,000 and 28 times the taxable amount above that. The portion of the dividend up to 8 times the mathematical value of the shares is considered capital income: taxable at 25 times the taxable amount (75 times the taxable amount) up to €150,000, and then at 85 times the taxable amount (15 times the taxable amount) above that. The portion exceeding 8 times the taxable amount is considered earned income, taxable at 75 times the taxable amount. The €150,000 limit applies to the shareholder, not the company.

Foreign company. Dividends from companies in the European Union, the European Economic Area, or countries with which Finland has a dividend treaty are taxed as Finnish dividends. Finland does not withhold tax on dividends from foreign companies. The calculation of the foreign tax credit is explained on a separate page of Vero, which we have not read.

A customized securities account: up to €100,000

Vero describes a tax-efficient securities account (osakesäästötili, on Vero's "Equity savings account" page). Share purchases and sales are not taxed as long as you don't withdraw any capital. Profits are only taxed upon withdrawal, with a withholding tax of 30 % on profits up to €30,000 of capital income, and then 34 % on profits exceeding that amount. The rules:

• the maximum amount invested is €100,000; ;
• only one account at a time, otherwise a charge of €10 per day per account applies in case of multiple accounts, except for exceptions listed by Vero; ;
• Only cash can be deposited: you cannot transfer shares you already own; ;
• Losses are only deductible upon closing the account; ;
• The 15 % exemption on dividends does not apply.

If you remain a non-resident: Vero's deductions

For a non-resident, the payer withholds 35 % on salaries and 30 % on dividends, interest, and royalties, with some caveats: according to Vero's guide, most interest received by a non-resident from Finnish payers is exempt, and film royalties are excluded from withholding. Dividends paid on securities registered in the name of a nominee of a listed company are subject to 35 % if the payer does not have the beneficiary's information. Pensions are not subject to withholding. A treaty may reduce the rate: in its examples with Estonia and Germany, Vero indicates a cap of 15 % on dividends. The page is dated August 7, 2026.

Wealth: a Finnish property

If you live abroad and inherit real estate located in Finland, inheritance tax is due in Finland, even if the deceased also lived abroad. Finland has signed inheritance tax treaties with Denmark, Iceland, France, the Netherlands, Switzerland, and the United States, which may create exceptions. The declaration must reach Vero within three months of the death. The tax rates are not listed in the documents we consulted.

Contributions 2026 and audiovisual tax

For 2026, Vero indicates a health insurance contribution of 1.10 % on wages and employment income, and 1.49 % on pensions, benefits, and other income. The YLE tax, levied on public broadcasting, is 2.50 % on net employment and capital income exceeding €15,150, capped at €160: it is not due for annual income below €15,150.

What this page does not cover

It does not provide the scale of state income tax, municipal tax, social security contributions for 2026, or the taxation of savings in local insurance contracts. It does not detail the tax treaty between France and Finland.

A dividend of €40,000: a numerical example (fictitious profile)

Situation. A hypothetical Finnish tax resident receives €40,000 in dividends from a listed company. They have no other capital income in 2026. The example assumes the €30,000 threshold applies to the taxable portion of €34,000; Vero's page does not specify this.

Issue. He wants to know the tax on this dividend and compare it to the withholding tax made by the company.

Strategy. He applies Vero's rule: 85 % of the dividend is taxable as capital income, 30 % up to €30,000 and 34 % beyond that.

Result. The taxable portion is €34,000. The tax is €9,000 on €30,000, plus €1,360 on €4,000, totaling €10,360, or 25.9% of the dividend. The withholding tax of 25.5% deducted by the company amounts to €10,200. The adjustment mechanism between these two amounts is not detailed in the pages reviewed. The profile and amounts are fictitious.

What changes depending on your situation

• Your permanent home and the length of your stay.
• Your nationality, which sets the rule of three years at departure.
• The nature of your income: salary, listed or unlisted dividends, capital gains, pension.
• The amount of your capital income over the year, which determines the transition from 30 % to 34 %.
• The tax treaty between France and Finland should be checked before making a decision.

The rule depends on your situation. No results are guaranteed.