Starting a business in
🇫🇮Finland
Checked November 9, 2026 · How we score
Corporate tax
20%
Top income tax
48.4%
Setup from
$800
all-in, first year
Time to form
14 days
visit usually needed
What is the corporate tax rate in Finland?
The headline corporate tax rate in Finland is 20% in 2026, and individuals pay up to 48.4%. Flat 20% corporate income tax on worldwide profit of Finnish companies. Dividends from Finnish companies to EU parent companies are generally exempt from withholding tax; losses can be carried forward 10 years.
| Corporate income tax | 20% Flat 20% corporate income tax on worldwide profit of Finnish companies. Dividends from Finnish companies to EU parent companies are generally exempt from withholding tax; losses can be carried forward 10 years. |
|---|---|
| Personal income tax (top) | 48.4% State tax up to 37.5% on earned income above about EUR 52,100, plus municipal tax of 4.7–10.9%, gives a top marginal rate of about 48%. Capital income is taxed at 30%, or 34% above EUR 30,000 a year. |
| Tax system | Worldwide income |
| Capital gains tax | 34%Capital gains of resident individuals are taxed as capital income at 30% (34% above EUR 30,000). Sales of a main home held at least two years are exempt. |
| Dividend withholding (non-residents) | 30% |
| VAT / GST | 25.5% |
| Social security | Employer social contributions are roughly 20–21% of payroll; employees pay about 7–9% in pension, unemployment and health contributions. VAT rose to 25.5% in September 2024. |
Forming a company in Finland
| Usual entity | Oy (private limited company) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $800–$2,500 |
| Annual running cost | $2,500–$7,000 |
| Time to incorporate | 14 days |
| Form remotely as a foreigner | No |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
Non-EU founders usually need a residence permit (entrepreneur or Startup Permit) and a Finnish personal ID code. At least one board member or the managing director must live in the EEA unless the Patent and Registration Office grants an exemption.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 4/5 (1 = easiest) |
Taxes for individuals living in Finland
Residents are taxed on worldwide income with credit for foreign tax under treaties. Finland has no remittance basis or special exemption for foreign income.
| Foreign income of residents | Taxed |
|---|---|
| Income tax structure | Progressive rates |
| Inheritance / estate tax | 19%Inheritance and gift tax for children and spouse ranges from 7% to 19% above a EUR 20,000 allowance; other heirs pay 13–33%. |
| Wealth tax | No |
| Annual property tax on your home | Yes |
| Exit tax when you leave | No |
| When you become tax resident | Resident if your permanent home and family are in Finland, or you stay in Finland more than six consecutive months. Finnish citizens leaving Finland can remain taxable for three further years if they keep substantial ties. |
Special tax regimes
Key employee source-tax regime
Foreign experts earning at least EUR 5,800 a month can pay a flat 32% source tax on salary for up to 48 months.
Startup Permit and Entrepreneur permit
Residence routes for founders of scalable startups verified by Business Finland, and for entrepreneurs with a viable business plan.
Pros and cons
Why founders pick Finland
- 20% flat corporate tax, below the EU average
- No minimum share capital for an Oy
- Strong reputation with investors and banks
- Excellent digital public services and startup ecosystem
Watch out for
- High personal taxes, about 48% at the top plus 25.5% VAT
- Non-EU founders need a residence permit before most banking and registration steps
- Board member in the EEA required
- No wealth or exit tax, but 34% on large capital income
Best for: Founders living in Finland or the EU · Gaming, deep-tech and cleantech startups · Companies wanting a top-tier EU reputation
Finland: common questions
Is Finland a tax haven?
No. Finland is a normal-tax country: companies pay 20% corporate tax and the top personal income tax rate is 48.4%. It does offer special regimes for some newcomers, such as Key employee source-tax regime.
What is the corporate tax rate in Finland?
The corporate tax rate in Finland is a flat 20% of taxable profit. Dividends received by companies are largely exempt, and dividends paid to EU parent companies are generally free of withholding tax. Resident individuals pay 30–34% on dividends and capital gains.
How do I register a company in Finland as a foreigner?
Register an Oy with the Finnish Patent and Registration Office (PRH). The state fee is EUR 380 online and there is no minimum capital. You need a Finnish ID code, a bank account and an EEA-resident board member or managing director, so plan on 2–4 weeks and about USD 800–2,500 in total costs.
What is the income tax rate in Finland?
State income tax reaches 37.5% above about EUR 52,100, and municipal tax adds 4.7–10.9%, so the top marginal rate is roughly 42–48% depending on the municipality. Capital income is taxed at 30%, or 34% above EUR 30,000.
Does Finland have an exit tax or wealth tax?
No wealth tax and no general exit tax exist for individuals. Finnish citizens who move abroad can stay liable for three years if they keep substantial ties to Finland, so check your residency position with the Tax Administration.
Can a non-EU citizen open a company in Finland?
Yes, but non-EU citizens generally need a residence permit (Startup Permit or entrepreneur permit) to live and run the business there. Without residence it is hard to get a bank account and the required EEA-resident board member.
Sources
- Finnish Tax Administration (Vero.fi)
- Finnish Patent and Registration Office (PRH)
- PwC Worldwide Tax Summaries – Finland
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.