Finland is not a tax haven. You probably have other good reasons for investing in Finland or involving yourself in Finnish trade. The good news is that the tax situation is not as bad as you might expect.

Finnish taxation is a lot friendlier than its public image might suggest and even offers some significant incentives to foreign investors. There is no property tax in Finland and capital income is taxed at a flat rate of 28% only. And there is good news for shareholders: a proportion of dividends is taxed at this 28% flat rate, even if the dividends are paid to individual shareholders. There is also a flat rate source tax of 35% on salary income for foreign key employees during their work assignment in Finland.

Finland has also concluded bilateral tax conventions with more than 60 countries, including practically all its important trade partners. By establishing binding rules on the tax competence of both countries involved and granting tax exemptions or credits, as the case may be, tax conventions avoid double taxation and provide a reliable framework for taxation.

Last not least, Finland provides not only a reasonable and fair taxation system, but also a functioning infrastructure of service-minded professionals, who are happy to provide assistance, whether they are local tax officials or private advisors on Finnish taxation. You will always be able to find out in advance how your business activities will be taxed.