Finland tax
Special regime for new residents: Key employee tax at source.
Checked against official sources on Change log
Special regimes for new residents
Special regime
Key employee tax at source (25% from 1 January 2026)
25% tax
Details
- On: Wage income for the key position (final tax withheld by the employer)
- Who: Gross cash salary of at least EUR 5,800 (≈ $6,480) per month for the key position
- Limit: €5,800/mo ≈ $6,480
Eligible new arrivals pay a flat 25% tax at source on key-employee wages for up to 84 months (32% until end of 2025). 5 3
Taxed on
Wage income for the key position (final tax withheld by the employer); no insured-person health insurance contribution collected.
Who it applies to
- Gross cash salary of at least EUR 5,800 (≈ $6,480) per month for the key position; in-kind benefits are not counted.
- Duties require special expertise; not a resident taxpayer in Finland during the 5 calendar years before starting work; becomes resident on starting work.
- Pay is sourced to Finland: work mainly in Finland for a Finnish employer, or pay made through a Finnish party at a foreign employer's request.
- Teachers and researchers at higher education institutions need neither the special-expertise duties nor the salary threshold.
- Request the key employee tax card within 90 days after starting work.
Exclusions
- Finnish citizens qualify from 2026 only if non-resident for the 5 preceding calendar years, and for at most 60 months.
- Does not apply to persons who became resident other than by starting work as employees.
- Final tax withheld at source: no deductions are available, including against other income.
Limits
- EUR 5,800 a month (≈ $6,480) · Minimum gross monthly cash salary excluding in-kind benefits.
Tax residence
Taxpayer becomes resident at the start of work; benefit lasts for the first 84 months of work (60 for Finnish citizens).
Visas
Independent of the residence permit; the permit route does not itself confer the regime.
Other taxes
No Finnish health care or daily allowance contributions are collected; the employer still withholds the employee share of pension and unemployment insurance contributions unless an A1 or equivalent certificate shows cover in the home country. Effective since 1 January 2026 (32% until the end of 2025). From 2026, for a key employee who must pay municipal income tax to a municipality in Åland, the tax at source is 7.3% and Åland municipal income tax is paid in addition.
Checked against official sources on Change log
Which visas the regimes apply to
- Key employee tax at source: Employee permit, Specialist permit, Management permit, Blue Card, Researcher permit. Independent of the residence permit; the permit route does not itself confer the regime.
Standard rules and foreign-source income
Standard rules
Earned income tax and contributions (2026)
Progressive rates
Details
- On: Residents are taxed on worldwide income, including foreign-source income
- Who: Resident taxpayer: main abode and home in Finland
- Limit: €30k/yr ≈ $34k
Progressive state tax plus municipal tax on worldwide income of residents; example effective rate on pay of EUR 30,000 (≈ $33,500) is 8.5% and on EUR 70,000 (≈ $78,200) is 25.0% (Helsinki resident, Lutheran church member). 1 2 3 4
Taxed on
Residents are taxed on worldwide income, including foreign-source income, with relief under tax treaties. Wages and other earned income are taxed progressively; capital income is taxed separately at 30% up to EUR 30,000 (≈ $33,500) and 34% above.
Who it applies to
- Resident taxpayer: main abode and home in Finland, or a continuous stay of more than six months.
Exclusions
- Non-residents are taxed on Finnish-source income; municipal tax rate for non-residents is 7.60%.
Limits
- EUR 30,000 a year (≈ $33,500) · Capital income taxed at 30% up to this amount and 34% on the excess.
- EUR 17,255 a year (≈ $19,300) · Daily allowance contribution 0.88% for wage earners at or above this income.
Tax residence
A person is resident with a main abode and home in Finland, or after a continuous stay of more than six months (exactly six months is not enough); temporary absences do not interrupt the stay. The tax liability starts on arrival.
Visas
Tax residency is separate from permit status.
Other taxes
Health care contribution 1.10% on wage income; employee pension and unemployment contributions about 8.19% in the example; public broadcasting tax 2.50% over EUR 15,150 (≈ $16,900) income, max EUR 160 (≈ $180).
Checked against official sources on Change log
VAT, social security and other taxes
- Health care contribution 1.10% on wage income; employee pension and unemployment contributions about 8.19% in the example; public broadcasting tax 2.50% over EUR 15,150 (≈ $16,900) income, max EUR 160 (≈ $180).
- No Finnish health care or daily allowance contributions are collected; the employer still withholds the employee share of pension and unemployment insurance contributions unless an A1 or equivalent certificate shows cover in the home country. Effective since 1 January 2026 (32% until the end of 2025). From 2026, for a key employee who must pay municipal income tax to a municipality in Åland, the tax at source is 7.3% and Åland municipal income tax is paid in addition.
Questions people ask
Who qualifies for Key employee tax at source?
Gross cash salary of at least EUR 5,800 (≈ $6,480) per month for the key position; in-kind benefits are not counted. Independent of the residence permit; the permit route does not itself confer the regime.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (5)
Official sources
- Tax rates on pay, pensions and benefits in 2026 · Finnish Tax Administration (Vero) · checked 2026-10-11
- Tax bases (2026 contributions and capital income rates) · Finnish Tax Administration (Vero) · checked 2026-10-11
- Taxation of key employees (detailed guidance) · Finnish Tax Administration (Vero) · checked 2026-10-11
- Tax residency, non-residency and residency under a tax treaty (natural persons) · Finnish Tax Administration (Vero Skatt) · checked 2026-10-11
- Key employees from other countries · Finnish Tax Administration (Vero) · checked 2026-10-11