Finland

Value-added tax (VAT)

The standard VAT rate is 25.5%.

A reduced rate of 13.5% is applied to, for example, restaurant and catering services, books, accommodation, passenger transport, and food and animal feed. Prior to 1 January 2026, the applicable rate was 14%.

A reduced rate of 10% is applied to newspapers and magazines.

A zero rate applies in certain instances (e.g. intra-Community supplies of goods and exports of goods). Additionally, certain services (e.g. financial services, insurance services, and certain educational services) are exempted from VAT.

Customs duties

Goods imported into Finland from outside the European Union need to be customs cleared and might be subject to customs duties. The rates of customs duties are determined at the EU level.

Carbon Border Adjustment Mechanism (CBAM)

CBAM is also applicable for imports into Finland. CBAM entered into force in its transitional phase as of 1 October 2023 under regulation (EU) 2023/956, as subsequently amended by Regulation (EU) 2025/2083 to simplify and strengthen the mechanism. The transitional period (reporting only, with quarterly reports) ran until 31 December 2025. The definitive regime commenced on 1 January 2026. It initially applies to imports into the European Union of certain goods and selected precursors whose production is carbon-intensive and at significant risk of carbon leakage: cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen.

From 1 January 2026, importers whose cumulative imports exceed 50 tonnes of CBAM goods per calendar year must apply for the status of authorised CBAM declarant. Member States will sell CBAM certificates through a common central platform from 1 February 2027. Authorised CBAM declarants must declare each year the quantity of goods imported into the European Union in the preceding year and their embedded greenhouse gas (GHG) emissions and surrender the corresponding number of CBAM certificates by 30 September of each year (first surrender deadline: 30 September 2027 for 2026 imports). The price of certificates will be calculated based on the quarterly average of EU ETS auction prices for 2026 imports and weekly averages from 2027 onwards. Key implementing acts adopted in December 2025 govern the CBAM Registry, authorised CBAM declarant procedures, verification principles, default values, and certificate pricing.

EU Deforestation Regulation (EUDR)

The EUDR (Regulation (EU) 2023/1115), as amended by Regulation (EU) 2024/3234 and Regulation (EU) 2025/2650, requires Finnish companies that import or export covered commodities (cattle, cocoa, coffee, palm oil, rubber, soy, and wood) to ensure products are deforestation-free (i.e., produced on land not deforested after 31 December 2020) and legally produced. Following two postponements, the main EUDR obligations will apply from 30 December 2026 for large and medium-sized operators and traders, and from 30 June 2027 for micro and small operators.

Under the targeted revision adopted in December 2025, the obligation to submit a due diligence statement lies solely with operators who first place the product on the EU market; downstream operators and traders need only collect and retain the reference number of the initial declaration. Micro and small primary operators in low-risk countries may submit a one-time simplified declaration in the EU Information System. Finnish importers must still perform risk assessments and mitigation measures, while exporters (notably in the forestry, pulp, and paper sectors) must demonstrate traceability and compliance for both domestically sourced materials and any imported inputs.

Export Control

Export controls are regulatory restrictions that govern the export, re-export, transfer, and brokering of certain goods, software, technology, and services that could have sensitive or strategic applications — particularly dual-use items that have both civilian and military uses. At the EU level, export controls are primarily governed by Regulation (EU) 2021/821 (the Dual-Use Regulation), which sets out a common control list (Annex I) and establishes licensing requirements for exports outside the European Union. In Finland, the Act on the Export Control of Dual-Use Items (500/2024) complements the EU framework and designates the Ministry for Foreign Affairs as the competent licensing authority, while Finnish Customs enforces export control requirements. In addition to dual-use controls, companies operating in or exporting from Finland must also consider EU restrictive measures (sanctions), which may prohibit or restrict exports of certain goods and technology to designated countries, entities, or individuals.

Excise duties

Product-specific excise duties are levied in Finland on several categories of goods, including alcohol and alcoholic beverages, tobacco and nicotine products, liquid fuels, electricity and certain other energy products, soft drinks, beverage containers, and certain mined minerals. Excise duties are generally imposed on products manufactured in Finland, received from another EU Member State, or imported into Finland from outside the European Union, and the tax liability typically arises when the products are released for consumption in Finland.

Finland applies both EU-harmonised excise duties and national excise duties. EU-harmonised duties apply, for example, to alcohol, tobacco products and liquid fuels, while national excise duties apply to products such as soft drinks and beverage containers. In addition, strategic stockpile fee is collected in connection with certain energy-related excise duties to support Finland’s security of supply system.

Businesses engaged in activities involving excise goods may need to register with the Finnish Tax Administration or obtain an excise duty authorisation. Excise duties are self-assessed taxes, and regular taxpayers generally file and pay excise duties through the Tax Administration’s electronic services.

Finland also provides exemptions, refunds and reduced rates in specific circumstances, particularly in the energy sector. For example, electricity is taxed in two categories, with a lower category generally available for example for separately metered electricity used in industrial manufacturing.

Real estate tax

Municipalities impose an annual real estate tax. The tax is levied on the taxable value of buildings and land. The municipal council determines the applicable tax rates, although the minimum and maximum tax rates are set by tax legislation. The tax is deductible from taxable business income or agricultural income if the real estate is used for business or agricultural purposes. The tax is deductible from taxable income of the so-called 'other-source income' if the real estate is used to acquire other taxable income than business income.

Transfer tax

Amendments to the Act on transfer taxation entered into force from January 2024 and 2025 onwards. The first amendment reduced applicable transfer tax rates, and the second amendment made the companies distributing dividends liable for transfer tax if the company distributes dividends as shares or other securities.

Generally, the transfer tax is payable by the transferee. However, a dividend distributing company is liable to file a transfer tax return and pay the tax on dividends available to be drawn as shares or other securities on or after 1 January 2025. If the decision to distribute dividends does not specify the date on which the dividends become available to be drawn, the company is liable for transfer tax if the decision is made on or after 1 January 2025. The company can file the transfer tax return on dividends distributed as securities in the online portal of the Finnish tax authorities

A transfer tax of 3% of the sales price is payable on transfer of real estate located in Finland. A transfer of shares in Finnish companies and other domestic securities is subject to a transfer tax of 1.5%. A transfer of shares in Finnish housing companies and real estate companies is subject to a transfer tax of 1.5%.

A transfer tax of 1.5% is payable on a transfer of shares in a foreign company whose activities consist mainly of owning or holding (directly or indirectly) real estates in Finland, provided that either the transferor or the transferee is a resident of Finland or, alternatively, a Finnish branch of a foreign credit institution, a Finnish branch of a foreign investment firm, or a Finnish branch of a foreign fund management company.

Transfer tax is calculated as a certain percentage of the sales price and potential other consideration. The consideration includes payments made by the transferee to other parties than the transferor as well as obligations assumed by the transferee towards the transferor or another party, provided that such payment or obligation accrues to the benefit of the transferor. If the transferee acquires shareholder loans from the transferor in connection with the share acquisition, the amount of shareholder loans is included in the transfer tax base as of 2024 onwards. In case of transfer of shares in a real estate company, additional provisions concerning transfer tax base are applicable.

No transfer tax is payable on the transfer of securities that are subject to trading on a regulated market or multilateral trading facility in the European Economic Area (EEA). Similarly, no transfer tax is payable if both the seller and the transferee are non-residents. Transfer tax is, however, always payable on transfers between non-residents if the transferred shares are shares in a Finnish housing or real estate company.

Stamp tax

No stamp taxes are levied in Finland.

Payroll taxes

The employer has a liability to withhold income taxes on remuneration subject to tax in Finland, including cash remuneration and non-cash benefits based on their taxable value. The taxes can, however, be withheld only on cash compensation, and the maximum income tax withholding liability equals the amount of cash remuneration.

Social security contributions

According to the Finnish social security legislation, both Finnish and foreign employers have a liability to pay several social security payments in Finland in cases where an employee is covered by the mandatory Finnish social security. The liability concerns all employers, regardless of the form of the company and whether the foreign company has a PE in Finland. The percentage rates for the employer’s (and employee’s) social security contributions are revised on an annual basis.

Compulsory social security contributions payable by the employer and employee are described in the Other taxes section in the Individual tax summary.

If an employee is regarded as a foreign-posted employee and has an A1 certificate or a certificate of coverage from one's home country stating the other country's social security coverage, the liability to take out Finnish social insurances and pay the respective contributions is excluded or limited.