Finland

Individual - Foreign tax relief and tax treaties

Last reviewed - 31 December 2021

Foreign tax relief

Finnish residents can obtain credit for final income taxes paid abroad against income taxes payable in Finland on the same income. However, other than foreign national (federal) taxes, other taxes cannot be credited in Finland unless they are covered in an appropriate tax treaty. In some tax treaties, the exemption with progression method is used instead of the credit method in eliminating double taxation, either as a main rule or for some income types. Also, foreign advance taxes can be credited, but the credit needs to be finally confirmed when the final amount of foreign taxes is available, and a correction of assessment may be needed. Any unused foreign tax credits can be carried forward for five years.

Tax treaties

Double tax treaties (DTTs)

Finland has concluded a tax treaty for avoidance of double-taxation and the prevention of fiscal evasion with respect to taxes on income and on capital with the following countries:

Argentina Estonia Luxembourg South Africa
Armenia Faroe Islands Macedonia Spain
Australia France Malaysia Sri Lanka
Austria Georgia Malta Sweden
Aruba Germany Mexico Switzerland
Azerbaijan Greece Moldova Tajikistan
Barbados Guernsey Montenegro* Tanzania
Belarus Hungary Morocco Thailand
Belgium Iceland Netherlands Turkey
Bermuda India Netherlands Antilles Turkmenistan
Bosnia and Herzegovina* Indonesia New Zealand Ukraine
Brazil Ireland, Republic of Norway United Arab Emirates
British Virgin Islands Isle of Man Pakistan United Kingdom
Bulgaria Israel Philippines United States
Canada Italy Poland Uruguay
Cayman Islands Japan Portugal** Uzbekistan
China, People Republic of Jersey Romania Vietnam
Croatia* Kazakhstan Russia (Former) Yugoslavia
Cyprus Korea, Republic of Serbia* Zambia
Czech Republic Kyrgyzstan Singapore
Denmark Latvia Slovak Republic
Egypt Lithuania Slovenia

* The treaty with former Yugoslavia is to be regarded as remaining in force.
** The old treaty with Portugal has been terminated and has not been applicable as of 1 January 2019. The new treaty is not in force; consequently, Finland has no applicable tax treaty with Portugal.

Social security agreements

European Commission (EC) regulations 883/2004, 1408/71, and 987/2009 apply to EU/EEA member states:

Austria Greece Norway
Belgium Hungary Poland
Chile Iceland Portugal
Cyprus (the Greek part) Italy Romania
Czech Republic Latvia Slovakia
Denmark Liechtenstein Slovenia
Estonia Lithuania Spain
Finland Luxembourg Sweden
France Malta
Germany Netherlands

Switzerland: The aforementioned regulations are applicable on the basis of the agreement on free movement between Switzerland and the European Union.

United Kingdom: The aforementioned regulations are applicable on the basis of the agreement on trade and cooperation between the United Kingdom and the European Union.

Additionally, Finland has concluded social security agreements with Australia, Canada, Chile, China, India, Israel, Quebec, South Korea, and the United States.