Individual - Foreign tax relief and tax treatiesLast reviewed - 03 February 2023
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.
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:
|Aruba (1)||Germany (4)||Mexico||Switzerland|
|Bermuda (2)||India||Netherlands Antilles (1)||Turkmenistan|
|Bosnia and Herzegovina (3)||Indonesia||New Zealand||Ukraine|
|Brazil||Ireland, Republic of||Norway||United Arab Emirates|
|British Virgin Islands||Isle of Man||Pakistan||United Kingdom|
|Cayman Islands||Japan||Portugal (not in force) (5)||Uzbekistan|
|China, People Republic of||Jersey||Romania||Vietnam|
|Croatia (3)||Kazakhstan||Russia||(Former) Yugoslavia|
|Cyprus||Korea, Republic of||Serbia (3)||Zambia|
- Agreement to promote economic relations no longer in force as of 1 January 2022.
- An agreement on tax information + a limited-scope tax treaty.
- The treaty with former Yugoslavia is to be regarded as remaining in force.
- The treaty with Germany was amended in December 2021.
- 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:
|Cyprus (the Greek part)||Italy||Romania|
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, Japan, Quebec, South Korea, and the United States.