Finland

The law change for 2024 concerning foreign employees coming to work in Finland means that the favorable tax treatment of key personnel coming to Finland from abroad can be applied for a period of 84 months (7 years) instead of the previous 48 months (4 years). The change applies to both new key personnel arriving to Finland in 2024 and persons who have arrived in recent years, to whom key personnel withholding tax still applies in 1.1.2024.

The deduction for travel between home and work will decrease in 2024, as the excess will rise from €750 to €900 and temporary increases given for 2023 will be eliminated. The maximum amount of the travel expenses deduction is €7,000 (€8,400 in 2023).

From 2024 onwards, the maximum amount that can be deposited in a equity savings account is EUR 100 000, compared to EUR 50 000 previously.

The transfer tax on real estate will be reduced from 4% to 3% and the transfer tax on housing and real estate shares from 2% to 1.5%. The transfer tax on other securities will be reduced from 1.6% to 1.5%. The change will apply retroactively to transactions carried out on or after 12 October 2023. The Tax Administration will refund the excess transfer tax, plus interest, to customers who have made housing and share transactions in late 2023. Refunds will be paid in early 2024.

The transfer tax exemption for first homes is also abolished from 1.1.2024.

The inheritance tax payment period will be extended from two years to ten years. The change means that inheritance tax will not be subject to enforcement, will not be the subject of a bankruptcy petition and will not be entered in the register of tax debtors until 10 years after the first due date. The amendment applies to inheritance taxes for which the first instalment is due on or after 1.1.2024.

However, inheritance tax paid after the due date will be subject to interest on arrears. From 1.1.2024, the interest rate for inheritance tax will be lower than the interest rate for other taxes. From 2024, the default interest rate for inheritance tax will be 7.5% (for other taxes 11%). The changes entered into force on 1.1.2024.