Tax in Åland
Åland has its own regulations regarding municipal taxation and certain deductions, but Finnish tax rules generally apply. Taxation in Finland and Åland depends on whether a person has unlimited or limited tax liability. Persons with unlimited tax liability are permanent residents of Finland or Åland and pay tax on all their income. Persons who live abroad and stay in Finland for no more than six months are generally have limited tax liability and pay tax only on income earned in Finland.
For more information on tax cards, tax returns, and who is required to pay taxes in Finland and Åland, go to the page Taxation in Finland. Information on taxation in Åland is also available on the Finnish Tax Administration’s website.
Åland deductions in taxation
Åland has its own regulations regarding the rate of municipal tax and the deductions that may be claimed under the municipal tax system. For this reason, tax deductions in Åland may differ from those in Finland.
For more information on the Åland tax deductions and how to report them, visit the Tax Administration’s website or see the tabs below.
Tax deductions may be granted for the costs of renting a home in your place of work due to the transport conditions. For the deduction to be granted, the round-trip travel time between home and work must be over three hours, and the journey must include a ferry service. The home must be a rented dwelling in a municipality in Åland, and the employer must be based in the same municipality.
Travel expenses for commuting between home and work using your own car are tax-deductible up to a maximum of EUR 6,000. First, a deductible is subtracted from the travel expenses, which means that a deduction is granted only for the amount exceeding the deductible. If more than half of your travel expenses consist of public transport, there is no deductible. The deductible is also lower during periods of unemployment or family leave.
Åland students apply for student financial aid and provincial guarantees for student loans from the Åland Labour Market and Student Service Authority (AMS). Read more about student financial aid and provincial guarantees on the page Student financial aid in Åland.
Persons whose municipality of residence is in Åland and who have received basic education or pursued full-time studies at a university or other educational institution in Finland or abroad may be granted a deduction of 340 euros per semester. When applying, you must specify the programme and duration of study. Deductions may also be granted for participation in full-time distance learning.
If you started studying before 1 August 2005 and are repaying your student loan, you can claim a student loan tax deduction. The student loan must have a provincial guarantee or the Government of Åland or a student financial aid board appointed by the Government of Åland must have granted you a provincial guarantee and interest subsidy for it. The deduction is granted for the first time in the year in which the interest subsidy ceases and in the following years when amortisation is made.
For studies that began after August 1, 2005, persons whose municipality of residence is in Åland must apply for the student loan deduction through Kela. For more information, visit Kela’s website under Student loan tax deduction.
If your municipality of residence is in Åland and you work on a road ferry, you are not entitled to a deduction for seafarer’s income in municipal taxation. Instead, there is a right to deduct travel expenses, costs incurred in earning income and contributions to unemployment funds.
Persons whose municipality of residence is in Åland are entitled to a disability deduction in municipal taxation, even though the disability deduction has been discontinued for persons residing on the Finnish mainland. The disability deduction is granted to persons with a permanent disability rating of at least 30% resulting from illness, a physical defect or a physical injury. The maximum deduction is 440 euros.
Read more about other tax deductions that may apply to people with disabilities on Info Norden’s page Information for persons with disabilities moving to Åland.
Taxation between the Nordic countries
A person who resides in one country and has income or assets in another country may be liable for taxes in both countries. The Nordic Tax Treaty contains rules on which Nordic country may tax the income and how double taxation is avoided.
Nordisk eTax is a collaboration between the tax authorities of the Nordic countries and serves as an information portal on taxation in the Nordic region. The website provides guidance for persons who work, move or commute across Nordic borders, as well as information on where taxes are due.
More information
On the Info Norden website you can find information on taxation in the other Nordic countries, as well as contact details for the authorities that can answer questions.
Please fill in our contact form if you have any questions or if you have encountered an obstacle in another Nordic country.
NB! If you have questions regarding the processing of a specific case or application, or other personal matters, please contact the relevant authority directly.