The general rule is that taxes are paid to the country where you work. There are many exceptions to this rule, however. As well as tax residency and non-residency, determination of the taxation country depends on whether an employee is a posted worker, whether they live in a border municipality and whether they work in one or more countries at the same time.
More detailed information on taxation is available on the Finnish Tax Administration’s website and the Nordic tax portal.
You can find more information on completing a tax return and tax cards on the page Tax card and tax return in Finland.
Tax residency and non-residency
A person who is tax resident in Finland pays tax to Finland on their income both in Finland and from elsewhere. You can find more information on taxation of earned income in the section Taxes in Finland.
A person whose permanent residence (domicile) is in Finland is a resident taxpayer. A person who comes to Finland from another country for over six months is also a resident taxpayer for the period of their stay. Temporary absence from the country does not break off the six-month period.
A Finnish citizen moving abroad is a resident taxpayer in Finland in the year of the move and the following three years unless they have previously expressly demonstrated that they no longer have substantive ties to Finland. The resident taxpayer status of a foreign citizen ends immediately on moving away from Finland.
As a general rule a person can only be a resident taxpayer in one country at a time. If a person lives or works in more than one country at the same time, they are probably a resident taxpayer only in their country of permanent residence or in the country to which they have the closest ties. The Nordic tax treaty also prohibits so-called double taxation. Therefore any income you earn in other Nordic countries will not be taxed twice, but you must declare it in your tax return in the country where you are a resident taxpayer.
You can find more information on the Nordic tax treaty on the Nordic tax portal.
A person who is not a resident taxpayer is a non-resident taxpayer. Non-resident taxpayers only pay tax to Finland on the income they receive from Finland.
Non-resident taxpayers include persons who reside in Finland for less than six months and Finnish citizens who have moved abroad, if the year of their move was over three years ago or if prior to that they have demonstrated that they no longer have substantive ties to Finland.
Non-resident taxpayers pay tax at source to Finland on their income. Non-resident taxpayers may, however, apply for progressive taxation instead of tax at source. You can find more information on taxation of earned income in the section Taxes in Finland.
Special taxation cases
Employer from a country other than Finland
If a person working in Finland has a foreign employer, it is possible that the employer is not required to pay withholding tax to Finland on their pay. In this case you should contact the tax office, who will determine tax prepayments.
Workers posted to Nordic countries
If your employer in your country of residence sends you to work in another Nordic country, the employer must notify the employment to the tax authority in the country of residence. The notification is made either on form NT1 or form NT2, available from the Finnish Tax Administration. This ensures that tax is withheld in the right country.
Form NT1 is used if you should be taxed in your country of residence only. This is generally the case if you stay in another country for no longer than 183 days in the course of 12 consecutive months. Form NT 2, on the other hand, is used if you should be taxed in your country of employment. This is the case if you stay in your country of employment for over 183 days or if your employer has a permanent establishment in your country of employment or if (in some countries) you are an agency worker.
In some situations the tax authorities may transfer withheld tax to another Nordic country on the basis of the so-called Nordic TREKK Treaty. This is possible if your pay should be taxed in a country other than the one where tax has been withheld. The amount transferred is always considered to have been paid at the right time in the country to which it has been transferred and where taxation arises. If the amount transferred is less than the tax payable in the country of taxation, you will have to pay the missing amount yourself with interest and any other penalties for late payment.
If a person lives in one country and works in another, in certain situations they may be a so-called cross-border worker. The rules for cross-border workers are explained in the article Taxation of cross-border workers in Finland.
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NB! If you have questions regarding the processing of a specific case or application, or other personal matters, please contact the relevant authority directly.