🇫🇮 Moving to Finland: tax, residency and cost of living

Key facts

Top income tax

56.95%

Corporate tax

20%

Capital gains

30%

Wealth tax

No

Inheritance tax

Yes

Cost of living index

100

Safety

7/10

Internet quality

7/10

Visa-free destinations

193

Foreigners can own property

Yes

Residency in

0 months

Citizenship in

0 years

Taxes

Finland combines progressive state tax with municipal tax (averaging 20%) and church tax (1-2.2%). The combined top rate is approximately 56.95%, the highest in the OECD. Capital gains are taxed at 30% (34% above EUR 30,000). No wealth tax since 2006. Employer social contributions are around 24%.

Residency and visas

EU/EEA citizens may settle freely. Non-EU nationals require a residence permit via Migri (Finnish Immigration Service). The expert tax regime (Lähdevero) offers 32% flat withholding for 4 years for inbound specialists earning above EUR 5,800/month. Permanent residence after 4 years. Naturalisation after 5 years with language test.

Property ownership

Non-EU nationals have since 2020 required permission from the Ministry of Defence to purchase real estate in strategically sensitive areas. EU/EEA citizens and residents face no restrictions. Transfer tax (varainsiirtovero) is 1.5% for residential and 4% for commercial property.

Cost of living and quality of life

Finland has topped the World Happiness Report for 8 consecutive years. Very high safety (8.8/10), excellent healthcare and education and strong support for young families. Cost of living above the EU average (index 76). English is spoken by 70% of the population.

Passport and mobility

The Finnish passport provides visa-free access to 193 countries (Henley 2025), ranking in the global top 5. EU and Schengen member with full freedom of movement.

Why people move to Finland

• Highest tax burden in the OECD

  The 56.95% top marginal rate (state 31.25% + municipal average 20% + YLE + church) makes Finland the most heavily taxed OECD country for high earners on employment income.

• Strong Finnish passport and EU access

  The Finnish passport provides visa-free access to 193 countries (Henley 2025) and consistently ranks in the global top 5, with full EU and Schengen membership.

• High-quality welfare system

  Universal healthcare, free education from kindergarten to university and globally recognised support for young families are funded by the high tax burden. The World Happiness Report has crowned Finland for 8 consecutive years.

Sources

• https://www.vero.fi/en/individuals/tax-cards-and-tax-returns/income/tax-rates-on-pay/
• https://www.vero.fi/en/businesses-and-corporations/taxes-and-charges/corporate-taxation/
• https://www.vero.fi/en/businesses-and-corporations/employer-obligations/special-rules-for-key-employees/
• https://www.henleypassportindex.com/
• https://www.vero.fi/en/individuals/tax-cards-and-tax-returns/income/tax-treaties/
• https://www.defmin.fi/en/topics/real-estate-acquisitions/