Finance News in Finland
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In 2026, Finland is expected to lower its reduced VAT rate from 14% to 13.5%, providing modest relief for food, restaurant services, medicines, and public transport. Additionally, the government plans to reduce the top marginal income tax rate to approximately 52% and increase tax-free thresholds for inheritances and gifts. However, some benefits will be cut, such as the standard home office deduction and the tax deductibility of trade union membership fees for wage earners. 02.01.2026
If you use your own car during a temporary business trip, your employer may pay you tax-exempt kilometre allowances. Only employees with a signed employment contract can receive tax-free kilometre and per diem allowances for work-related travel. These reimbursements require a formal employee-employer relationship. 26.12.2025
A large number of people who worked part-time have ended up unemployed. According to a survey by the YTK Unemployment Fund, the cause is at least partly a law change last year that removed the earnings disregard from adjusted unemployment benefits. 11.08.2025
Ministry of Finance (Valtiovarainministeriö) published a new proposal to amend regulations concerning mortgage lending and housing company loans. The goal is to stimulate the real estate market, simplify changing homes, and improve the accessibility of housing finance. 11.07.2025
Statistics Finland reports 268 bankruptcies in December 2024, up by 24 from the preceding year. In total, 3,484 businesses went bankrupt in 2024. The construction and retail sectors saw the most bankruptcies, with 47 and 44 companies, respectively. However, the construction sector showed signs of recovery, as its bankruptcy filings decreased the most. 20.01.2025
According to the government proposal supplementing the 2025 budget proposal, the State budget revenue for 2025 is estimated at EUR 76,6 billion, with tax revenue accounting for EUR 67,3 billion (88 %). Tax revenues are estimated to grow by approximately 0,7 % (0,5 billion euros) compared to the main budget for 2024. 28.12.2024
The Tax Administration has started the formation of 2025 tax cards, which will be available in MyTax (OmaVero) by December 13th, take effect on January 1, and feature a 12-month income limit to simplify its tracking. 01.12.2024
The overall situation in Finland reflects a period of economic uncertainty and cautious consumer sentiment. While consumer confidence slightly declined in September 2024 compared to the previous month, it showed some recovery from the previous year. Most consumers were worried about the economy, with many cautious about spending or taking on new loans. 06.10.2024
The ASP account or ASP-loan, short for AsuntoSäästöPalkkiotili (ASP-tili) which is the abbreviation for the Finnish bonus system for the first-time home savers, is intended to help individuals aged 15 to 44 in acquiring their first home by streamlining the buying procedure. 15.07.2024
The Finnish general value-added tax (VAT) is expected to be raised to 25.5 percent from the current 24 percent. The increase may potentially generate an extra billion euros into the state treasury per year. 17.04.2024
Taxes form the backbone of government income. A government proposal projects State budget revenue for 2024 to reach 76.3 billion euros, of which tax revenue predicted at 66.8 billion euros, up 3.6% from the previous year. 12.04.2024
The Finnish Government is currently preparing several legislative reforms that can affect Finnish unemployment security system. The proposed changes include among other things extension of the waiting period during which earnings-related unemployment allowance is not paid and the increase of the length of employment history required to qualify for an unemployment allowance, decrease of the level of unemployment security and abolishment of the child supplements. 21.11.2023
According to the recent Pension Barometer data conducted by the Finnish Centre for Pensions, citizens' trust in the pension system remains at a high level. However, the confidence has decreased slightly in comparison with previous years' surveys. Two-thirds of respondents trust the pension system and almost as many think that pension assets are managed responsibly. 31.07.2023
The Finnish economy went into recession at the end of 2022. The Ministry of Finance expects that the recession is projected to be moderate and short-lived. The economy will return to growth during the year 2023. However, it will not return to its previously projected path of growth, as current war in Ukraine has longer-term impacts on it. 22.05.2023
What is the average and median salary in Finland? According to the latest data from Statistics Finland, the median for total earnings of full-time wage and salary earners was EUR 3 315, whereas the average for total earnings was EUR 3 738 per month in 2021. Uusimaa had the highest median earnings among all regions. 14.03.2023
According to Statistics Finland the year-on-year change in consumer prices was 8,4% in January. In December, inflation stood at 9,1%. The decrease in inflation from December to January was caused by a milder rise in electricity prices. 20.02.2023
There are some differences between electricity contracts, and they can have a large impact on the amount to be paid on electricity bills. However, choosing the best contract has recently been perhaps more difficult than ever. 19.02.2023
Taxes are the most important source of government revenue. According Government proposal supplementing the 2023 budget proposal from 19.9.2022, the State budget revenue for 2023 is estimated at EUR 72,5 billion, of which tax revenue will account for EUR 64,5 billion. Tax revenues are estimated to grow by approximately 33% compared to the budgeted for 2022. 12.01.2023
Illegal and undeclared work in Finland leads to a large tax gap to be formed every year. The gap’s size ranges from 300 to 480 million euros. The amount of undeclared work and the resulting losses in fiscal revenue have been estimated for the first time in Finland. 22.11.2022
Twice a year, the Employment and Economic Development Offices make an estimation of the supply and demand ratios for about 200 key occupations in the near future. According to the Occupational Barometer (estimation is made during September and October 2022), the increase in labour shortages has levelled off. A slight decrease in number of shortage occupations was shown from spring 2022. 08.11.2022
The continuing war in Ukraine, rapid inflation, the European energy crisis have darkened the economic outlook for the global economy, the euro area, and, in particular, for Finland. Economic growth is slowing down and inflation accelerating more than it has been previously anticipated. 23.10.2022
According to Statistics Finland, prices of old dwellings in housing companies fell in general by 0.2% in the six biggest cities and by 0.4 % in Greater Helsinki in August. In the whole country, prices fell by 1.4 % in August from July 2022. 08.10.2022
For the first time in a long time, Europe is threatened by scarcity that affects the basic needs – heating, food and consumer goods – and leads to rising prices. The necessary to save electricity and more energy efficiency arises. Although the Government is not able to compensate for all increases in electricity prices, it will take targeted measures to avoid unfair situations. 13.09.2022
Position of employees working variable hours (zero-hour employment contracts) will be improved. The amendments have been approved on 8 July 2022, and they will enter into force on 1 August 2022. Variable hours contracts refer to contracts where, instead of a fixed number of working hours, the working time is been agreed to vary between certain hours (for example 0-30 hours per week). These types of employment contracts do not provide the worker with a guaranteed number of work hours. 18.07.2022
According to the Bank of Finland Bulletin 1/2022, the financial system of the country remained stable. Nevertheless, the uncertainty in the Finnish economy has steadily increased and, thus, the financial system needs to be well prepared to bear new risks. 13.06.2022
The purchasing power of Finns' wages may decline faster this year than ever before in the 21st century, the Taxpayers Association of Finland predicts in its recent Tax Review. 04.05.2022
A total of EUR 32.8 billion of earnings-related and Kela pensions was paid in 2021. In ten years, the number of pension recipients has increased by 170 000, or 12 %. 10.04.2022
There are great uncertainties about the effects of the war on the economy of Finland, as situation essentially depends on the duration and extent of the conflict. 16.03.2022
The dispersion of managers' salaries was greatest in the private sector, where the lowest salaries were EUR 4 279 and the highest salaries were EUR 11 890 per month. 13.03.2022
In the last quarter of 2021, producer prices for agricultural products rose by 12.3 % from the corresponding quarter of the year 2020. 17.02.2022
Finland has been deemed the happiest country in the world for the fourth year running, nevertheless, in this country there are people who struggle for survival. There were 678 800 low-income earners, or 12.5% of the dwelling population in 2020. 18.01.2022
Last year, the income of more than 750 000 people exceeded the income limit indicated in their tax card. This means that their income was taxed at the end of the year with an additional tax rate that is clearly higher than the basic rate. 04.01.2022
Nowadays, the use of the internet is slowly becoming more widespread in Finland and exclusively in the oldest age groups. The share of those who use the internet daily, or almost daily, grew among those aged 65 to 89. 07.12.2021
Тhe Finnish Tax Administration has published a decision on tax-exempt allowances for travel expenses in 2022. The basic kilometre allowance will equal 46 cents. 28.11.2021
The top 15 list of shortage and surplus occupations. According to the Occupational Barometer, the focus on skilled labor shortages is still in the health and social services sector. 23.11.2021
The State budget revenue for 2022 is estimated at EUR 57.9 billion, of which tax revenue will account for EUR 48.7 billion. Tax revenue is expected to grow by approximately 8,1 % in comparison with the budgeted figure for 2021. 16.11.2021
Managers, specialists and experts (professionals, technicians and associate professionals) had the highest hourly earnings among occupational groups. 21.10.2021
Gender Wage Gap: the median pay of men exceeds the median pay of women by around 10 to 30 %, depending on the level of education. 21.10.2021
The number of employed people was 104 000 higher in August 2021 than one year ago. The unemployment total was 179 000, which is 33 000 less than a year ago. 22.09.2021
If the recovery in tourism begins in November-December 2021, the total tourist spending is estimated to shrink by about 30%, or more than EUR 5 billion. However, if the recovery does not start until spring 2022, total spending will fall by around 40%, or more than EUR 6 billion. 07.09.2021
Among large cities, the prices of old dwellings in housing companies rose the most in Helsinki and Espoo compared with the corresponding period of last year. Since 2015, prices have risen by around 13% in Espoo and by nearly 26% in Helsinki. 02.09.2021
454 000 Finns have forgotten to pay the first installment of Real Estate Tax, which was due on 6 August 2021. In total, this year approximately EUR 85 million of a Real estate tax remained unpaid in August. 13.08.2021
The type of the residence permit for the higher education students would be changed from temporary (B) to continuous (A), which would make it easier for students to obtain a permanent residence permit. Family members would also receive type A permit. 09.07.2021
Minimum wages are ranged from €332 per month (less than €2 an hour) in Bulgaria to €2 202 per month (€ 12.73 an hour) in Luxembourg. Thus, the highest minimum wage in the EU was at about 6,6 times higher than the lowest. 16.06.2021
The exceptionally high percentage increase in passenger numbers is due to Covid-19 restrictions, which led to the temporarily closure of air traffic a year ago. 27.05.2021
According to Statistics Finland, the decrease in the birth rate, which has continued for nine years, halted in 2020. At the same time, the number of deaths increased from the previous year, unfortunately. 25.04.2021
As the coronavirus situation continues, the Tax Administration's customers will again have an opportunity to get extra time for paying taxes on easier terms than usual. The interest rate on the tax debt will be temporarily reduced from 7% to 2.5%. 19.04.2021
There are three deadlines for making corrections and additions to the tax return: 4.5., 11.5. or 18.5.2021. You can check the deadline date on your pre-completed tax return and in MyTax (OmaVero). For the spouses, it’s always the same day. 08.04.2021
Finnish Government will amend the decree and impose or lift the closure restrictions in line with the epidemiological situation in any given region or area. An amended decree will be issued on Thursday 8 April 2021. 02.04.2021
Compensation be paid to companies whose premises must be kept closed due to the coronavirus situation. The new form of compensation would apply to companies with up to 49 employees. 19.03.2021
According to Statistics Finland's, half of students aged at least 18 were working alongside their studies in 2019. Employment of students during studies varied by field of education. 13.03.2021
According to Mikael Pentikäinen, Chief Executive Officer of The Federation of Finnish Entrepreneurs, the tightened restrictions will exacerbate the situation, so business support and changes in the law are now urgently needed. 12.03.2021
EU Member States can still submit requests to receive financial support under SURE programm. Finland has not so far applied for a loan and does not plan to do so. 18.02.2021
According to Statistics Finland, the index of wage and salary earnings, that measures the rise in the nominal earnings of full-time wage and salary earners, rose by 2.0 %. 11.02.2021
The presidency of the Council of Ministers, which is held for a one-year period, rotates between the five Nordic countries: Denmark, Finland, Norway, Sweden and Iceland. 03.02.2021
January is the most popular month to make changes in the tax card (verokortti) and request a new one. However, your existing 2020 tax card will continue to be valid in January 2021 07.01.2021
According to the recent forecast of the Ministry of Finance, еconomic growth will accelerate to 2.5% in 2021 when the coronavirus epidemic recedes. 19.12.2020
Consumer prices were raised most in November 2020 by higher prices for cigarettes, vegetables, single-unit dwellings, wireless telephone services and medical examination and treatment fees. 15.12.2020
The second round of business cost support program will be open for application process in the last days of the year 2020. An expert from the Finnish Entrepreneurs' Association answers the most common questions about this program. 04.12.2020
The Finnish Government proposes to partially continue the action of the legislative amendments relating to the unemployment benefit of laid-off employees and entrepreneurs. 19.11.2020
A non-competition agreement restricts the employee’s right to take up into employment with a competing employer and the right to engage in competing activities after the termination of the employment relationship. 14.11.2020
The current corona situation has increased attention to some occupations that are the most essential for the functioning of society. Such occupations are critical, relevant, often hard-to-fill, and are highly in-demand. 12.11.2020
The City of Helsinki renounces the much-criticized price-regulated housing construction, i.e. Hitas - system. The political parties have reached an agreement. 07.11.2020
According to the Government's Draft Budget and as a result of previous decisions, there are a lot of changes in taxation are coming in year 2021. 23.10.2020
Kela has approved the score of the year 2021 national pension index, according to which the large part of benefits paid by Kela will be increased by 0,4% next year. The index revision will increase Kela's benefit expenses by an estimated EUR 24 million in 2021. 15.10.2020
Dwelling prices in Finland vary based on the region of the country, building type, form of ownership of plot or number of rooms. The most expensive prices at a housing market of Greater Helsinki. 11.10.2020
The Finnish economy has contracted for 3 quarters in a row. Nevertheless, the coronavirus pandemic affected less damage to the Finnish economy than it did to most other European economies in the early part of the year 2020. 09.10.2020
In order to reduce the administrative burden on small business, the lower limit of the VAT liability based on turnover for the financial year would be raised from €10 000 to €15 000. 08.10.2020
The coronavirus pandemic has led to a deep recession in the global economy, but many indicators point out that the economy will start to recover from the third quarter of current year 2020. However, the second wave of the pandemic increases and it leads to rise in uncertainty. 07.10.2020
The members of the Finnish Association of Real Estate Agents give feedback to banks on poor and slow service. Brokers reproaches the banks, that they have cut own costs, branches, staff and are not even able to make loan decisions within a reasonable period of time. 29.09.2020
According to Statistics Finland, in 2019, the median hourly earnings of wage and salary workers was EUR 17.9. Total earnings are the gross one, i.e. it includes all taxes or other payments. 02.09.2020
This year 2020, you should check your tax deductions, especially if you have done a lot of remote work. For example, the commuting expenses (matkakulut) between home and work can be deducted only for the days when you have actually made this trip. 27.08.2020
Finnish people have now the ground to expect for the price competition among retail food stores to intensify. The discourse over the price of food got the new rounds last week when Lidl announced it would lower the price of 300 products permanently. 09.08.2020
According to the preliminary assessment presented by the Employment Fund on 5 May 2020, the total level of unemployment insurance contributions would need to be increased by 0.70 -1.50 percentage points. 07.08.2020
Some of the Finnish people have become unintentionally prosperous during the corona epidemic. By the end of the summer, the household deposit (saving) accounts are predicted to accumulate a record 100 billion euros. 24.07.2020
According to Statistics Finland's data, prices of old dwellings in housing companies rose by 1,4 % in Greater Helsinki compared to May 2019 and decreased by 3,5 % in the rest of Finland. 10.07.2020
The majority of individuals have already received their 2019 tax decision. By the end of June, the Tax Administration has issued a tax decision for approximately 4,8 million individual taxpayers. 07.07.2020
Temporary changes have been made to the unemployment benefits simplifing their eligibility conditions and improving the level of benefits. The new requirements have been applied due to the coronavirus epidemic and extended until the end of 2020. 29.06.2020
The new DAC6 EU directive imposes an obligation to inform the Tax Administration even of the potential cross-border schemes or transactions with characteristics of tax avoidance. 22.06.2020
The exempt amount refers to the amount of money a recipient of unemployment benefits can earn without it reducing his benefits. The changes came into force on 1 June, 2020. 12.06.2020
The application period for business development financing through Business Finland and ELY Center in disruptive circumstances of coronavirus crisis has ended on Monday, June 8. 10.06.2020
Тhe large number of companies in the restaurant sector will receive compensation for restrictions on activities. The business can apply for the employees re-employment support from 5 June 2020. 04.06.2020
At the end of April 2020, there were altogether 433 000 persons registered as unemployed job seekers at the employment and economic development offices. This number was 203 000 higher than in April last year. 28.05.2020
The company can request a VAT refund it has paid in January, February, and March 2020 by making a payment arrangement request to the Finnish Tax Administration. 22.05.2020
Тhe number of open job vacancies was 63 300 in the 1st quarter of 2020. The data describe the situation on the first day of March, so the effects of the exceptional situation caused by the coronavirus pandemic cannot yet be seen. 19.05.2020
There are about 39% of the members of the Finnish Entrepreneurs' Unemployment Insurance fund (SYT) apply for temporary labor market subsidy from Kela. The SYT fund includes about 30 000 entrepreneurs from all business industries. 13.05.2020
According to the temporary amendment of the law, which came into force from the 1 May 2020, there is no need to answer for the questions regarding your need for employment services or update the employment plan at the beginning of the job search. 06.05.2020
Bankruptcy of companies will be restrained and the situation with enforcement procedure (debt collection) will be mitigated by temporary changes in the law. Additional time will also be given for the submission of the financial statements. 01.05.2020
According to Statistics Finland, the consumer confidence indicator (CCI) fell to -13,9 in April 2020. This figure is the most dismal in the measuring history of 1995–2020 of consumer confidence. 27.04.2020
In March 2020, the number of employed persons was 2 516 000, which was 21 000 less than a year earlier. There were 23 000 fewer working men and 2 000 more employed women than in March 2019. 24.04.2020
A lot of people have been laid off from work on a temporary or permanent basis in recent time. The tax administration points out that a person receiving unemployment insurance should apply for a new tax card for social-benefit income. 20.04.2020
Entrepreneurs can apply for labor market subsidy for the period 16 March to 30 June 2020 using Kela's e-service. Applications for the temporary labor market subsidy to self-employed persons are made with a specific online application form. 17.04.2020
The most popular reference rate for the Finnish mortgages, i.e. the twelve-month Euribor, has clearly hurt lately, although it is still in minus values. 11.04.2020
Corporate restructuring is a last resort to avoid bankruptcy. Corporate restructuring can be achieved if the company is considered to be viable. 06.04.2020
A full-time entrepreneur who is self-employed in Finland and regardless of the legal form of the activity and the method of financing can apply for support. 01.04.2020
The marketing of quickie loan companies seems to have become more active in recent weeks. Entrepreneurs have also resorted to high-interest loans as the cash crisis threatened. 25.03.2020
The aid package for companies in total of EUR 15 billion, includes, inter alia, accelerating the process of staff sent on compulsory leave without pay and temporarily lowering private pension contributions. 21.03.2020
The government has prepared a considerable support package to help businesses deal with the ravages of the coronavirus epidemic. The government will provide additional funding of EUR 12 billion to companies through Finnvera. 20.03.2020
The Bank of Finland emphasizes the importance of companies' financing needs protection, otherwise profitable companies will quickly become insolvent. The coronavirus pandemic and the related restrictive measures will put severe pressure on the companies' cash flow. 18.03.2020
The relief is needed because the spread of coronavirus has hit not only health but also the economy of many individuals and companies. Many companies are in risk of crash because of reduced demand or cancellations of orders. 16.03.2020
The cost per an hour worked rised by 1,8 % in manufacturing industries and by 1,4 % in business service activities in October to December 2019 compared to the corresponding period of year 2018. 10.03.2020
The Financial Group OP is lowering its forecast for Finland's economic growth this year. According to a new forecast, Finland's economic growth will remain exactly zero in the current year 04.03.2020
There was registered an increase in the number of unemployed job seekers in January 2020. The unemployment rate was 7,2%, or 0,4 % higher than the previous year. 25.02.2020
According to preliminary data from Statistics Finland, the population of Finland at the end of January 2020 amounted to 5 528 442 people. The population of Finland in January increased by 869 people. 25.02.2020
The AAA rating is a sign of the company's excellent financial performance, positive background information and good payment behavior. Rating Alfa predicts if the company has the risk to become insolvent or turn to bankrupt. 23.02.2020
The Market Court has found that Kesko’s acquisition of Heinon Tukku would have harmed competition in the Finnish grocery wholesale market. This is the first time when business acquisition has been blocked in Finland. 19.02.2020
The growth in wages and salaries was fastest in the industry of private health and social work and composed 7.0 % in the 4 quarter of 2019 than in the corresponding period of 2018 year. The decrease in wages and salaries was registered in construction sphere (- 0.1%). 14.02.2020
All students the annual income limit of whose has exceeded in 2018 will receive the letter with repayment proposal. The average amount that every student should return is 860 EUR. 14.02.2020
The average rent level of non-subsidized rental dwellings is still highest in Helsinki, EUR 21.0 per m² and in new tenancies signed in the last six months, the average price of a rented square meter was EUR 22.7 per m² in Helsinki. 07.02.2020
The number of opened enterprises was highest in Helsinki and composed 1 955 companies in the third quarter of 2019 and along with this the most enterprise closures were registered also in Helsinki municipality – 1 039 in the second quarter of 2019. 30.01.2020
The integration involves multiple aspects of social life, among them employment opportunities of immigrants, as well as an active participation of the receiving society and the immigrants themselves in this process. 24.01.2020
The tax administration (Verohallinto) will send a new tax card for the year 2020 approximately to 4.8 million Finnish people. All tax cards for 2020 are available now at MyTax. 18.01.2020
According to updated provisions of Employment Contracts Act employers will have to notify the TE-Offices in a situation when 10 and more of the employees will be dismissed for financial or production-related reasons. 17.01.2020
The increase in the consumer prices in December 2019 compared with the same period of last year (December 2018), occurred mostly because of raises in the prices for electricity, cigarettes, rents and petrol. 16.01.2020
The largest number of businesses formed in 2019 is limited liability companies. The removal of the mandatory share capital requirement in 2500 euros for a limited liability company has increased its popularity. 13.01.2020
Unemployment activation model has canceled from the beginning of 2020 year. There is no longer any control from Kela side concerning the activity of unemployment benefit recipients, as well as there are no any reductions in benefits. 12.01.2020
The law defines what kind of information the contract must contain, including fixed working hours and weekly rest. Even for those who works under flexible contract, the working time must be reduced to an average of 40 weekly hours. 12.01.2020