Tax on investments in Finland
Investment or investing means the process of purchasing assets (e.g., securities), with the expectation to generate profit in the future. The main idea is that invested funds grow along with an increase in the value of an asset over time. Thus, investments generate money in the form of, for example, sales profits, dividend income and returns on fund shares.
Investors have to pay tax on income received from investments, i.e., capital income tax, or tax on earned income in certain cases. Some of the dividend income is tax-exempt. Expenses and losses caused due to investments can be deducted from taxes.
| Tax rate on capital income | Tax rate on earned income |
|
Up to €30,000
30 %
|
Progressive *** |
|
Over €30,000
34 %
|
*** As for the earned income, there is a progressive taxation in Finland, which means that the more you earn, the more tax you have to pay.
Investment information reporting to the tax authorities
You can report the information on your investments using Finnish Tax Administration's e-service MyTax or with a paper form.
To the Finnish Tax Administration have to be reported information on all profits and losses from investments, both in Finland and abroad, thus:
- On capital gains or losses from sold corporate stocks (in Finnish, osake) and fund shares (in Finnish, rahasto-osuus)
- Dividend income (in Finnish, osinkotulo)
- Profits from investment fund shares (in Finnish, sijoitusrahasto-osuus)
- Profits in equity savings account (osakesäästötili), in case of money withdrawn from it
Note: some information may be already shown in the pre-completed tax return.
Tax exemption on the sale of shares
Sales profits are tax-exempt if the total price of shares have been sold during a calendar year was EUR 1,000 at maximum. In spite of this tax-exemption, information on sales of shares under EUR 1,000 have to be included in the tax return. The sales price in amount of EUR 1,000 includes not only the sale of shares but all sales during the year.
Keeping the documents to confirm investment operations
Information needed to calculate the sales profits and losses from securities must be kept for six (6) years after the end of the assessment year.
Detailed information on the taxation of investments can be found at the Finnish Tax Administration website.