Finland has revised its Special Expatriate Tax Regime to attract highly skilled professionals and returning Finnish citizens. Key updates include:
- Reduced Tax Rate: The tax rate under the regime has been lowered from 32% to 25%.
- Eligibility Extended: Finnish citizens returning from abroad are now eligible to benefit from the regime.
Eligibility Requirements
To qualify for the Special Expatriate Tax Regime:
- The employee must become a tax resident in Finland at the start of employment.
- The employee’s cash salary must be at least EUR 5,800 per month.
- Exception: Employees coming to Finland to teach or conduct research at a higher education institution are not subject to a minimum salary requirement.
- The employee’s work in Finland must require special expertise.
- The employee must not have been a tax resident in Finland during the five calendar years preceding the start of employment.
- Note: This requirement also applies to Finnish citizens.
Duration of the Regime
- Maximum period for non-Finnish citizens: 84 months from the start of employment.
- Maximum period for Finnish citizens: 60 months from the start of employment.
Application Deadline
The application must be submitted before the commencement of employment or within 90 days from the start of employment.
