Finnish-sourced pension income paid to individuals living overseas

In general, if you receive income in the form of pensions sourced to Finland, the income is subject to taxes in Finland. The reason for this is that according to the provisions of the majority of Finland’s bilateral tax treaties with other countries, Finland is not prevented from collecting tax on pensions paid by Finnish payors.

When you leave Finland to start living in a foreign country – or when you already are living in a foreign country – your pension from Finland is subject to tax in the same way as for people who live in Finland. The amount of income will affect your progressive tax rate, and the standard pension-income deduction (eläketulovähennys; pensionsinkomstavdrag) is granted to you automatically.

You live in a foreign country and you begin receiving a pension from Finland

You need a specific tax card, designed for receipts of pensions, which the Finnish Tax Administration will issue you. 

Read the guidance concerning “pensions” tax cards and the detailed information you need to give for getting the card.

Note: If you are treated as a nonresident for Finnish tax purposes, the Finnish pension company will act on your behalf and obtain the tax card for you. After that, the company is able to pay you the pension.

You leave Finland for a foreign country and you are already receiving a pension from Finland

If you have been a recipient of a pension before you leave, you must already have the appropriate tax card designed for pensions. After you submit a request for a card for pensions for the first time, the Tax Administration will automatically send information on your valid withholding rate to the payor of your pension every year. In that case, you do not need to submit a request for the card yourself although you are moving away.

The Tax Administration will send you a tax-prepayment decision by post for the upcoming calendar year. You will receive it some time in December or January. Re-check all the information you entered.

Request a new tax card in MyTax, if necessary

If you live in Spain or Portugal, please familiarize yourself with the instructions concerning these two countries.

Living in Spain

Living in Portugal

Check your pre-completed tax return

Check the amounts of your income sourced to Finland, and check your tax-deductions as well. After your pension company has submitted its reports to the Incomes Register detailing the pensions the company pays out, the amounts and other information become available to the Tax Administration. Then, the amounts are pre-filled on individual taxpayers’ pre-completed return forms. 

Log in to MyTax to submit information or to make corrections

Instructions: The pre-completed tax return – making corrections in MyTax or on paper

Read more about the tax return and its deadline dates

In general, not only Finland but the country of your tax residence, too, collects taxes on the pensions you receive. Remember to report the Finnish-source income – consisting of a pension or of other types of income – to your country’s tax authorities.

You pay a healthcare contribution to Finland 

The healthcare contribution is less than 2% of your pension. The contribution’s amount is included in the calculation related to the tax withholding rate on your card.

After you leave Finland to start living in a foreign country as a pension recipient, you pay the contribution if:

• You continue to be covered by the social and health insurance of Finland, or
• You live in a country of the EU or EEA, in the United Kingdom or in Switzerland, and under the Council Regulation (EC) on the coordination of social security systems, Finland reimburses the country where you live for any medical expenses related to your care.

However, if you are not covered and if Finland is not responsible for reimbursement of medical expenses, please contact Kela, the Social Insurance Institution of Finland, and ask for a certificate proving that you are not covered by the Finnish social security system.

Provide the Tax Administration with a written account

• in MyTax. Go to the Tax matters tab, then go to Applications and click Tax-at-source card or tax card abroad.
• on a paper form: “Application for a tax-at-source card/tax card – Individuals who leave Finland or are living in a foreign country” – Lähdeverokortti- tai verokorttihakemus (6207a), (available in Finnish and Swedish)