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Were you given money or other assets and property as a gift? Are you a tax resident of Finland, or is the donor a tax resident of Finland? You must submit a tax return and pay gift tax to Finland. Even if both of you live in a foreign country, gift tax must still be paid in the case of immovable property situated in Finland – for example, a summer house, a flat or apartment.
‘Immovable property’ refers to:
However, there is a lower threshold for gift taxes: if one donor gives you gifts in the course of 3 years and total value stays below €7,500, the gifts are exempted from tax and there is no need to submit gift tax returns.
Please note that a sales contract where the price is below current market price may be seen as a gift.If you buy property for an underprice, in other words, you only pay an amount below 75% of the property’s fair market value, it is considered a gift-like sale. The amount subject to gift tax is the difference between what you paid and the fair market value.
You, the gift recipient, must file a gift tax return and pay Finnish gift tax in situations like the following:
Subject to certain preconditions, if you live in Finland and you have paid gift tax to a foreign country, your Finnish gift-tax assessment may take account of – give credit for – the amount you paid. Fill in the necessary details on your foreign-paid tax when you complete the appropriate spaces on the Finnish gift tax return.
After you have received a gift, you must valuate it in order to complete the gift tax return form. Use the fair market value, i.e. the probable selling price. This means the amount the seller would have received for it on the date when the gift was given to you. This value is the base for the gift tax assessment to be carried out by the Finnish Tax Administration.
There is no requirement to file a gift tax return for:
Gift recipients must submit a return within 3 months from the date of gift.
Gift tax returns must be submitted to the Finnish Tax Administration even if the provisions of a tax treaty prevent Finland from imposing gift taxes.
You need the following information for completing the return form:
The above information also has an impact on how much gift tax you must pay.
To submit the return you have the following options:
If you cannot log in to MyTax, complete your gift tax return on paper.
After you submit the return, you receive the Tax Administration’s decision on your gift tax in approximately 6 months. The decision letter is enclosed with instructions for payment.
The first due date will be approximately 3 months from the date when you receive the gift tax decision. If your gift tax is less than €500, you must pay it on one single due date. Amounts above €500 are divided in 2 separate instalments. In this case, the second due date is 2 months later than the first due date.
Run the calculator to estimate how much gift tax you must pay
Please note that if you receive immovable property in Finland – a summer cottage, etc. – you become liable for other taxes that are related to your ownership of the property. For example, owners of real estate must pay real estate tax every year.
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