Inheritance

If decedent or beneficiary lived in Finland at the date of death, Finnish inheritance tax will be payable on any receipt of assets as an inheritance, regardless of whether the beneficiary is a natural heir or a beneficiary of a last will and testament.

Deliver a photocopy of the estate inventory deed to the Tax Administration

The Finnish Population Information System will automatically transmit information on deaths to the tax authorities. There is therefore no need to notify the Tax Administration regarding the occurrence of the death itself. Instead, the parties to the estate should arrange a meeting - called the inventory conference (perunkirjoitus; bouppteckning) within three months of the death to perform an inventory. A photocopy of the estate inventory deed (perukirja; bouppteckningsinstrument) resulting from this meeting should be delivered to the Tax Administration within one month. The processing time for an estate inventory deed is usually 6 months; in some specific cases it may be longer.

Send the Estate Inventory Deed with enclosures, in photocopy, by post to:

Finnish Tax Administration - Verohallinto
Inheritance and Gift Tax (Perintö- ja lahjaverotus)
PO Box 760
FI-00052 VERO

Alternatively, drop them off at the local tax office.

For more information, click here.

Estates of less than €20,000 are not taxed

The taxpayers are the natural heirs and any other beneficiaries based on a last will and testament. Tax computations regarding inheritance tax are officially performed separately for each party to the estate. Tax amounts are directly proportional to the value of the assets received.

However, the next of kin who are natural heirs have tax allowances, determined by a classification of family relationships. It should also be noted that if the tax authorities have determined the asset value to be less than €20,000, it means that it stays below the threshold for inheritance tax. The ordinary household or personal items of the decedent are not subject to inheritance tax if their aggregate value stays below €4,000.

Tax depends on estate value and types of family relationship as shown in the following:

First category, from 1 January 2017

 Estate value, € Inheritance tax, € at left-hand value Inheritance tax % for amounts in excess
 20 000 - 40 000         100     7
 40 000 - 60 000      1 500   10
 60 000 - 200 000      3 500   13
 200 000 - 1 000 000    21 700   16
 1 000 000 -  149 700    19
  • The decedent’s spouse;
  • any heir of the decedent, either in lineal ascent or lineal descent (child, grandchild, parent, grandparent, etc.), or
  • any heir of the spouse, in lineal descent;
  • The betrothed of the decedent, who is awarded an allowance cited in Chapter 8, Section 2 of Inheritance Code.

The rule also includes any cohabitant who has lived together with the decedent, having previously been married to him or her, or who has, or has had, a child with the decedent. Adoptive children and adoptive parents pay inheritance tax in the same way as biological children and parents.

Second category, from 1 January 2017

 Estate value, €  Inheritance tax, € at left-hand value Inheritance tax % for amounts in excess
 20 000 – 40 000      100 19
 40 000 – 60 000    3 900 25
 60 000 – 200 000    8 900 29
 200 000 - 1 000 000 49 500 31
 1 000 000 - 297 500 33

• Other relatives and non-relatives.

First category

Estate value, € Inheritance tax, € at left-hand value Inheritance tax % for amounts in excess
 20 000 - 40 000 100  8 % 
  40 000 - 60 000 1 700  11 % 
 60 000 - 200 000 3 900  14 % 
 200 000–1 000 000 23 500  17 % 
 1 000 000– 159 500  20 % 

Second category

Estate value, € Inheritance tax, € at left-hand value Inheritance tax % for amounts in excess
 20 000–40 000 100  21 % 
 40 000–60 000 4 300  27 % 
 60 000–1 000 000 9 700  33 % 
 1 000 000– 319 900  36 % 

First category

Estate value, € Inheritance tax, € at left-hand value Inheritance tax % for amounts in excess
 20 000–40 000 100  7 % 
 40 000–60 000   1 500  10 % 
 60 000–1 000 000 3 500  13 % 
 200 000–1 000 000  21 700  16 % 
 1 000 000– 149 700  19 % 

Second category

Estate value, € Inheritance tax, € at left-hand value Inheritance tax % for amounts in excess
 20 000–40 000 100  20 % 
 40 000–60 000 4 100  26 % 
 60 000–1 000 000    9 300  32 % 
 1 000 000– 310 100  35 % 
Example: Three grown-up children survive the decedent, who never drew up a will. All children will inherit equal portions (⅓) of the estate.  Total estate value equals €150,000, as enumerated in the deed of estate inventory.  However, after subtraction of debt balances and reasonable expenses for the execution of the estate (and funeral), the remaining value of assets to be distributed stands at €90,000.  Each child receives a third – €30,000.  Each child must personally and separately pay €800 as inheritance tax (year 2017).

For more information, click here.

The Tax Administration sends you the tax decision

The processing time for an estate inventory deed is usually 6 months. Once the inheritance tax has been determined, the inheritors will receive decisions on the tax amount. The official decision is a statement that displays whether the tax authority has approved the inventory of the estate, and includes the results of asset valuation and the amounts that have been subtracted. If no inheritance tax is payable, the tax-assessment decision can be delivered solely to the person marked on the inventory deed as in charge of management of the estate.

We recommend that you keep the official decision safe, together with the inventory deed.  The official decision shows the amounts resulting from the valuation of inherited assets, as endorsed by the tax office. These values will be used as the basis for your further taxes on capital gains (or deductions for capital losses) if you sell some assets later and make a profit (or loss).

More information on the terms of payment (in Finnish and Swedish).

Decisions are appealable

If you are not satisfied with the decision on inheritance tax, you are entitled to lodge an appeal with the Tax Administration. You will nevertheless be expected to pay the tax amounts on the due dates as displayed in the original official decision.

More information on making appeals (in Finnish and Swedish).

Page last updated 5/10/2017

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