Foreign pension benefits

If you are a Finnish resident and receive pension benefits from other countries, the international tax treaty between Finland and the source country of your pension will determine the tax treatment.  However, you will be expected to include your foreign-sourced pension in your Finnish income tax return.  Your reporting obligation is in force even in cases where Finland is not levying tax on the pension.

When you receive your pension, an amount of withheld tax may already have been paid to the foreign country.  The provisions of the international tax treaty may specify that Finnish tax authorities will not levy any tax.  However, your overall taxes may be heavier because of the progressive income-tax scale, which has been affected by your receipts of pension benefits from other countries. This is the case with the very common Swedish-sourced pension accrued in the past.

The source country is not always the country of taxation.  If the country of taxation is the country where you as the individual taxpayer are living, Finland will levy tax on your receipts of pension benefits from other countries.

The Finnish health insurance premium is usually payable on any receipts of pension benefits from other countries.  For 2018, the rate of this premium is 1.53 % on the gross amount.

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