If Finnish-sourced pension benefits are being paid to you, the country of taxation will normally be Finland even if you move elsewhere.
According to Finnish tax legislation, taxes on Finnish-sourced pension income will be payable in Finland even if the beneficiary lives in another country. The income tax rate applied in this case will be the same as for a pension recipient living in Finland. The principles of granting deductions will also remain the same, including the standard pension-income deduction.
Report your foreign-sourced income along with any Finnish-sourced income with a tax return
You will receive a pre-completed tax return in March-April. If there is nothing to add or correct, you do not have to return Always check all the details in your tax return.
Tax Return on the Web (tax.fi/taxreturn)
Go to online service
The e-Service has opened 8.3.2018 for the taxpayers whose personal deadline date for filing a tax return is 3.4.2018 (self-employed traders and self-employed professionals). For other taxpayers, the opening date is at the end of March.
Effects of tax treaties
The majority of Finland’s bilateral tax treaties with other countries contain no clauses preventing Finland from collecting tax on pension income. The treaties generally state that pensions arising in Finland and paid to a resident of the tax-treaty partner country will be taxed in Finland. Tax treatment of pension income in these cases is unaffected by the beneficiary moving abroad.
- Nevertheless, in the case of some countries, including Spain, the tax treaty with Finland includes clauses that may prevent Finland from levying tax on pension income, including Finnish national old-age pension and employment pension earned in the private sector. For more information, see separate article below.
- Click here for a list of tax-treaty clauses governing the tax treayment of pensions and annuities (only in Finnish).
Finnish health care contribution may continue
- For the three calendar years following the year of your move you will need to continue paying the Finnish health insurance contribution, amounting to approximately 1.5% of your gross pension amount. If, however, you obtain a certificate from Kela confirming that you are no longer covered by the Finnish social security system, your obligation to pay this contribution will be waived. The reimbursement system of health costs and medical costs is governed by the relevant EU legislation on social security.
- Once three full calendar years have passed, the obligation will cease if you are living outside the European Economic Area, including Switzerland. However, in a situation where Finland would have to pay reimbursement to your new country of residence, within EEA/Switzerland, for medical costs that have built up, you may be required to continue paying the Finnish health insurance contribution.
Checklist for pension recipients leaving Finland
File a notification of move to the Local Register Office.
If you do a permanent change of address the Tax Administration receives information from the Local Register Office automatically. If you do a temporary change of address, report it to the Tax Administration also.
Print a form for reporting a temporary change of address (3817). Instead of using the form, you can also submit the notification with a free-format letter. The letter must indicate your name, address, personal identity number, new address, and the date on which the change takes effect.
A temporary address must be reported to the Tax Administration in person or in writing. The address cannot be reported to the Tax Administration by phone or online. See the contact details of local tax offices .
You can also authorise a representative to do the change of address on your behalf.
When a Finnish citizen leaves Finland for another country, they continue to be a tax resident of Finland during the calendar year when they leave and for three years after the end of that year.
Contact the local tax authority to find out what your tax obligations are.