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Finnish-sourced pension income paid to individuals living overseas

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 or April. Check the information on the pre-completed tax return.

If all the information is correct, you do not need to do anything. You have received your final assessment decision as an enclosure to the tax return form.

If the pre-completed tax return does not have your income information or if some information is missing, make the necessary corrections in MyTax or on paper forms.

Submit details in MyTax

How to file information for your tax return on paper 

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.

Note: If you live in Spain and receive pension from Finland, read more: Pension income received in Spain (as of 2019)

If you live Portugal and receive pension from Finland, read more: Pension income received in Portugal (as of 2019).

Read more about the provisions of various tax treaties on pension income (in Finnish and Swedish) Eläketulojen verotus kansainvälisissä tilanteissa – "Tax treatment of pensions in cross-border situations".

 

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 under 2 % 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 persons moving abroad

File a notification of move to the Finnish Digital Agency.

  • If you file a notification of permanent move, information about your move is forwarded to the Tax Administration automatically.
  • If you file a notification of temporary move to the Digital and Population Data Services Agency, you should inform the Tax Administration separately. Print a form for reporting a temporary change of address (3817). I·   ).  If you do not want to use the form, you can send us a letter with the following details: your name, personal ID, new address and the date of move. 
  • If your address abroad changes during your stay, you must inform both the Digital and Population Data Services Agency and the Tax Administration. See the contact details of local tax offices.

A Finnish citizen continues to be a tax resident of Finland for the year when they move abroad and for the following three years.

Check with the Social Insurance Institution (Kela) whether you continue to be covered by the Finnish social security or whether Finland will reimburse your medical costs to your new country of residence.