Pension from abroad
If you live in Finland and receive a pension from abroad, the taxation of your pension is usually determined by a tax treaty signed between Finland and the country paying the pension.
Often you must pay tax abroad on a pension you receive from a foreign country. If you live in Finland, you must also pay tax on pension in Finland. However, double taxation is eliminated in Finland by crediting the taxes paid abroad.
However, pensions are not always taxed in the country of source. If this is the case, the pension will be taxed normally in Finland.
You start receiving a pension from abroad or you move to Finland and receive a pension from abroad
Prepayments are imposed on pension received from abroad. If you also receive a pension from Finland, you can request a tax card from the Finnish Tax Administration that will take your foreign pension into account in the tax rate. When a higher tax rate is applied to your Finnish pension during the year, you avoid paying back taxes and interest.
Request a tax card for pensions in MyTax. Report the pension your have received from abroad under Foreign income.
If you are filing on paper, fill in the following forms:
- Request a tax card on paper with Form 5010 and
- Form 16A Statement on foreign income (earned income).
Report your foreign pension on the Finnish tax return
You must always report the pension you receive from abroad on your Finnish tax return. Note that you must report the pension even if it is not taxable in Finland.
If you do not use MyTax, fill out Form 16A, Statement on foreign income (earned income).
Pension was paid in a currency other than euros
Report the exact income in euros and cents. If the income was paid in a currency other than euros, convert the amount into euros. Use either
- the average exchange rate published by the European Central Bank or
- the exchange rate in accordance with the payment date of the pension.
Report currency conversion charges
The Tax Administration deducts €60 a year from the pension to cover currency conversion charges. If the charges are over €60, you must report them.
Health care contribution
Finnish residents taxed in Finland must pay a health care contribution, which is less than 2% of the income. If you receive pension income from Finland and from abroad, the contribution is calculated based on the total amount. Note that the contribution cannot be greater than the pension you receive from Finland.
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