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.
Request changes to your tax card
The tax treaty between Finland and your country of residence may affect the taxation of your pension.
Request a tax card in MyTax
If you are a non-resident taxpayer in Finland, your pension provider can ask the Tax Administration for a tax card on your behalf.
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
The pre-completed tax return – making corrections in MyTax or on paper
Your home country usually has the right to tax the income you receive from other countries. Remember to report the income that you receive from Finland to your home country’s tax authorities.
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.
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.