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Working from home for a foreign employer

This guidance is for Finnish-resident individuals who have a foreign employer but who work at least partly from their home in Finland on a remote connection.

You live in Finland but you have travelled to another country to work for a foreign employer

In general, if you stay in a foreign country and work for an employer there, you must pay tax on your wages to the foreign country where you work and stay. However, you are expected to submit an income tax return to your country of residence (Finland) to give details on the wages received. After that, when your Finnish taxes are assessed, any tax you have paid to the foreign country will be taken into consideration. 

You work from home when in Finland

If you have returned to Finland and begun working here over a remote connection (teleworking), Finland becomes your “country of work”. From this follows that you will have to pay tax to Finland.

Because you do not work for a Finnish employer, there is no withholding of Finnish tax from your wages although you are present in Finland. This means that you must pay Finnish tax in the form of regular prepayments.

Do this:

Request prepayments. Read more about prepayments

Contact the tax authorities of your employer’s country. You must agree with them that you no longer need to pay any withholding tax to that country because you have begun working in Finland. If withholding has been carried out in the other country on the part of your wages received for working in Finland, contact the authorities and ask for refund.

See instructions regarding work for an employer in another Nordic country

If you have received wages for your work in a foreign country and the six-month rule has made those wages exempt from Finnish taxes, please note that the six-month rule does not extend to the wages you receive for the work you do in Finland.

Read more 

You do part of your work using a remote connection in Finland

If you live in Finland permanently and in addition to travelling to your employer’s country to work, you also work from home, the wages you earn are subject to tax in the other country only insofar as the wage is paid for your work in that country. It may be necessary to count the days worked in each of the two countries in order to divide your income in two parts as appropriate.

Because you live in Finland on a permanent basis, you pay Finnish tax to Finland on your entire wages. The country that relieves any double taxation is Finland. This is done by taking account of the tax you have paid to the other country on the part of your wages that you have earned there.

Example: An individual residing in Finland works for a German company. She has made an agreement with the employer company that she works 10 days per month in Germany, and for the rest of the month, she works from home in Finland. She pays tax to Germany on the wages she receives for the 10 days per month.  The Finnish Tax Administration imposes tax on the sum total of her wages. However, the tax she has paid to Germany is subtracted. In accordance with the provisions of the tax treaty between Germany and Finland, the authorities use the credit method to eliminate double taxation. As a result, her Finnish tax is reduced because the amount paid to Germany is subtracted from it.

You work from your home in Finland, and your employer’s country of tax residence is another Nordic country

If you work from your home in Finland, and your employer’s country of tax residence is another Nordic country,  read more: Working in Nordic country – taxes can be reassigned.