Finland Capital Income and Dividend Taxation – Finland

Finland listed company dividends: 85% taxable capital income at 30/34%, 15% tax-free. Example: €10,000 dividend → €8,500 taxable. If first €30k capital: €8,500 × 30% = €2,550 tax. Effective 25.5% rate. Favorable treatment encourages stock market investment.

Finland unlisted (private company) dividends: complicated! 25% of 8% net assets = earned income (progressive tax), 75% of 8% = capital income (30/34%). Above 8% threshold: 75% earned income, 25% capital. Designed prevent salary-to-dividend arbitrage. Requires calculation company net assets annually.

Finland capital gains shares, bonds, funds: 30% up to €30k total capital income, 34% above. Calculated on net gain (proceeds - cost basis). Must report in annual return. No holding period exemptions. Finland treats all gains as income.

Finland property gains: 30/34% on profit from sale. NO exemption primary residence (unlike many EU countries). Includes purchase costs, improvements deductible. Inheritance received property: original owner's cost basis carries forward (stepped-up basis).

Finland crypto: capital gains from Bitcoin, Ethereum, etc. taxed 30/34% as capital income. Mining income can be capital or earned depending on scale. Must track cost basis, report in return. Finland clear treatment - crypto = property subject to capital tax.