Finances and Taxes in Finland
Understanding Your Finances in Finland
When moving to Finland for work, it’s important to get a good understanding of how personal finances and taxes work. This will help you plan your budget, avoid surprises, and make the most of your time in Finland.
Opening a Bank Account
One of the first things you’ll need is a Finnish bank account. This is essential for:
Receiving your salary
Paying rent and other bills
Accessing online services like mobile payment apps and tax services
To open an account, you usually need:
A valid passport or official ID
A residence permit (if applicable)
A Finnish personal identity code
Proof of employment or studies
Most banks offer online banking services in English and mobile apps to make managing your money easy.
Opening a bank account in Finland may take more effort than expected, especially for newcomers from abroad. Banks are required to follow strict regulations, so be prepared to explain why you need the account, share details about your employment or studies, and provide supporting documents such as proof of income and identity. While the process might feel bureaucratic, it’s all part of national and EU-level efforts to prevent financial crimes like money laundering.
Taxes in Finland
All employees in Finland pay taxes, which fund public services like healthcare, education, and infrastructure.
Here’s what you need to know:
Tax Card: Before starting work, you must apply for a tax card from the Finnish Tax Administration (Verohallinto). Your employer needs this to withhold the correct amount of tax from your salary.
Income Tax: The amount you pay depends on how much you earn. The tax rate includes:
National income tax
Municipal tax (varies by city)
Social security contributions
Filing Taxes: In most cases, your taxes are automatically deducted, and you’ll receive a pre-filled tax return each spring. You’ll need to check and approve it online. If anything is missing or incorrect, you can make changes.
Why You Pay Taxes
Taxes are essential for maintaining Finland’s strong social safety net. Through taxation, residents contribute to a shared system that covers:
Public healthcare and hospitals
Free education from preschool to university
Unemployment and parental benefits
Pensions and social welfare
How Much Will You Pay?
The amount of tax you pay depends on your income and your municipality of residence. You can get an estimate of your taxes by using the Tax Percentage Calculator provided by the Finnish Tax Administration.
Filing and Managing Taxes
Before starting work, you’ll need to request a tax card from Verohallinto, the Finnish Tax Administration.
Most taxes are automatically deducted from your salary.
Financial & Tax Tips Before and After Moving to Finland
Before you move:
Check if your home country has a tax treaty with Finland – this can help avoid double taxation.
Make sure your international bank card works in Finland or consider setting up a temporary online bank account (like Wise or Revolut).
Collect key documents: employment contract, residence permit, ID/passport, proof of income – you’ll need these to open a Finnish bank account.
Use a tax calculator to estimate your future tax rate:
Tax percentage calculator →
After you arrive:
Open a Finnish bank account to receive salary and pay rent or bills easily.
Apply for a tax card at vero.fi – your employer needs this to pay you correctly.
Register with Kela if you’re eligible for social benefits or healthcare coverage.
Track your income and expenses – Finland’s cost of living may differ from what you’re used to.
We're Here to Help
We understand that managing your finances and understanding the tax system in a new country can feel overwhelming. That’s why we support you every step of the way.
We can help you with:
Understanding how taxation works in Finland
Applying for a tax card and navigating MyTax
Opening a Finnish bank account
Setting up a budget that works with your income
Knowing what financial documents you need – and where to get them
You don’t have to figure it all out alone – we’re here to make your financial transition easier.