The planned changes to the Finnish taxation of key employees have now been confirmed. As of 2026, the applicable tax rate for key employees is reduced from 32 to 25 percent. In addition, Finnish nationals will, under certain conditions, be able to benefit from the key employee taxation when returning to Finland after living abroad for a longer period.
Background
The Finnish government agreed on a fiscal plan for 2026-2029 earlier this year, which included proposed changes to the income taxation for key employees (often referred to as foreign experts) coming to Finland. These changes are aiming to boost economic growth and make Finland more appealing to foreign nationals and Finnish nationals returning to Finland after spending years abroad.
Key changes to the key employee taxation introduced in January 2026
The government proposal HE 98/2025 vp was accepted by the Parliament on November 20, 2025. The following changes have been confirmed to take effect on January 1, 2026:
Foreign nationals, who qualify as key employees, will still be able to benefit from the key employee tax rate for a maximum of 84 months. The upcoming changes are not expected to change the application procedure, i.e. applications still need to be filed within 90 days of arrival. The general criteria for key employee taxation, including the minimum salary limit of 5800 euros per month, also remain unchanged.
Before 2026 the foreign expert tax regime has primarily benefited individuals earning above 100 000 EUR per year. As a result of the reduced tax-at-source rate, a higher number of individuals will be able to benefit from the key employee tax regime, as it is expected that individuals earning 70 000–80 000 EUR per year will now benefit from applying for the foreign expert tax regime instead of applying the standard progressive tax rates. Nevertheless, the individuals’ circumstances, incl. possible additional income, the planned duration of the stay as well as the timing of the move to Finland all play a role in determining which tax regime ultimately is more beneficial for an employee. If uncertain, it is advisable to make an estimated comparison calculation to support the decision-making.
Our tax team is available to support with key personnel tax-related questions and withholding tax card applications as well as advising employers on the impact of the upcoming changes.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Lena Nymark-Akerele
Director
Michael Strawson
Senior Manager
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