Finland | Global Mobility Tax | Proposed changes to personal income and foreign expert taxation


July 7, 2025

Global MobilityTax

Finland | Proposed changes to personal income and foreign expert taxation

Summary

The Finnish government agreed on a fiscal plan for 2026-2029 earlier this year. In this fiscal plan they propose changes to income taxation by reducing tax rates for foreign experts coming to Finland. The proposed changes are aimed to boost economic growth and make Finland more appealing to foreign nationals and Finnish nationals returning to Finland after spending years abroad.

As no government bills have been approved on this topic yet, it is uncertain whether the proposed changes will be implemented, however, the aim is to have these changes in force as of 2026. Recently draft versions of the proposed bill have been published for a public commentary round which will end mid-August.

The detail

Key changes on income taxation and their impact

  1. Reducing foreign expert tax “at source” rate from 32% to 25%
  2. Tax relief for Finnish nationals returning to Finland for 24 months, same criteria and principles as with the foreign expert regime
  3. Lowering the taxation for low and middle-income earners
  4. Capping the highest marginal tax rates to 52% – currently this is 57%

What it means

The Finnish government has now proposed changes that may have significant implications for companies with mobile employees, as the suggested changes could impact the costs associated with mobile employees, especially those seconded to Finland. If the tax rates for high-earning individuals will be lower, the cost associated with them will simultaneously lower for the employers, especially if any tax policies are applicable to the assignment. Additionally, as the government proposes to lower the personal income tax rates for low- and middle-income earners, this will make Finland a more competitive option for international talent overall.

The most significant changes relate to the foreign expert regime, where the tax rate would be lowered significantly by 7 percent making it more attractive to a wider group of individuals. For reference the point at which it would become beneficial compared to regular progressive taxation will lower from around EUR 115.000 to approximately EUR 75.000 annually.

Additionally, starting from 2026 Finnish nationals would be eligible for the key employee relief for 24 months, which has previously been available for non-finnish nationals only. These proposed changes are intended to make Finland more appealing to professionals and experts, and simultaneously enhance the talent pool in Finland.

Overall the aim of these measures taken within the fiscal plan is to create work and improve the incentive to work, attract highly educated talent to Finland and to stimulate and boost economic growth, for example, by enhancing the purchase power of individuals.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Meeri Hujanen
Manager

Michael Strawson
Senior Manager

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