UK / Finland tax
UK / Finland tax
I'm planning to move to Finland from the UK. I'm going to rent out my old house, in the UK I'm taxed on this as income. I'm not sure when when I become a Finnish resident if I have to pay tax (declare) this income in Finland too, or if I get a choice in which country I get taxed. I will get legal advice, but it will be good to get more information first. Any ideas?
Re: UK / Finland tax
the vero.fi pages have more and more information in english. you can even complete the tax return in english now with full explanations in english about all parts of it (years ago it was not this good in english).
for rental income from abroad they have a specific page about the topic
https://www.vero.fi/en/individuals/prop ... ty-abroad/
The finnish tax law runs 1st jan - 31 dec, so the date in the year you move to finland becomes important since they don't take account of income before you arrive. Arrive on 1st september and for the first year you only have income in the eyes of the finnish tax authority for four months (and so will pay little tax since you get a full years lower tax rate/tax free allowance). Move to Finland on 1st March and you get the same tax free allowance but will have 10months income accumulated against it.
And when leaving the UK you might (if taxed as an employee) get some refund since on a month by month basis you pay tax assuming you'll be in the UK for the whole tax year, but if you leave on 1st june you've only earned UK income for two months but will have paid tax on the assumption of 12x monthly salary.
for rental income from abroad they have a specific page about the topic
https://www.vero.fi/en/individuals/prop ... ty-abroad/
The finnish tax law runs 1st jan - 31 dec, so the date in the year you move to finland becomes important since they don't take account of income before you arrive. Arrive on 1st september and for the first year you only have income in the eyes of the finnish tax authority for four months (and so will pay little tax since you get a full years lower tax rate/tax free allowance). Move to Finland on 1st March and you get the same tax free allowance but will have 10months income accumulated against it.
And when leaving the UK you might (if taxed as an employee) get some refund since on a month by month basis you pay tax assuming you'll be in the UK for the whole tax year, but if you leave on 1st june you've only earned UK income for two months but will have paid tax on the assumption of 12x monthly salary.
Re: UK / Finland tax
You pay tax in the UK and declare it in Finland. The tax you have paid in the UK is deducted from the tax due in Finland.
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