Being Self-employed in Finland

Useful advice on jobs, careers and entrepreneurship in Finland. Find job postings, job information, work permits and more.
Post Reply
Akitafox
Posts: 8
Joined: Sun Oct 29, 2017 7:46 pm

Being Self-employed in Finland

Post by Akitafox » Fri Jan 26, 2018 9:48 pm

Hello,

i tried to find the right answer here in the forum, but its such a bulk of infos here that i rather ask straight because i really wanna know the answer for this case.

Ok... i’m thinking of moving to Finland, or actually i moved to Finland last year but i’m still registered in Germany. The only and the main reason for this is that i’m self-employed and run my own business and i don’t have any employees. In 99% of the cases i work outside of the country i live in.

Now since i moved to Finland i actually thinking about moving completely, which means my company as well. Now my question... what do have to do and more important, what and how much roughly do i have to pay monthly/yearly ?

Right now i have a private health insurance and my private pension insurance in Germany, with this stuff i got the certificate of residency for a EU citizen a few days ago.

I have no idea what it would mean to register my company in Finland and i’m afraid that i have to pay more then i have to pay now... with everything, tax, insurance, etc.

Also, if i keep my company in germany can i still get a Kela card ? I would love to do some small jobs here and there in Finland but i guess i need the Kela card for it.

I hope somebody can help me here. Thank you!



Being Self-employed in Finland

Sponsor:

Finland Forum Ad-O-Matic
 

biryvih
Posts: 88
Joined: Sun Nov 12, 2017 12:04 am

Re: Being Self-employed in Finland

Post by biryvih » Mon Jan 29, 2018 1:13 pm

You seems a bit confused. Kela Card? Where did you get the information about having a Kela Card and doing business?

If you are Non-EU you will need a permit, I think it can be any permit B-A-or P (not Kela card). Kela card is more like when you will need to visit hospitals, pharmacy, Kela Office, Te-toimisto etc.. but not for doing business. But you will need a social security number, without that no business.

In order to register your company visit vero office. Tell them you want to register it. Than go talk to someone who will tell you about the financial stuff (you will create a projection for the future etc) From there you will get the idea about the taxes. OR you can do this before hand and meet someone from the municipality (I don't remember but I think it is called "Yritys" something.. search it on google), they can help you for free with the projection for the future, than you can decide if it is a good idea to have a company in here.

You can also apply for "starttiraha", that should help to sustain your work, in case you aren't making enough money.

I don't know how things are in Germany, but in here taxes are quite high. And yep you might need an accountant to do your books. and it is quite expensive. Every month it will cost you roughly 200€. You can do your books by yourself, but I think right now (since you are confused about permit and Kela card) I wouldn't recommend you to risk.

ummmm what else? be more specific and I might be able to tell more. Good Luck.


betelgeuse
Posts: 2777
Joined: Thu Aug 29, 2013 1:24 am

Re: Being Self-employed in Finland

Post by betelgeuse » Mon Jan 29, 2018 2:57 pm

biryvih wrote:
Mon Jan 29, 2018 1:13 pm
But you will need a social security number, without that no business.
You don't see fully informed either since there are no social security numbers in Finland.
Akitafox wrote:
Fri Jan 26, 2018 9:48 pm
Ok... i’m thinking of moving to Finland, or actually i moved to Finland last year but i’m still registered in Germany. The only and the main reason for this is that i’m self-employed and run my own business and i don’t have any employees. In 99% of the cases i work outside of the country i live in.

Now since i moved to Finland i actually thinking about moving completely, which means my company as well. Now my question... what do have to do and more important, what and how much roughly do i have to pay monthly/yearly ?
Sole traders do not get to choose the country they declare their income in. The tax treaty has information on this between Finland and Germany. It's likely that you are breaking the rules already. You can use the Tax percentage calculator from for a rough estimate:

https://prosentti.vero.fi/VPL2018/Sivut ... ieli=en-US

You will also need to make pension payments (YEL).


biryvih
Posts: 88
Joined: Sun Nov 12, 2017 12:04 am

Re: Being Self-employed in Finland

Post by biryvih » Mon Jan 29, 2018 5:54 pm

betelgeuse wrote:
Mon Jan 29, 2018 2:57 pm
biryvih wrote:
Mon Jan 29, 2018 1:13 pm
But you will need a social security number, without that no business.
You don't see fully informed either since there are no social security numbers in Finland.
Akitafox wrote:
Fri Jan 26, 2018 9:48 pm
Ok... i’m thinking of moving to Finland, or actually i moved to Finland last year but i’m still registered in Germany. The only and the main reason for this is that i’m self-employed and run my own business and i don’t have any employees. In 99% of the cases i work outside of the country i live in.

Now since i moved to Finland i actually thinking about moving completely, which means my company as well. Now my question... what do have to do and more important, what and how much roughly do i have to pay monthly/yearly ?
Sole traders do not get to choose the country they declare their income in. The tax treaty has information on this between Finland and Germany. It's likely that you are breaking the rules already. You can use the Tax percentage calculator from for a rough estimate:

https://prosentti.vero.fi/VPL2018/Sivut ... ieli=en-US

You will also need to make pension payments (YEL).
Sorry my bad, maybe I have used wrong wordings. Cheers


Akitafox
Posts: 8
Joined: Sun Oct 29, 2017 7:46 pm

Re: Being Self-employed in Finland

Post by Akitafox » Mon Jan 29, 2018 8:05 pm

Thanks for the answers. I guess i‘m confused because i went to Vero and wanted to asked but they couldn‘t make a apointment since i don‘t have a Kela Card. They said i need the card first before they can do anything... or i should drive all the way to HEL, they might can helpt me there at Vero. Thats were the confusion is from.

Also, i guess i‘m not doing anything wrong since i‘m a EU citizen and i have the right choose my place of living freely within the EU as long as i‘m not getting anything from the local social system. The people at Migri said since i still have my company in Germany i count as a person with „enough private money“ and thats why i can live here.

Is the tax in Finland the same as in Germany... as much more you earn the more you have to pay ?


betelgeuse
Posts: 2777
Joined: Thu Aug 29, 2013 1:24 am

Re: Being Self-employed in Finland

Post by betelgeuse » Mon Jan 29, 2018 10:01 pm

Akitafox wrote:
Mon Jan 29, 2018 8:05 pm
Also, i guess i‘m not doing anything wrong since i‘m a EU citizen and i have the right choose my place of living freely within the EU as long as i‘m not getting anything from the local social system. The people at Migri said since i still have my company in Germany i count as a person with „enough private money“ and thats why i can live here.
Migri deals with the right to be physically in the country. Vero deals with taxes. EU leaves taxation to to member states. Not being covered by the local social security system, does not mean you don't have duty to pay tax.
Akitafox wrote:
Mon Jan 29, 2018 8:05 pm
Is the tax in Finland the same as in Germany... as much more you earn the more you have to pay ?
For sale traders yes. Not for limited liability companies.


Akitafox
Posts: 8
Joined: Sun Oct 29, 2017 7:46 pm

Re: Being Self-employed in Finland

Post by Akitafox » Tue Jan 30, 2018 12:07 am

Double taxation is not allowed in the EU, you pay tax where your main resendicy is... in this case germany. As long as i dont make my income in Finland i don‘t have to pay taxes here... this would change as soon as i would get an employment or a registered company in Finland. Then i would pay taxes from this income but not for the one from my german company.

At least this is what i got told and read.


heretostay
Posts: 124
Joined: Sat Apr 08, 2017 12:54 pm

Re: Being Self-employed in Finland

Post by heretostay » Tue Jan 30, 2018 8:34 am

Maybe I am wrong, but after 90 days of being in Finland, EU citizens must register their right of residence here. Doesn’t that qualify as being primarily a resident of Finland and not Germany at that point?


betelgeuse
Posts: 2777
Joined: Thu Aug 29, 2013 1:24 am

Re: Being Self-employed in Finland

Post by betelgeuse » Tue Jan 30, 2018 10:46 am

Akitafox wrote:
Tue Jan 30, 2018 12:07 am
Double taxation is not allowed in the EU, you pay tax where your main resendicy is... in this case germany.
"There is no general EU measure to eliminate double taxation. Most EU countries have bilateral tax treaties in place with each other to relieve double taxation when it occurs."

https://ec.europa.eu/taxation_customs/f ... axation_en
Akitafox wrote:
Tue Jan 30, 2018 12:07 am
As long as i dont make my income in Finland i don‘t have to pay taxes here... this would change as soon as i would get an employment or a registered company in Finland. Then i would pay taxes from this income but not for the one from my german company.
Your residence creates a permanent establishment for a foreign business to Finland which gives the right to tax self-employed business income under the Germany Finland tax treaty.


Post Reply