Few Queries - Needed Help

[arvindkothari]

Dear All,

I have just arrived into Finland two weeks ago and settling down.

I had few following questions. Appreciate if anybody can help.

1. Are there any tax planning opportunities at Finalnd ? What are different options available for reduction in tax ? Do they have some investment opportunities like in India ?
Is there something called expat rule like that of in netherlands ? By this rule, only 70% of income of expat is taxable and 30% is exempt.

2. Any observation - which bank in India provide the best exchange rate for Euro for bank transfer ? My judgement is that SBI provides the best rate but their services are not good.

3. Heard that tax on cars in finland is very high. Any guidance or idea on how much is generally tax on car which is about 4 years old.

4. Can indian driving license be exchanged for finnish driving license ? Is it a easy procedure and how much time does it take ? Has anybody done it ?

5. Is it possible to transfer accumulated pension when a person leaves Finland ?

Thanks in anticipation.

Looking forward for further interaction.

Best Regards,
Avi

[Rosamunda]

1. Are there any tax planning opportunities at Finalnd ? What are different options available for reduction in tax ? Do they have some investment opportunities like in India ?

You can get deductions for domestic services (housekeeper, gardener, cleaning and decorating work etc) and also home improvements (eg we had a new roof last year) - all on http://www.vero.fi
Vero has a new service for expats which has been mentioned on here several times recently. http://www.intofinland.fi they have a walk-in Q&A service in Kamppi. Otherwise, being self-employed is the best way to reduce your tax bill.

Is there something called expat rule like that of in netherlands ? By this rule, only 70% of income of expat is taxable and 30% is exempt.

No, not for income tax BUT Yes, on social contributions there is a rule.... but it is only valid for temporary contracts (I think the max is 2 years, not sure). Again the "Into" office can tell you more, or call Vero, or ask your employer (assuming you are a salaried employee). But if you want full social cover then it is probably not a good idea to opt out.

2. Any observation - which bank in India provide the best exchange rate for Euro for bank transfer ? My judgement is that SBI provides the best rate but their services are not good.

No idea

3. Heard that tax on cars in finland is very high. Any guidance or idea on how much is generally tax on car which is about 4 years old.

Can you rephrase your question? Do you want to buy a second hand car in Finland or are you bringing a car into Finland as your personal belongings???

4. Can indian driving license be exchanged for finnish driving license ? Is it a easy procedure and how much time does it take ? Has anybody done it ?

No idea.

5. Is it possible to transfer accumulated pension when a person leaves Finland ?

Well, if you opt out of social security contributions then there won't be anything to transfer.... The "Into" office in Kamppi can also give you information about KELA.

[Rip]

4. Can indian driving license be exchanged for finnish driving license ? Is it a easy procedure and how much time does it take ? Has anybody done it ?

You can use your Indian driving license here up to 12 months from your arrival to Finland. After residing (and using a car) in Finland for 6 months (but not more than 18 months after your arrival) you may apply for your Indian license to be exchanged for a Finnish one.

http://www.poliisi.fi/poliisi/home.nsf/ ... endocument

One change of foreign license that I know recently took about three months in Helsinki (from leaving the application to picking up the new license). It is not supposed to take that long, but apparently they have some backlog problems at the police precinct...