Starting up a self-employed business in Finland

[ShaynePhoto]

Hi everyone!

Hope you all are doing well.

I'm going to jump right into it as I fear that this mail may be a bit long. Ive come to Finland to be with my Girlfriend and I've wanted to open up a self-employed business here in Photography.

Now, what I did do initially was find a company who deals with unemployment and helps employers connect with employees and had them 'employ' me as a photographer for them. They take a share of what I bring in and so it is all fair in the end. I have all the paper work and visa's necessary and I am fully legal in what I am doing... My next question though is about TAX

It turns out that with the agreed share that I give to them plus the TAX plus the Social Security TAX (Which, can someone let me know how much exactly it is), I am making next to nothing and could never survive earning 40% of what I make.

So, now im looking for options that will help me earn a bit more after TAX, and I believe that would be through a self-employed business.

Does anyone have any ideas, suggestions,tips, do's and dont's when it comes to opening up self-employed businesses with regards to my situation above?
Also, if i have a !"#¤% month (Sorry for the language) and earn only €200.00, will that still be taxed and things? The income will obviously vary per month...


I hope this mail isnt a messy blurb of information haha but If anyone can help, I would be most grateful.

P.S I have no business training whatsoever so All this tax stuff is quite new to me.

[rinso]

I get the impression your business model is not very lucrative. (not surprisingly since everybody nowadays has a digital camera and think they can make good pictures )
From what I know most photographers struggle to make a decent living unless they have a rare specialty.

Did you do some market research before you started your business?

[Adrian42]

They take a share of what I bring in and so it is all fair in the end. I have all the paper work and visa's necessary and I am fully legal in what I am doing... My next question though is about TAX

It turns out that with the agreed share that I give to them plus the TAX plus the Social Security TAX (Which, can someone let me know how much exactly it is), I am making next to nothing and could never survive earning 40% of what I make.

So, now im looking for options that will help me earn a bit more after TAX, and I believe that would be through a self-employed business.

I don't understand how you are currently earning your money.

It sounds as if you are already working self-employed?


The main difference between being employed and being self-employed is that with an employment you work your 37.5 hours per week and it is the employer's problem whether or not he has enough work for you.
Taxation-wise the difference is not that big, and in any case for every € 1 that arrives at your bank account roughly € 1 has to be paid in taxes and social security (a bit less if you have a very low income).

Also, if i have a !"#¤% month (Sorry for the language) and earn only €200.00, will that still be taxed and things? The income will obviously vary per month...

For things with a flat rate (e.g. the mandatory 23% for pension when you are self-employed) you always pay the same on your profits, for everything else the sum of the profits in one year is what matters.

Assume you have € 20,000 profits in one year (after deducting your expenses and excluding the VAT you have to charge that is anyway not your money), then you will have to pay roughly € 8,000 in taxes and social security and will have around € 12,000 left.

[beetal barber]

You only end up with 12k out of a small amount like 20k ? Surely this is incorrect ??? And paying your taxes up front on estimate is another .

Are there any Libertarians in Finland ?

[Adrian42]

You only end up with 12k out of a small amount like 20k ? Surely this is incorrect ???

It is correct and expected.

If you expect to get a pension you can live from after retirement, then the quarter of your income you have to pay as pension contribution is rather low.

And all the things like healthcare or roads or anything else the government provides also cost money, so it is only fair that you pay taxes for that.

[Pursuivant]

You only end up with 12k out of a small amount like 20k ? Surely this is incorrect ??? And paying your taxes up front on estimate is another .

Finland is a tax paradise, don't you know, its a paradise for taxes!

Are there any Libertarians in Finland ?

I think theres a nudist colony in Seurasaari.

[beetal barber]

I don't wont to be forced to pay for a pension ! I want to be free to choose what I do with MY money !!! and invest or stash it where I so wish !!! my girlfriend is a fu**ing statist, she never told me that or about Finland being a welfare statist state

[Adrian42]

I don't wont to be forced to pay for a pension ! I want to be free to choose what I do with MY money !!!

Finland has a guarantee pension of € 738.82 per month plus 85% of reasonable housing costs.

People like you you who want to refuse to pay for their pension would get that for free, and that would be extremely unfair.

my girlfriend is a fu**ing statist, she never told me that or about Finland being a welfare statist state

You moved to Finland without knowing that the Scandinavian countries are known to be the prime welfare states?

You would have known better had you read at least the introduction section of the Wikipedia article about the country you were moving into...

[Pursuivant]

she never told me that or about Finland being a welfare statist state

Should this be added to the FAQ under "things everyone knows, but nobody tells you"?

my girlfriend is a fu**ing statist,

I think this needs to be updated under the definitions of getting screwed

I want to be free to choose what I do with MY money !!! and invest or stash it where I so wish !!!

So what you doing in Finland then? You was drunk and got hit by a bus or something?