Finnish Taxes on a business in the USA

[CarmenfromTexas]

I've lived here for 4 years with my Finnish husband and intend to keep on living here. I am considering investing in a business in the USA.
So here is my question. I naturally would need to pay my taxes in the USA but will Finland also tax me on 100% of the profit as well since I have residency here in Finland? The US doesn't have club membership to the Schengen Agreement.

I worry I could be finished before I start if I will be required to pay double the taxes. I wonder if there is a sort of agreement between the EU and the USA on how to tax people with a foot on each side of the ocean. Any ideas, links, pithy comments? Thanks in advance for any help.

[tjawatts]

You probably should get professional advice. But at a guess I would say if you set your business up as a company, then the company will be taxed in the US. Then anything that you get paid personally will be taxed in Finland (assuming you are resident in Finland), and if you earn over some limit I think the US wants to tax you personally too if you are a US citizen (no matter where the income is coming from).

T

[cors187]

It was a google search
http://www.irs.gov/Businesses/Internati ... -Documents

[AldenG]

It was a google search
http://www.irs.gov/Businesses/Internati ... -Documents

You write as though you provided an answer, and an easily found answer at that.

But you haven't. That link is only the foundation, or less than the foundation, a mere factor, really, in Finnish statutes, regulations, and praxis. If any of these are in violation of a treaty, one doesn't have easy recourse.

You might come to a conclusion (a debatable one, probably) based on what I read in apparently relevant sections of that document, but you certainly haven't provide an answer about what will actually happen. Anyone who reads FinlandForum for a while, not to mention anyone who has actually dealt with Finnish authorities, knows there can be a considerable gap between EU legislation, treaty agreements, etc. and what a particular bureaucrat or office will do when faced with a particular case.

[cors187]

It was a google search
http://www.irs.gov/Businesses/Internati ... -Documents

You write as though you provided an answer, and an easily found answer at that.

But you haven't. That link is only the foundation, or less than the foundation, a mere factor, really, in Finnish statutes, regulations, and praxis. If any of these are in violation of a treaty, one doesn't have easy recourse.

You might come to a conclusion (a debatable one, probably) based on what I read in apparently relevant sections of that document, but you certainly haven't provide an answer about what will actually happen. Anyone who reads FinlandForum for a while, not to mention anyone who has actually dealt with Finnish authorities, knows there can be a considerable gap between EU legislation, treaty agreements, etc. and what a particular bureaucrat or office will do when faced with a particular case.

OP asked for links, i provided a usable link for a US CITIZEN who has US dollars, if you want to provide the OP with gravy , just do it while your sipping you educated earl grey tea .
I just set the table and when doing international business ,the table is better set from the side where the food is coming from.

[CarmenfromTexas]

Thanks for the head start. Yes, I agree I'll need a professional to get down to the core of it. When I find out more I'll post the information. Thanks.

Sounds like any profit will be taxed fully in Finland and anything over 95K (Ha! I wished) will be taxed in the USA as well.