Moving out of Finland and Tax implications

[amitgup]

Anybody knows tax implications if Finland citizen moves to U.S. or India. From Vero site it mentions that if you are citizen you are considered to be tax resident for that year and 3 following years. But does it mean one has to pay tax on foreign income to Finland?

From someone I understood if a Finland citizen moves to U.S., he only needs to report U.S. income in Finland but no tax applied on U.S. income, if there is any Finland income that will only be taxed in Finland but tax calculation will be considering overall income (i understood Finland income will be taxed in high slab as per total income).

Someone here with experience in such situation?

[riku2]

there is normally an agreement with other countries so that you don't pay tax twice. so in the case of a finnish citizen moving to the US, the tax you have paid in the US on your US income is subtracted from the tax the finnish authority would charge on that and you only pay the difference US -> finnish tax. But the vero site says you can avoid this dual tax situation if you do not keep "close ties' with finland:

‘Close ties’ may refer, for example, to your retaining living accommodation in Finland, or maintaining your right to Finnish social security.

i suppose the concept is that a finn working abroad for a few years and renting out their house remains under the finnish taxation system for those years. Those who sell up and move permanently are treated like non finnish citizens and finnish taxation stops when you leave the country.

[betelgeuse]

i suppose the concept is that a finn working abroad for a few years and renting out their house remains under the finnish taxation system for those years. Those who sell up and move permanently are treated like non finnish citizens and finnish taxation stops when you leave the country.

A rented house or apartment does not automatically constitute close ties. However, if the move lasts only a couple years as above, then Finnish tax is due.