Tax Advisors

[go2hel]

In preparation for possible move to Helsinki from the United States, I have some Finnish income tax related questions.

- What are the tax implications of selling my house after I move to Finland. Ideally, we'd like to rent out our US residence rather than selling it, but I'd like to understand the tax implications of various scenarios, including selling a few years after I move. I assume the sale of a rental property would be a capital gain, but what would the cost basis be?

- What is the Finnish tax treatment of various forms of US retirement income (SS, IRA, and Roths). I've used the calculators at vero.fi to figure out taxation of my potential wage income, but the calculators have a warning that they are not accurate for foreign sourced income. I'm guessing that SS and IRA withdraws would be treated similar to wage income, but would there be some exclusions?

Answers to these questions from forum members is welcome, but I'd also appreciate recommendations for a Finnish tax advisor who I could consult with on these and there issues.

[Rosamunda]

Before you start spending money on tax advisors, I suggest you call Vero - the Tax Office.

https://www.vero.fi/en/About-us/contact-us/ (after 8 Nov as they have a data system overhaul this week)

They are great at giving advice (even in English). Honestly, it's a good place to start. Don't imagine that they are hell-bent on getting every last cent out of you. They'll just give you the facts.

https://www.vero.fi/en/individuals/tax- ... __receipt/
https://www.vero.fi/en/detailed-guidanc ... x_treatie/

[Piet]

I have had the same problem, (from a different country ..Canada)

Basically what the tax office told me before I moved is that the sale of the house will be taxed as income for that part that is considered a profit, so the difference between buying price and selling price.. there are some costs that can be deducted but it is a huge paperwork problem. There is also some rule about having lived in that house as an owner for 2 years to get deduction of this tax..but...Better sell it before you are moving, it saves you a sh*t load of money. Your pension will be taxed if the tax treaty with US says so. Check the tax treaty with Finland and US.

There are some exceptions about tax on pensions depending on these treaties. Example: when you have a pension from a state/governmental job from the Netherlands, this pension cannot be taxed in Finland, if you have however also pension from Finland, the tax on that pension will be calculated with the not taxed foreign pension as an offset for the percentage of payable tax over the Finnish pension (my situation).

Good luck in figuring this out, expect everything to be taxed

[Raaflaub]

@Piet, do you know off hand if Canadian CPP/OAS will be taxed in Finland?