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Finland · taxationLevel 2ProductsAccounts and taxes
Taxes directly affect the return you keep. You don't need to be an expert, but it pays to know the basics. This section is divided into five parts: start with the basics and move on to whatever applies to you.
The tax rules described here apply to individuals who are tax residents in Finland. If you are taxed elsewhere, your own country’s rules apply.
- Capital income tax
- Capital gains
- Dividends
- Withholding tax
- Equity savings account
- Losses
- Reporting
How investments are taxed
Investment returns are capital income: the tax is 30% up to €30,000 and 34% above that. You pay tax on capital gains and dividends (85% of a dividend from a listed company is taxable). On a book-entry account, tax falls due every time you sell at a profit.
The core of taxation is simple: an investment return is capital income, and you pay tax on it only when the profit is realized, that is, when you sell at a profit or receive a dividend. A gain that has grown on paper and has not been sold is not taxable. This makes deferring tax valuable: the longer your money can grow untaxed, the more compounding has time to build up. That is why the choice of account type and fund share class (which decides when the tax falls due) affects the end result more than many people think.
Comparison · equity savings account vs. book-entry account
Open a row to see the difference
From account to tax return
First the two accounts and how they differ, then how taxable returns are calculated, and finally reporting and the limits of planning.
This content is for information purposes only and should not be construed as investment advice or a recommendation. Investing always involves the risk of losing capital. The value of financial instruments and investments can go up or down, and past performance is no guarantee of future returns.