Limited tax liability: 35 per cent, unless you do something

Who is a non-resident taxpayer

A non-resident taxpayer is someone who lives permanently abroad but receives income from Finland: wages, work compensation, a pension or royalties.

The line to general tax liability is six months: stay in Finland continuously for more than six months and you become generally liable to tax, taxed like a resident. A temporary absence does not break the continuity.

If you have a permanent dwelling and home in Finland, you are generally liable regardless of how long you stay.

Tax at source is 35 per cent

Wages and work compensation received from Finland by a non-resident are subject to a 35 per cent tax at source. It is a final tax: as a rule no deductions are made from it, and no tax return is filed on it.

Thirty-five per cent is well above the effective rate most Finnish residents pay. That is why the next two sections are what this page is actually about.

The tax-at-source card and the 510 euro deduction

510 euros a month: or 17 euros a day where the income covers less than a month, may be deducted before the tax at source is calculated.

There is one condition and it is absolute: the deduction is granted only if it is stated on the tax-at-source card. Without the card, tax is withheld on the whole fee, and the payer cannot correct it afterwards.

Apply for the card from the Tax Administration. Do it before your first invoice, not after.

When to request progressive taxation

A non-resident can request that wage income be taxed progressively rather than at source, as a resident would be. The right applies if you live in

• an EEA state, or
• a state or territory covered by an agreement on mutual assistance and exchange of information in tax matters, or
• you hold a residence permit under the researcher directive.

Progressive taxation requires a Finnish tax return, and earned income received elsewhere is taken into account when your rate is set.

Which is better depends on the amounts. On modest Finnish income, progressive taxation is often considerably lighter than 35 per cent at source; on large income the gap narrows or reverses. Work it out before choosing, or ask us.

How this works through the invoicing service

You can invoice Finnish clients through the service while living abroad. In practice:

1. Tell us your tax status when you register. This is not a formality. It determines what is withheld from your fee.
2. Send us your tax-at-source card if you have one. Without it the withholding is 35 per cent with no deduction.
3. We withhold the tax and report the income to the Incomes Register under Finnish rules.
4. If you request progressive taxation, you file the tax return yourself. We report the income paid and the tax withheld, which is what that return needs.

What this page does not settle

Your country of residence probably taxes you too. Relief from double taxation happens under the tax treaty in your country of residence, not in Finland, and on that country’s rules.

We do not advise on your country of residence’s taxation. We handle the Finnish side and tell you what we withheld and reported, get in touch and we will go through your situation before the first invoice. What we withhold and report on the Finnish side is set out on tax and notifications.

Sources

• Tax Administration: taxation of a non-resident taxpayer’s income, natural persons (vero.fi, checked 22.9.2026)
• Tax Administration: tax-at-source procedure applied to a non-resident taxpayer’s income (vero.fi, checked 22.9.2026)