Tax Residency of Individuals: Finland

25.08.2025

In many European countries, the issue of tax residency is particularly sensitive. Often, the criterion of staying in the country for 183 days or more is not the sole determining factor for the taxation of an individual’s income.

An individual is considered a tax resident of Finland if they:

• Have a permanent home in Finland, or
• Have a habitual abode in Finland, or
• Stay in Finland continuously for more than six months.

Important Note: Tax residency may apply only to part of the year. For example, if an individual arrives in Finland on September 10, 2025, and stays for more than six months, they will be considered a tax resident from that date onward.

Key Criteria for Tax Residency

1. Permanent Home
This applies when an individual has a long-term residence and their center of vital interests is in Finland. For example, owning or renting a home on a long-term basis, and having family living in Finland.

2. Habitual Abode
This is a qualitative criterion that may apply even without a continuous six-month stay. It includes regular and stable connections such as:
•    Frequent stays in Finland (e.g., 4 months annually),
•    Employment or education,
•    Recurring visits,
•    Family or housing to which the person regularly returns.
Each case is assessed individually. If the tax authorities establish regular and stable ties with Finland, the individual may be deemed a tax resident.

3. Continuous Stay Over 6 Months
This is a clear and straightforward criterion. Temporary absences from Finland do not interrupt the continuity of stay for tax residency purposes.
Example: A person living in Sweden near the Finnish border and commuting daily to work in Finland without spending nights in Finland would not be considered to have a continuous stay.

4. Special Considerations for Finnish Citizens

Finnish citizens are considered tax residents:

1. In the year they leave Finland, and
2. For the next three years, unless they prove:

• No permanent home in Finland,
• No stay exceeding six months,
• No significant ties to Finland.

In other words, if you are a Finnish citizen and own a home in Finland, you must sell or rent it out long-term to demonstrate lack of access. Additionally:

• Family members (spouse, children) should not reside in Finland,
• You should not have a business or employment in Finland,
• You must prove that your center of vital interests and permanent residence is in another country.

As mentioned, the “connection to Finland” criterion is assessed on a case-by-case basis.

Conclusion

Tax residency in Finland is not solely based on the number of days spent in the country. While the general rule recognizes residency after a six-month stay, in practice, the quality of ties and nature of presence are also considered. Even without formal housing or 183 days per year, a person may be deemed a resident if they have stable connections (e.g., work, family, regular visits).
Each situation requires individual analysis.

The REVERA team is ready to conduct a preliminary audit of your situation and offer a tailored tax planning strategy in line with international standards.