Investment Basics in Finland

Understanding how investment income is taxed in Finland is essential for making informed decisions about where and how to invest.

• Capital income tax: 30% on investment gains and dividends up to €30,000/year, and 34% on amounts exceeding €30,000
• Listed company dividends: 85% of dividends are taxable as capital income — effectively a 25.5% tax rate on dividends
• Tax loss harvesting: investment losses can be deducted from capital gains within the same year and carried forward for 5 years
• Foreign tax credits: if you pay withholding tax on foreign investments, Finland generally credits this against your Finnish tax liability

The osakesäästötili (OST) is Finland's tax-advantaged share savings account, introduced in 2020. It allows individual investors to buy and sell listed stocks without triggering immediate taxation.

• Maximum deposit of €100,000 - you can buy and sell stocks within the account without paying tax on gains until withdrawal
• Only listed stocks (not funds or ETFs) can be held in an OST — available through most Finnish banks and brokers like Nordnet
• Tax is calculated on the total gain when you withdraw funds — gains are taxed as capital income at 30%/34%
• Each person can have only one osakesäästötili — choose your broker carefully based on fees, stock selection, and platform quality

For most investors, diversified funds and ETFs are the simplest way to build a long-term investment portfolio in Finland.

• Finnish banks (Nordea, OP, Danske) offer their own fund selections — compare management fees (hallinnointipalkkio) carefully
• Nordnet and interactive brokers provide access to a wide range of international ETFs with low expense ratios (0.07-0.20%)
• Automatic monthly investing (kuukausisäästösopimus) is available at most banks — invest a fixed amount monthly into chosen funds
• Popular index fund choices include global equity funds tracking MSCI World or S&P 500 — available through all major Finnish providers

Getting started with investing in Finland is straightforward, but a few practical considerations help optimize your approach.

• Open an investment account (arvo-osuustili) at your bank or an online broker like Nordnet — basic accounts have no minimum deposit
• Nordnet's monthly savings plans allow investing from as little as €30/month with no transaction fees on selected funds
• Keep records of all your investment purchases — you'll need acquisition costs for tax reporting in your annual tax return
• If you plan to leave Finland, understand exit taxation rules — unrealized gains may be taxed when you move to certain countries