New Expatriate Regime in Finland

From the beginning of 1996 foreign expatriates coming to work in Finland may choose to be taxed on their salary income at a rate of 35 % for periods up to 24 months, instead of being taxed at the ordinary income tax rates.

It is important that the choice is made before the beginning of the assignment, as the employee must apply for the special non-resident status from the local county tax office, either before the assignment begins or during the first 30 days of assignment. The application must be made in writing.

The expatriate regime applies only to expatriates with special skills. The cash salary must amount to a minimum of FIM 35 000 per each month of the assignment. No cash minimum applies to teachers in the Finnish Universities or scientists working on research for public interest (not a private company or private use).