Inheritance And Gift Taxes

Finland has a gift and inheritance tax system that requires every beneficiary to pay tax on gifts and on his or her share of an estate. Inheritance tax must be paid in Finland if the deceased or the inheritors lived in Finland at the time of deceased's death. Inheritance tax covers all property of the deceased whether it is situated in Finland or not. Double taxation is eliminated with inheritance tax treaties. Gift tax is levied if the donator or the beneficiary lived in Finland at the time of donation. A person is deemed to be living in Finland when having a permanent home in Finland.

In principle, the tax authorities value transferred items at market value. However, in practice, the values are 60% to 70% of market values. Gifts given within a period of three years preceding a deceased's death are includible in the estate. The value of an advance will also be added to the net value of the inheritance.