US–Finland Expat Taxes: What Americans Need to Know

Thinking of moving to Finland? With its world-class education, clean environment, strong social safety net, and beautiful Nordic landscapes, it’s no wonder many Americans are taking the leap. As you might expect, a country that consistently ranks in the 10 top places to live also comes with high taxes, so it’s essential to understand your US-Finland expat tax obligations. The US taxes its citizens no matter where they live, and Finland has its own comprehensive tax system, which means you may owe taxes twice on the same income. But knowing how the two systems interact can help you avoid double taxation and stay compliant in both countries. Let’s break down everything you need to know.

Do I Need to File US Expat Taxes?

Key US Tax Forms

US-Finland Expat Tax Deadlines

Catch-Up on US-Finland Expat Taxes with the Streamlined Procedure

US-Finland Expat Tax Agreements

Moving to Finland: What to Expect

Visa & Residency Options Finland

Navigate US-Finland Expat Tax Requirements

US-Finland Expat Taxes for Families

US-Finland Expat Tax Strategies to Avoid Double Taxation

Self Employment in Finland

Investing in Finland as a US Expat

Retiring in Finland

US-Finland Expat Taxes Made Easy with MyExpatTaxes

Do I Need to File US Expat Taxes?

The US taxes based on citizenship, rather than residency. Does that really mean that you have to file your US taxes no matter where you live in the world? If you’re a US citizen or Green Card holder and you meet any of the thresholds, the answer is yes.

In 2025, you’ll need to file your 2024 US taxes if:

Filing Status	Income Threshold
Single	$14,600
Married Filing Jointly	$29,200
Married Filing Separately	$5
Self-Employed	$400
Qualifying Widow(er)	$29,200
Head of Household	$21,900

Key US Tax Forms

For your US tax compliance, expats should be aware of these forms:

• Form 1040 – Annual US income tax return.
• Form 2555 – To claim the Foreign Earned Income Exclusion (FEIE).
• Form 1116 – To claim the Foreign Tax Credit (FTC).
• FinCEN Form 114 (FBAR) – if your foreign financial accounts’ combined maximum balances exceed $10,000 in total at any time during the calendar year.
• Form 8938 (FATCA) – For reporting foreign accounts and assets if thresholds are met, starting at $200,000 for single filers.

Of course, these forms and many more are supported by our expat tax software. MyExpatTaxes can handle your tax situation, no matter how complicated.

US-Finland Expat Tax Deadlines

Since you are likely to have extra homework to prepare your taxes in two countries, the US gives expats a 2-month automatic filing extension:

Date	Deadline
April 15th	Standard Filing Deadline
June 16th	Expat Tax Filing Deadline
October 15th	FBAR & Tax Extension Deadline 1 (by digital request)
December 15th	Tax Extension Deadline 2 (by written request)

It’s important to note that your tax payment still needs to be made by April 15th to avoid penalties.

When it comes to your Finnish taxes, the tax year follows the calendar year (just like the US), with returns due in April. Residents receive pre-filled returns in March of the following year, and only return the form if corrections are needed. Since most taxable income is held at source for non-residents, you only need to file a return when you have income that is not subject to at-source withholding, such as Finnish rental income or US investment income.

You can stay up-to-date with deadlines (as well as tips and offers) straight to your inbox with the MyExpatTaxes newsletter.

Catch-Up on US-Finland Expat Taxes with the Streamlined Procedure

Fallen behind on your US tax filings while living in Finland? Don’t panic—the IRS offers a helpful amnesty program called the Streamlined Procedure. As long as your failure to file was non-willful (meaning you genuinely didn’t know you had to), you can catch up without facing penalties by filing the last three years of tax returns and the last six years of FBARs. Just make sure to act before the IRS contacts you—once they do, this option is no longer available.

US-Finland Expat Tax Agreements

The US-Finland tax treaty, signed in 1989, helps prevent double taxation and clarifies which country has taxing rights over specific types of income. In most cases, if you’re a resident of one country and earn income in the other, only your country of residence will tax that income. However, the majority of the benefits outlined in the tax treaty are not applicable to US citizens due to the Savings Clause, which allows the US to apply taxes as if the treaty were not in effect. But not to worry, the treaty supports the use of foreign tax credits to help you avoid double taxation.

The US-Finland totalization agreement ensures that individuals who work in both countries aren’t subject to social security taxes in both systems at the same time. Typically, you’ll only pay into the system of the country where you live. It also allows you to combine work credits from both countries to qualify for benefits, which is particularly helpful for expats who’ve spent part of their career in each country.

Moving to Finland: What to Expect

Living in Finland brings many advantages, especially its top-notch universal healthcare for permanent residents, excellent education system, high quality of life, and low unemployment, crime and corruption. You’ll love the breathtaking natural surroundings, from pristine forests and lakes to the chance of spotting the Northern Lights. The societal culture is transparent and egalitarian, with honest governance and minimal hierarchy in workplaces.

On the flip side, Finland’s winters can be long, cold, and dark—a real challenge for those unaccustomed to limited daylight. The cost of living is high for Europe, especially in cities like Helsinki, although life is still, on average, 17.2% cheaper than in the US. While the majority of Finns speak English, especially in the larger cities, English speakers often struggle to learn what is one of the more difficult Scandinavian languages.

Overall, Finland offers a fantastic quality of life and a supportive environment, especially for families—but you’ll want to be ready for chilly winters, and taking your time to integrate socially.

Visa & Residency Options Finland

You don’t need a visa to visit for up to 90 days but, from 2026, you’ll need to apply for an ETIAS travel authorization to visit Finland or other Schengen Area countries.

If you plan to stay for more than 90 days or you plan to work, you’ll need to apply for a residence permit from outside the country. Residence permits are available if you are coming to Finland to study, work or reunite with family.

Navigate US-Finland Expat Tax Requirements

Tax Residency

You’ll be treated as a tax resident if:

• Your permanent home or habitual abode is in Finland; or,
• You are present in Finland for a continuous period of more than six months.

Temporary stays out of the country don’t affect the six-month timeline. Once you have moved out of Finland, you continue to be treated as a resident for three calendar years, unless you prove that you have no ties to the country.

Tax on Personal Income

With excellent social and health care, Finland’s personal taxes are relatively high, although there is a generous personal allowance.

Residents of Finland have a personal allowance of €21,200, and a progressive National Tax rate starting at 12.64%, capped at 55%.

Non-residents are taxed a flat 35% on employment and self-employment income. Dividends are taxed at a flat 30%.

Social Security

Employers contribute on average 17.38% to employee’s pensions, 0.2% (0.8% on income over €2,455,500) to unemployment insurance, 0.54% on average for Statutory Accident Insurance, 0.06% on Statutory Group Life premiums, and 1.87% on Sickness Insurance.

Employees contribute 7.15% to pension insurance (8.65% for those between 53-62 years), 0.59% to unemployment insurance, and 1.52% for Sickness Insurance (only those with salaries over €16,862).

Other Notable Taxes

• Standard rate VAT: 25.5%
• Property Tax: 0.41%-2% (2%-6% for vacant plots)
• Municipal tax is charged at 4.70%-10.90%, based on location. Non-residents pay a flat 7.5%
• Transfer Tax: 3% on transfers of real property, 1.5% on transfers of shares (where the assets are mostly comprised of real property) or other securities
• Gift Tax: 8%-17% based on the value of the gift
• Inheritance Tax: 7%-19% of the value of the inherited property for immediate family members
• Capital Gains: 30% on gains up to €30,000, 35% on the excess
• Corporate Tax: 20%

US-Finland Expat Taxes for Families

If you’re a US citizen living in Finland, your tax filing status depends mostly on your marital situation and your spouse’s citizenship. If you’re married to another US citizen or Green Card holder, you’ll usually benefit most from filing as Married Filing Jointly. But if your spouse isn’t a US person, they don’t need to be dragged into the US tax system–filing as Married Filing Separately keeps their income separate. If you’re unmarried (or unmarried according to the IRS), have a qualifying US dependent who lived with you for more than half the tax year, and cover most household expenses, you might qualify as Head of Household, which can offer a lower tax rate than filing separately. And if none of these options apply, you can simply file as Single. Choosing the right filing status is key to getting the best outcome on your US return.

The Child Tax Credit

The Child Tax Credit (CTC) is a US tax benefit designed to support families with children under 17. For US expats living in Finland, the rules are the same as back home. The CTC can lower your tax bill by up to $2,000 for each qualifying child, and up to $1,700 of that amount may be refundable—even if you owe no tax. To receive the full refundable amount, your income must fall below certain thresholds: $200,000 for single filers and $400,000 for joint filers. However, if you claim the Foreign Earned Income Exclusion (FEIE), you won’t be eligible for the refundable portion.

US-Finland Expat Tax Strategies to Avoid Double Taxation

Living in Finland as a US citizen means you could be taxed by both countries—but don’t worry. The IRS provides tools to help you avoid paying tax on the same income twice. The two most important options available are the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC).

Foreign Earned Income Exclusion (FEIE)

The Foreign Earned Income Exclusion (FEIE) lets you exclude up to $126,500 of foreign-earned income from your US taxes each year. To qualify, you must either be resident in Finland for a full tax year (the Bona Fide Residence Test) or be outside the US for at least 330 full days in any 12-month period (the Physical Presence Test). This exclusion only applies to earned income—such as wages or self-employment—not passive income like interest, dividends, or rental income. You’ll need to file Form 2555 to claim it.

Foreign Tax Credit (FTC)

The Foreign Tax Credit allows you to offset your US tax liability by the amount of income tax you’ve paid in foreign taxes. It applies to both earned and passive income, but the IRS requires you to match income types—so tax paid on dividends, for example, can only offset US tax on dividend or other investment income. The Foreign Tax Credit is especially valuable for US expats in Finland, where higher local tax rates often exceed US taxes—allowing you to offset your full US tax liability and even carry unused credits back one year or forward up to 10 years. To claim it, include Form 1116 with your tax return.

Foreign Housing Exclusion

If you qualify for the Foreign Earned Income Exclusion (FEIE), you might also benefit from the Foreign Housing Deduction. This lets you deduct up to $20,240 in reasonable housing expenses—like rent and utilities—as long as your costs exceed the base housing amount (16% of the FEIE limit). With Finland’s relatively high cost of living, this could be very useful, especially in cities such as Kuopio, Espoo and Helsinki.

Self Employment in Finland

Finland’s strong digital infrastructure and reputation for innovation make it a great place for expats to start a business or work independently. There is no digital nomad visa but you can apply for a self-employment visa for a fee of $416, provided you have a minimum monthly gross income of $1,283(2025).

Expats can register as self-employed without facing major restrictions. You’ll need to register with the Finnish Tax Administration and pay income tax on your earnings, just like local entrepreneurs. Finland also has a well-organized social system, and self-employed workers must contribute to social insurance through the YEL pension scheme, which covers retirement and other benefits. VAT also applies (10-14% reduced rate, 25.5% standard rate) if your income meets the threshold.

While you’ll still need to report self-employment income earned in Finland to the IRS, thanks to the totalization agreement, you’ll only need to pay social security taxes in Finland.

Investing in Finland as a US Expat

Finland offers expats a variety of options for growing wealth. One common approach is property investment. US citizens are allowed to purchase real estate in Finland, whether for personal use or to generate rental income. Apartments are typically part of a housing cooperative, and owners can buy shares initially with the right to purchase outright in a number of years. Cities like Helsinki and Tampere are especially appealing thanks to stable property values and a strong rental market. The buying process is transparent, and comes with 2-4% real estate agent fees, legal fees and 3% transfer tax. For US tax purposes, any rental income from Finnish property must be reported on your tax return via Schedule E.

Another great way to build long-term financial security is by contributing to US-based retirement accounts like IRAs and Roth IRAs. As long as you have eligible earned income and meet the income thresholds, you can contribute up to $7,000 per year or $8,000 if you’re over 50, even while living abroad. Many US expats also prefer to stick with US-based stocks and bonds, since investing in foreign mutual funds, like Finnish ETFs, can trigger steep IRS penalties due to PFIC rules.

To simplify your investment planning, MyExpatInvest offers expert guidance tailored to expats. You’ll receive help navigating US tax rules, limiting PFIC exposure by investing in US-based funds, and choosing the right global investment and retirement strategy—with a free initial consultation and personalized expert matching.

Retiring in Finland

As the world’s happiest country, it’s no wonder many Americans are heading to Finland to enjoy their golden years.

Finland doesn’t offer a dedicated retirement visa, but retirees can move there by applying for a temporary residence permit, reuniting with family, or seeking permanent residency if they’ve lived there before. To qualify, retirees need a valid passport, proof of local accommodation, proof of sufficient income (such as a pension), and health insurance. After living in Finland for four years, you can apply for permanent residency. You can apply in the US for an entitlement certificate for medical care in Finland, which provides access to the public healthcare system.

You can still receive your US pension while living in Finland, and as a Finnish resident you’ll be taxed on worldwide income, including your pension, at the progressive national tax rate. For those with higher pension income, an additional tax for pension recipients applies. Those with lower pensions typically pay no tax due to the pension income allowance and basic allowance. If you have worked in Finland for 3 years before retiring, you may also be eligible for a Finnish pension.

Finland has a wealth of fantastic retirement locations. Turku is a charming university city, with a mix of riverfront living, cultural events, and a laid-back coastal atmosphere. Tampere combines affordable housing with vibrant city life, stunning lakes and forests, and strong community amenities. Porvoo is perfect for history lovers seeking a peaceful, picturesque setting with its well-preserved old town and easy access to Helsinki.

US-Finland Expat Taxes Made Easy with MyExpatTaxes

If the thought of having to file taxes in two countries makes you want to go back to bed, we get it. But filing your US taxes from abroad doesn’t have to be stressful–and we’ll prove it to you!

Our award-winning expat tax software and outstanding customer service has helped thousands of satisfied expats file on time for an affordable price. We have all the tax forms you need to become and stay tax-compliant and most clients e-file in under 30 minutes. You can test our software before you commit—no upfront payment required. Plus, our friendly customer service team is here to help if you have questions about FBAR, FEIE, FTC, or anything else related to US-Finland expat taxes. Take control and file today!