The basic VAT rate in Finland is 24%. VAT for food products is 14%, VAT for printed products, medicines, cultural activities and services is 10%. VAT for goods turnover within the European Union (between two companies located in different countries of the EU) is 0%. Under certain conditions VAT for goods and services turnover outside the EU will be 0%.

Tax on company profits is calculated according to the profit on the basis of the annual report and amounts to 20%. Earnings of shareholders received in dividends or income from capital are subject to capital income tax. Capital income tax rate is progressive and amounts to 30% or 32%.

Tax planning is promoted in Finland, and we give advice on internal optimization and external trading schemes, tax return and VAT, etc.

Transactions with company shares are subject to share alienation tax at the rate of 1.6%. Transactions with shares of residential joint stock companies are subject to 2.0% tax. Real estate transactions are subject to 4% tax.

Opening of Oy company can be divided into several stages:
1) preparation of documents, registration by the Registrar, opening of accounts — 1 day or more
2) activation of the company in the commercial register — 2-7 days
3) activation of the bank account — 1 day
4) VAT/ALV register, ennakoperintä register — 7 days to 28 days, depends on the tax service availability.

Documents for the purchase of a company can be prepared remotely by telephone and mail. Finnish bank account activation requires the presence of at least one foreign founder. Fully remote re-registration is also possible (by appointing a Finnish resident Director and/or Manager of Accounts).

A foreigner can open a Finnish company, provided that the board necessarily has a Finnish resident. This is a temporary measure necessary for the registration of a company. We help you to fulfill this condition and we provide for selection and control of resident representative.

Further, on the basis of the company’s activities, its foreign founders can obtain a residence permit in Finland and a social insurance number. Then you can replace the interim board member by the chief founder who has already received an official status in Finland.

In 2015, Finnish banks toughened the requirements to the companies opened by foreigners. Unfortunately, the new requirements addressed even EU citizens, in particular, the citizens of Estonia, Latvia, Lithuania, Poland.

Any Finnish company needs a citizen or resident of Finland in its board, or it will not get an account.

Due to these stricter requirements, most banks do not open accounts for foreign owners of companies, if they do not have a registration in Finland and Finnish ID. Even for EU residents!
Thanks to our experience, knowledge of the Finnish legislation, openness to the state, we can help resolve this issue.

EU nationals can be registered and get ID henkilötunnus with our help in Finland, which gives the right to open a company in Finland without third parties in the composition of the board.