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In short: In Finland, almost all investment income is taxed as capital income at 30% up to EUR 30,000 per year and 34% on the part above that. Capital gains follow this rate, with no discount for holding longer; instead you may swap your actual purchase cost for a deemed cost of 20% of the sale price (held under 10 years) or 40% (10 years or more). Listed-company dividends are 85% taxable, 15% tax-free, with 25.5% withheld at source. Interest on Finnish deposits and bonds carries a final 30% source tax. Fund and ETF returns are usually capital income: profit-shares from investment funds (Finnish funds and most UCITS) are capital income rather than dividends, though distributions from some foreign ETFs structured as companies may instead be taxed as dividends. Distributing units are taxed yearly, accumulating units only when sold. An equity savings account lets listed shares grow tax-deferred up to a EUR 100,000 deposit.

Capital gains and investment taxation in Finland (2026)

Kontoo editorial team · Updated 06/25/2026 · 8 min read

If you invest while living in Finland, almost everything your money earns lands in one box: capital income (pääomatulo). Shares, ETFs, fund units, bonds, interest, rental profit, crypto gains, the lot. That box has its own flat-but-stepped tax rate, separate from the wage scale. This lesson walks through how the 2026 rules treat gains, dividends, interest and funds, plus a couple of features unique to Finland. It is general education, not tax advice, and the rules can change.

Know your basket. Investment income is capital income, taxed at 30% up to EUR 30,000 a year and 34% above that, separately from your salary.
Pick the cheaper cost basis when you sell. Compare actual acquisition cost against the deemed cost (20% or 40% of the sale price) and use whichever leaves the smaller gain.
Use the small-sales exemption. If your total sale proceeds for the year are EUR 1,000 or less, the gain is tax-free.
Consider an equity savings account. Listed shares grow tax-deferred inside it, with one account per person and a EUR 100,000 deposit cap.

What matters

The two-basket system. Finland splits personal income into earned income (your salary, taxed on a progressive scale) and capital income (your investments). Nearly every return on money sits in the capital income basket: gains on shares, ETFs, fund units and bonds, dividends, most interest, rental profit and crypto gains. For 2026 the capital income rate is 30% on capital income up to EUR 30,000 a year and 34% on the portion above EUR 30,000. These rates and the threshold are unchanged from prior years. Capital gains. Your gain is the sale price minus what you actually paid plus selling costs. Finland adds a helpful twist: instead of actual cost you may use the deemed acquisition cost (hankintameno-olettama), a fixed slice of the sale price. It is 20% if you held the asset under 10 years and 40% if you held it 10 years or more, and you use whichever method gives the lower taxable gain. With the deemed method you cannot also deduct selling expenses. There is also a small-sales exemption: if your total sale proceeds for the whole year are EUR 1,000 or less, the gain is tax-free (and, symmetrically, losses are not deductible if total acquisition cost of what you sold was EUR 1,000 or less). Losses offset capital gains first, then other capital income, and carry forward five years. Dividends. For listed companies, 85% of the dividend is taxable capital income and 15% is tax-free; the company withholds 25.5% at source. For unlisted companies the rules are intricate, splitting the dividend against the share's mathematical value, with thresholds at 8% return and EUR 150,000. Interest. Interest on Finnish bank deposits and Finnish bonds carries a final 30% source tax, collected by the bank and kept outside the 30%/34% calculation. Other interest, such as private loans or most foreign interest, is ordinary capital income. Funds and ETFs. Profit-shares from investment funds (Finnish funds and most UCITS) are capital income rather than dividends, with no 85%/15% dividend split. Note the exception: distributions from some foreign ETFs that are legally structured as companies (for example many US-domiciled ETFs) may instead be taxed as dividends. Distributing units are taxed yearly (30% withheld); accumulating units make no distribution, so tax is deferred until redemption or sale.

ExampleSuppose you bought ETF units for EUR 6,000 and sell them for EUR 11,000 after 12 years; your only capital income that year. Method one, actual cost: gain = 11,000 - 6,000 = EUR 5,000. Method two, deemed cost (40% for 10+ years): deemed cost = 40% x 11,000 = EUR 4,400, so gain = 11,000 - 4,400 = EUR 6,600. Here actual cost wins, giving a EUR 5,000 gain. Tax at 30% (you are under the EUR 30,000 step) = EUR 1,500. Had you paid only EUR 5,000 for the units, the deemed method (gain EUR 6,600 vs actual EUR 6,000) would still favour actual cost. Always compare both.

Accumulating fund units defer all tax until you sell, while distributing units are taxed each year. To see how that deferral compounds over time, run two scenarios through a compound-interest calculator and compare the end balances.

In depth

Why accumulating funds are quietly powerful

Finland does not apply any general annual deemed tax to accumulated fund returns for individuals; there is no equivalent of Germany's Vorabpauschale. So an accumulating (growth) ETF or fund unit is taxed only when you sell it, because it makes no distribution, while a distributing unit is taxed every year as profit is paid out, with 30% withheld at source. Over a long horizon, deferring tax lets the full pre-tax amount keep compounding, which can meaningfully beat paying a slice annually. When you finally sell the accumulating unit, you still get to choose the deemed acquisition cost (20% or 40% of the sale price), which can further trim the taxable gain. The trade-off is simplicity: distributing units give you cash flow and a pre-filled tax return, while accumulating units need you to track and report the eventual sale.

The equity savings account (osakesäästötili)

Each resident may hold one equity savings account, with a lifetime deposit cap of EUR 100,000 (raised from EUR 50,000 at the start of 2024). Inside it you can buy and sell listed shares and reinvest dividends with no tax on internal trades or dividends; tax is deferred. Tax arises only on withdrawal, on the profit portion: taxable amount = (accrued profit / current account value) x amount withdrawn, taxed as capital income with 30% withheld and the 30%/34% step applied on assessment. Note the limits: the account holds only listed shares, not fund units or bonds, and a loss is deductible only in the year you close the account. It suits a buy-and-reinvest equity strategy more than a fund-based one.

What is new for 2026

The headline rates and threshold are steady: 30% up to EUR 30,000 of capital income and 34% above, with the EUR 30,000 step confirmed unchanged by vero.fi for 2026. Two changes are worth noting. First, bank customer bonuses, discounts and comparable relationship-based benefits become taxable capital income in 2026, with exceptions (for example, bonuses applied directly to your loan interest in the same relationship, or non-cash benefits you cannot freely direct). Ordinary loyalty bonuses from shops and groceries stay tax-free. Second, Parliament adopted anti-avoidance measures targeting certain related-party share-swap structures used to convert or sidestep dividend taxation, effective 2026. As always, check the final 2026 figures on vero.fi near filing time, since rules can change.

Checklist

Did I compare actual acquisition cost against the 20%/40% deemed cost and pick the lower gain?
Are my total annual sale proceeds above EUR 1,000, so the gain is actually taxable?
For foreign dividends, did I claim the foreign withholding credit only up to the treaty rate?
Did I treat accumulating fund units as tax-deferred and distributing units as taxed each year?

Common myths

Myth: Holding shares for years lowers my Finnish capital gains tax rate.

Reality: The rate stays 30%/34% no matter how long you hold. What a long hold changes is the deemed acquisition cost: 40% of the sale price after 10 years versus 20% before, which can shrink the taxable gain but never the rate.

Myth: My foreign broker withheld tax, so I owe nothing more in Finland.

Reality: Foreign dividends are still Finnish capital income. The foreign tax is credited only up to the treaty rate, and Finland taxes the rest. If too much was withheld abroad, you reclaim the excess from that country, not from Finland.

Sources

Frequently asked questions

What is the capital gains tax rate in Finland for 2026?

Capital gains are taxed as capital income at 30% on the part up to EUR 30,000 of capital income per year and 34% on the part above EUR 30,000. There is no reduced rate for holding an asset longer, but a longer holding period unlocks a more generous deemed acquisition cost (40% instead of 20% of the sale price).

Are accumulating ETFs taxed every year in Finland?

No. Accumulating (growth) fund and ETF units are not taxed annually, because they make no distribution; tax arises only when you sell, as a capital gain. Finland has no general annual deemed taxation of accumulated fund returns for individuals, unlike Germany's Vorabpauschale. Distributing units, by contrast, are taxed each year as the profit is paid out, with 30% withheld.

How are foreign dividends taxed for Finnish residents?

Foreign dividends are taxed as Finnish capital income, with 85% of a listed-equivalent dividend taxable. Foreign tax withheld at source is credited against your Finnish tax, generally up to the treaty rate (often 15%). Anything withheld above the treaty rate must be reclaimed from the source country itself; Finland will not credit the excess.

All lessons · Glossary · Editorial · Kontoo does the math and explains – this is general education, not tax, legal or financial advice.

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