Juurisijoitus

Juurisijoitus refers to a property holding system used in Finland, specifically in the context of bookkeeping and taxation. In this system, the ownership of an asset, typically a real estate property, is transferred from the original owner to a company or a trust, without resulting in a change in taxation.

The primary purpose of juurisijoitus is to reduce taxes and inheritance duties. According to Finnish tax laws, if an individual sells their real estate, they must pay capital gains tax on the profit made from the sale. However, by transferring ownership to a company or a trust, the gain from the sale is not considered taxable for the individual.

In a juurisijoitus arrangement, the company or trust purchases the property from the individual, and then rents it back to the seller. The rent paid by the seller is then deductible from their taxable income. This approach is considered a tax-efficient way to transfer ownership of a property, as it minimizes taxes and avoids the need to pay capital gains tax.

It is worth noting that juurisijoitus arrangements are subject to certain conditions and requirements as per Finnish tax laws. The arrangement must be made with the intention of achieving a legitimate tax benefit, and not simply to avoid taxation. Moreover, the tax authorities closely scrutinize such arrangements, and if there are any indications of tax evasion, the authorities can void the arrangement.

Overall, juurisijoitus is a complex and specific system that requires careful planning and adherence to tax laws. Those considering juurisijoitus should consult with a tax professional or financial advisor to ensure they are in compliance with all applicable regulations.