Nettopääomatulot

Nettopääomatulot, often translated as net capital income, refers to the income derived from assets or investments after deducting related expenses. In Finnish tax law, this category primarily encompasses income from capital, such as interest, dividends, rental income, and capital gains from the sale of assets. Expenses that can be deducted from these income sources include interest paid on loans taken for investment purposes, costs associated with earning rental income, and brokerage fees related to selling investments.

The concept of nettopääomatulot is crucial for determining an individual's tax liability on their investment earnings. Finnish tax legislation distinguishes between earned income and capital income, with different tax rates typically applied. Capital income is generally taxed at a flat rate, whereas earned income is subject to progressive taxation. Therefore, accurately calculating nettopääomatulot is essential for correct tax declaration and payment.

For instance, if an individual receives dividends from stocks and also pays interest on a loan used to purchase those stocks, the net capital income from this investment would be the dividends received minus the interest paid. Similarly, rental income from a property minus expenses like repairs, maintenance, and property taxes would constitute net rental income, a component of net capital income. The Finnish Tax Administration (Verohallinto) provides detailed guidance and forms for taxpayers to report and calculate their net capital income.