Pääomaverotus

Pääomaverotus refers to the taxation of capital income in Finland. This encompasses income generated from investments and assets, as distinct from earned income (palkkatulo) or business income (toimintatulo). The primary forms of capital income subject to taxation include dividends from shares, interest from bank accounts and bonds, rental income from real estate, and capital gains realized from the sale of assets such as stocks, funds, and property.

The Finnish tax system categorizes capital income and applies a flat tax rate to it. Currently, this rate is 30% for income up to €30,000 per year, and 34% for income exceeding this threshold. This differs from the progressive tax rates applied to earned income. Certain deductions and allowances are available to reduce the taxable base of capital income. For instance, interest expenses incurred for investment purposes or for acquiring income-producing property can often be deducted.

The objective of capital income taxation is to ensure that income derived from wealth and investments contributes to public revenue, similar to income earned through labor. The system aims to strike a balance between encouraging investment and ensuring fairness in the tax burden. Changes to capital income tax rates and regulations are periodically reviewed and can be influenced by economic conditions and government fiscal policies. Understanding pääomaverotus is crucial for individuals and entities holding investments in Finland to accurately fulfill their tax obligations and optimize their financial planning.