Sukupolvenvaihdoksen

Sukupolvenvaihdoksen is a Finnish term describing the process of transferring ownership of a family‑owned business to the next generation. The aim is to ensure business continuity within the family by facilitating succession from parents to children or other close relatives while maintaining control of the enterprise.

The concept covers transfers of ownership in small and medium‑sized family businesses, including sole proprietorships and family‑owned corporations. The transferee typically becomes the new owner and operator of the business, continuing the existing activity and taking responsibility for its future development.

The transfer must meet criteria set by Finnish tax law. The parties apply for a sukupolvenvaihdos with the Tax Administration and provide documentation on ownership, management control, and the intended continued operation of the business for a defined period. The regime is designed to ensure the transferee remains active in the business and that the business stays within the family over the long term.

If the conditions are fulfilled, the transfer is eligible for special tax treatment under the inheritance and gift tax system and related rules. The aim is to reduce the tax burden associated with transferring business ownership to the next generation and to support continuity, rather than prompting liquidation or sale for tax reasons. The exact tax impact depends on the relationship between the parties, the form of the transfer (gift or sale), and whether the business remains active as a family enterprise.

Sukupolvenvaihdos is seen as a tool for preserving family businesses, safeguarding employment, and facilitating orderly generational succession.