Finland Vero and Tax Card 2026: Complete Guide for New Employees
The identity code and tax card: resident and non-resident status, the six-month threshold, 35% tax at source, progressive tax and the annual return.
Short answer
If you work for a Finnish employer, your wages are generally taxable in Finland. A permanent home in Finland or a continuous stay exceeding six months generally makes you a Finnish resident taxpayer; worldwide income can then fall within Finnish taxation, subject to tax treaties. A nonresident employee staying no longer than six months is generally subject to 35% tax at source on Finnish-source wages, although eligible persons can request progressive taxation. A Finnish personal identity code is needed for a tax card. For a resident employee, withholding can be 60% if no tax card is available. Tax residence is separate from residence-permit, DVV municipality and Kela status.
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Relocation to Finland1. Determine tax residence first
A foreign citizen is generally a Finnish resident taxpayer if their permanent home/main place of residence is in Finland or they stay in Finland continuously for more than six months. Temporary trips do not automatically interrupt the continuous period.
If the permanent home remains abroad and the stay is no longer than six months, the person is generally a nonresident taxpayer. A tax treaty can restrict Finland's taxing rights even where Finnish domestic law treats the person as resident.
2. Personal identity code and tax card
A Finnish personal identity code is required for a tax card. The code can be issued by DVV, Migri or, in certain tax-related cases, the Finnish Tax Administration.
The withholding percentage on the tax card guides the employer's withholding. If expected annual income, deductions or employment circumstances change, a revised tax card may be needed through MyTax.
3. Six months or less / more than six months
| Situation | General tax approach |
|---|---|
| ≤ 6 months, nonresident | Finnish-source wages: generally 35% tax at source; eligible persons may request progressive taxation |
| > 6 months continuously | Resident taxpayer; progressive taxation and generally worldwide-income reporting |
| Permanent home in Finland | Resident status can arise independently of the six-month count |
| Foreign employer | Permanent establishment, leased work, treaty and work arrangement require separate analysis |
4. Progressive taxation option for nonresidents
Eligible nonresidents who are tax residents of an EU country, Norway, Iceland, Liechtenstein or a tax-treaty country can request progressive taxation instead of the 35% tax-at-source system.
Foreign earned income can affect the progressive rate even where Finland taxes only Finnish-source income. Special rules such as the 75% rule can apply, so progressive taxation is not automatically cheaper in every case.
5. Foreign employer and remote work
Working from Finland for a foreign employer does not mean that foreign-paid salary is automatically outside Finnish tax. A stay exceeding six months generally triggers resident taxation and worldwide-income reporting.
For stays of six months or less, the employer's Finnish permanent establishment, leased-employee status, tax treaty and physical place of work can change the result. A1/social-insurance rules require separate analysis.
6. Pre-completed tax return
A foreign employee who becomes a resident taxpayer by staying over six months receives a pre-completed tax return in the following spring. Income, deductions and foreign-source income should be checked.
Missing or incorrect data must be corrected in MyTax or on the relevant form. Employer reporting does not remove the taxpayer's responsibility to check the return.
7. Common mistakes
Checklist
- Treating a residence permit as tax residence
- Counting six months only within a calendar year even though the continuous period can cross year-end
- Assuming foreign-employer salary is automatically tax-free
- Starting payroll without a tax card
- Underestimating annual income and creating back-tax risk
- Failing to review foreign income on a resident return
- Treating tax treaty, A1 and social insurance as one issue
- Skipping the construction and shipyard tax number requirements
8. New employee tax checklist
Checklist
- Finnish personal ID available?
- Stay ≤6 months or >6 months?
- Where is the permanent home?
- Finnish or foreign employer?
- Has the tax treaty been checked?
- Has the correct tax card or tax-at-source card been obtained?
- Annual income estimate realistic?
- Have foreign income and deductions been assessed?
- Have A1 and social insurance been checked separately?
- Is the tax return follow-up in the calendar?
9. How to get the tax card: forms, order and timing
For someone coming to work for a Finnish employer, Vero's order is this. If you do not yet have a Finnish personal identity code, fill in form 6150e and sign it at a Tax Administration service point, where your identity is checked. Then fill in form 5042e, the tax card application for people moving to Finland, and send it to Vero. If you already have an identity code, no service-point visit is needed.
The tax card arrives by letter; give the card, or the withholding rate on it, to your employer. Once you have an identity code and online banking credentials, any revised tax card can be ordered in MyTax (OmaVero). If there is no card by the first payday the employer has to withhold 60%, so apply as soon as the employment contract is signed.
If you will stay in Finland six months or less, ask for a tax-at-source card on form 5057e. Tax at source is usually 35%, but the card can include a deduction of EUR 510 a month or EUR 17 a day: on a monthly wage of EUR 2,000 the tax falls from EUR 700 to EUR 521.50. Tax at source is final, so no Finnish tax return is filed; keep the payslips for your home-country return.
10. Key employees: 25% tax at source from 2026
From 1 January 2026 the tax at source for key employees fell from 32% to 25%. It requires that you become a Finnish resident taxpayer when you start work, do work that needs special expertise for a cash salary of at least EUR 5,800 a month (benefits in kind do not count), and were not a resident taxpayer in Finland during the five previous calendar years. Teaching and research at a higher education institution have no salary threshold.
Apply within 90 days of starting work on form 5042e, ticking the key-employee box and attaching the employment contract or an employer's statement. A foreign national can use the scheme for up to 84 months; from 2026, Finnish citizens returning from abroad can use it for up to 60 months. The tax is final and no deductions are allowed; no Finnish health-insurance contribution is collected, but pension and unemployment insurance contributions are withheld unless you have an A1 certificate.
11. Tax card in Finland: which card you need
Short answer: to get a tax card in Finland you need a Finnish personal identity code; without one, fill in form 6150e and sign it at a Tax Administration service point first. Then apply with form 5042e, or ask for a tax-at-source card on form 5057e if you will stay six months or less. Apply as soon as the employment contract is signed: without a card the employer withholds 60%.
| Situation | Card to ask for | Withholding |
|---|---|---|
| Staying over 6 months, or a permanent home in Finland | Tax card, form 5042e | The progressive rate on the card |
| Staying 6 months or less | Tax-at-source card, form 5057e | 35%, after a deduction of EUR 510 a month or EUR 17 a day |
| Key employee with a cash salary of at least EUR 5,800 a month | Form 5042e with the key-employee box ticked, within 90 days | 25% tax at source |
| No card by the first payday | Apply at once | The employer withholds 60% |
Common questions about this topic
Can I receive salary without a tax card?
Payroll can still be processed, but a resident employee may face 60% withholding where no tax card is available. Completing the tax-card process before payroll is therefore important.
Am I resident if I stay exactly six months?
Under Vero's current guidance, if your permanent home is not in Finland, a stay of exactly six months generally remains nonresident; the duration threshold is more than six months.
I am staying only a few months. Do I need a tax card?
You need a tax-at-source card (form 5057e) rather than an ordinary tax card. Without it the employer withholds 35% of the whole wage; with it the deduction of EUR 510 a month or EUR 17 a day is taken off first. If you are resident in an EU or tax-treaty country, you can ask for progressive taxation instead.
Do I have to file a tax return in my first year?
If you became a resident taxpayer, Vero sends a pre-completed tax return the following spring; check it, add foreign income and deductions, and correct it in MyTax by the date printed on it. If you were taxed at source as a nonresident, no Finnish return is needed.
How do I get a tax card in Finland?
If you have no Finnish identity code, fill in form 6150e and sign it at a Tax Administration service point, then apply for the tax card on form 5042e. If you already have an identity code, no service-point visit is needed. If you will stay six months or less, ask for a tax-at-source card on form 5057e instead. Give the card to your employer before the first payday, or the employer withholds 60%.
Guides usually read alongside this one
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Open guideOfficial sources
The following official or public sources were checked for this guide. Current authority instructions always take precedence.
Relocation to Finland
For people and families moving to Finland: the residence route, registrations, tax, banking and settling in, planned in the right order.
This guide is general information. The related service is a case-specific review of your circumstances and documents.
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