Finland is often perceived as a high-tax country, but for businesses, the reality is different. The country offers a competitive tax environment specifically designed to support innovation, growth, and sustainability.
Changes in 2027
Starting January 1, 2027, Finland is making two significant improvements:
- Lower corporate tax rate: The corporate income tax rate drops from 20% to 18%, making it one of Europe’s lowest rates.
- Extended loss carry-forward: Tax losses can be carried forward for 25 years (up from 10 years) for losses confirmed from the 2026 tax year onward. Compare that to other European jurisdiction in this carry-forward/carry-back comparison
Current situation in Europe (2025/2026)
Why Finland's tax administration stands out
Finland's tax administration offers significant practical advantages:
- Binding advance rulings help you avoid tax surprises
- Free guidance from dedicated teams for companies
- Modern, pre-emptive approach instead of retrospective audits
- Digital-first administration that saves time and money
The Finnish Tax Administration emphasizes transparency and predictability, two things international businesses value highly.
For entrepreneurs, SMEs, and expats looking to establish operations in the Nordics, Finland offers more than competitive rates. It provides a stable, predictable tax environment backed by helpful administration and targeted incentives for R&D and clean investments.
Want to learn more about doing business in Finland? Check out our complete Finland guide.
