Dividends are one of the most common ways owners take money out of a Finnish company. The tax rules depend on whether the company is listed, how large the dividend is, and where the shareholder lives. This guide explains the main rules for 2026 in plain terms and what is expected to change in 2027. A dividend is paid from profit that has already been taxed at the corporate income tax rate of 20%, so the shareholder’s tax comes on top.
How Are Dividends From Listed Companies Taxed?
For an individual shareholder, 85% of a dividend from a listed company is taxable capital income, and 15% is tax exempt. Capital income is taxed at 30% up to EUR 30,000 per year and 34% on the part above that. In practice, this means an effective tax rate of about 25.5% on the first EUR 30,000 and about 28.9% above it.
How Are Dividends From Unlisted Companies Taxed?
Most foreign-owned Finnish companies are unlisted, so these rules matter most. The tax depends on the mathematical value of the share. The Tax Administration calculates this from the previous year’s balance sheet: assets minus liabilities, divided by the number of shares.
| Part of the dividend | Taxed as | Taxable | Tax exempt |
|---|---|---|---|
| Up to 8% of the share’s value, first EUR 150,000 | Capital income | 25% | 75% |
| Up to 8% of the share’s value, above EUR 150,000 | Capital income | 85% | 15% |
| Above 8% of the share’s value | Earned income | 75% | 25% |
The EUR 150,000 limit applies per shareholder, not per company. All dividends from unlisted companies in the same year are added together. Earned income is taxed progressively, so a large dividend above the 8% limit can lead to a much higher tax rate.
Example: a shareholder receives EUR 80,000 from a company where the share value is EUR 1,500,000. The 8% limit is EUR 120,000, so the whole dividend is capital income. Of this, 25% (EUR 20,000) is taxable and taxed at 30%, which gives EUR 6,000 in tax. This example comes from the Tax Administration.
What Must the Company Do When Paying a Dividend?
- Withhold tax from dividends paid to individuals: 7.5% on dividends up to EUR 150,000 and 28% on the part above. This is an advance payment, and the final tax is settled in the shareholder’s tax assessment.
- File the annual information return on dividends by 31 January of the year after the dividend became available for withdrawal.
- Keep the general meeting decision on file, because it decides which tax year the dividend belongs to.
The Tax Administration publishes instructions for the annual information return on dividends. Good bookkeeping makes this much easier, which is where our accounting services can help.
How Are Dividends Paid to Non-Resident Shareholders Taxed?
If the shareholder lives outside Finland, Finland usually withholds tax at the source. The standard rates are 30% for non-resident individuals and 20% for non-resident companies. These rates are often lower under a tax treaty, typically 10 to 15% for ordinary dividends and 0 to 5% for larger direct holdings.
An EU parent company that directly holds at least 10% of the paying company can receive dividends without withholding, if it meets the conditions of the EU Parent-Subsidiary Directive. To use a treaty rate, the recipient must also be the beneficial owner of the dividend. The Tax Administration explains the details in its guidance on payments of dividends, interest and royalties to non-residents.
What About Dividends From Abroad?
A Finnish tax resident who receives dividends from an EU, EEA or treaty country is generally taxed in the same way as on Finnish dividends. If the foreign country withheld tax, a credit may be available under the tax treaty. See the Tax Administration’s page on foreign dividends.
What Changes in 2027?
The rules for taxing dividends in the hands of the shareholder are not expected to change in 2027. The 8% rule, the EUR 150,000 limit, the capital income rates and the withholding rates described above stay as they are, based on the current government proposals.
The main change is on the company side. The government has proposed lowering the corporate income tax rate from 20% to 18% from tax year 2027. The proposal is still going through Parliament as part of the budget process, so it is not law yet. You can follow it on the Finnish Government’s website. Our article on the Finnish corporate tax rate has more detail.
A lower company tax leaves more profit to distribute. Take EUR 100 of profit paid out as a dividend within the 8% limit and below EUR 150,000. At 20% corporate tax, the shareholder receives EUR 74 after tax. At 18%, the shareholder receives about EUR 75.85. The difference is small, but it can change the best mix of salary and dividends, so it is worth recalculating once the law is approved.
Dividend or Salary?
Many owner-managers combine salary and dividends. Salary brings payroll costs, while dividends follow the rules above, so the best mix depends on the company’s profit, its net assets and the owner’s other income. Our article on payroll taxes and regulations in Finland covers the salary side. If you are still choosing a company form, see our guide to business entities in Finland.
Plan Your Dividends With Leinonen Finland
Dividend rules look simple, but the 8% limit, the EUR 150,000 threshold and treaty rates make mistakes easy. Our specialists in taxation and accounting can help you plan dividends and stay compliant. Contact Leinonen Finland to discuss your situation.
