Finland Inheritance Tax 2026: Rates, Exemptions, and How to Calculate
Finland Inheritance Tax 2026: Rates, Exemptions, and How to Calculate
Finland's inheritance tax changed significantly on January 1, 2026. The tax-free threshold rose from €20,000 to €30,000, which means more small inheritances now escape taxation entirely. But the system is still complex — especially for non-residents and foreigners inheriting Finnish assets.
The Two Tax Classes
Finnish inheritance tax is calculated based on your relationship to the deceased. There are two tax classes:
Tax Class 1 — Spouse, children, grandchildren, and parents:
| Inheritance Value | Base Tax | Rate on Amount Over Threshold |
|---|---|---|
| €30,000–€40,000 | €100 | 7% |
| €40,000–€60,000 | €800 | 10% |
| €60,000–€200,000 | €2,800 | 13% |
| €200,000–€1,000,000 | €21,000 | 16% |
| Over €1,000,000 | €149,000 | 19% |
Tax Class 2 — Siblings, cousins, and unrelated beneficiaries:
| Inheritance Value | Base Tax | Rate on Amount Over Threshold |
|---|---|---|
| €30,000–€40,000 | €100 | 19% |
| €40,000–€60,000 | €2,000 | 25% |
| €60,000–€200,000 | €7,000 | 29% |
| €200,000–€1,000,000 | €47,600 | 31% |
| Over €1,000,000 | €295,600 | 33% |
Example calculation: An adult child inheriting €45,000 from a parent pays €800 (base tax on the first €40,000) plus 10% of €5,000 = €500. Total inheritance tax: €1,300.
Key Exemptions and Deductions
Tax-free threshold: Inheritances under €30,000 are completely tax-free as of 2026.
Spouse deduction: Surviving spouses receive a statutory deduction of €90,000. This means a spouse inheriting up to €120,000 (€30,000 threshold + €90,000 deduction) may pay little to no inheritance tax.
Minor child deduction: Direct descendants under age 18 receive a deduction of €60,000.
Right of possession deduction (hallintaoikeus): If the surviving spouse retains possession of the family home, the inheritance tax on the property is further reduced using a formula: property value × 5% yield factor × age-based coefficient. For a spouse under 44, the coefficient is 12 — meaning the deduction can significantly reduce the taxable value of the home.
Marital property equalization (tasinko): Any equalization payment made to a surviving spouse through the marital property division (ositus) is entirely free of inheritance tax.
Non-Residents and Foreign Heirs
Under the EU Succession Regulation (Brussels IV), if the deceased was habitually resident in Finland, Finnish inheritance law — including Finnish inheritance tax — applies to the entire estate, even assets located abroad.
This means foreign heirs inheriting from someone who lived in Finland are subject to Finnish inheritance tax. Each heir is personally responsible for paying their own tax, which is calculated based on their share of the estate.
Filing: Inheritance tax is processed automatically after the estate inventory deed (perukirja) is submitted to the Tax Administration (Verohallinto). The Tax Administration typically takes 6–12 months to issue individual tax decisions (perintöveropäätös).
Under the 2026 "Digital First" law, all official communications from Verohallinto are delivered primarily through the MyTax (OmaVero) portal. Heirs must configure Suomi.fi messaging to avoid missing their inheritance tax assessment.
Free Download
Get the Death in Finland — Expat Emergency Checklist
Everything in this article as a printable checklist — plus action plans and reference guides you can start using today.
The Under-Valuation Trap
A common mistake — especially among non-Finnish families — is recording artificially low values for property, vehicles, or shares in the perukirja to reduce immediate inheritance tax.
This backfires badly. When the inherited assets are eventually sold, capital gains tax is calculated against the perukirja valuation. Finland's capital gains tax rate (30–34%) is substantially higher than the inheritance tax brackets (7–19% for Class 1). Under-valuing a property to save €2,000 in inheritance tax can cost €10,000+ in capital gains tax when it's sold.
How to File and Pay
The estate inventory deed (perukirja) is submitted to the Tax Administration, which then issues individual tax decisions to each heir. Payment is made through MyTax. If an heir cannot afford the lump sum, they can apply for a payment arrangement with the Tax Administration.
The Someone Died in Finland: English Speaker's Emergency Guide includes a complete inheritance tax calculation worksheet, deduction checklist, and step-by-step filing instructions for non-Finnish speakers.
Get Your Free Death in Finland — Expat Emergency Checklist
Download the Death in Finland — Expat Emergency Checklist — a printable guide with checklists, scripts, and action plans you can start using today.