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Where you pay taxes and what conditions apply to you as a remote worker varies and depends on how much of your life you have moved with you and where you are considered to have your domicile.
By domicile, the state usually means the place where you are registered, but for those working remotely from Åland, it depends partly on what you have left behind in your home country. For example, the following can have an impact:
More about domicile according to the tax treaty can be read at Tax.fi: Articles in tax treaties - point 2.4
It is up to your previous home country to release you, neither Åland nor Finland can influence that. If your previous home country continues to deduct tax from your salary even after the move, you must read the tax treaty to understand how your taxation needs to change. Remember to inform the tax authority in your previous home country when work is performed abroad remotely.
The articles in tax treaties can be found at Tax.fi
On the website Nordic eTax you can find information aimed at those who live in a Nordic country while having income or assets in another Nordic country.
Read more about taxes in the Nordic countries at nordisketax.net
How do I pay taxes?How you should go about paying taxes in Finland depends entirely on your employer in your home country. If your employer follows the instructions in the link about employer obligations (see below), you only need to apply for a new tax card in Finland. Then your employer takes care of the rest, from paying taxes and contributions to submitting notifications to the income register.
If your employer, however, does not fulfill their obligations, the situation becomes more complicated. In that case, you must yourself:
Please note that your foreign employer also has obligations in Finland. Ask your employer to read about the employer obligations that apply to foreign companies in Finland at Tax.fi
Pension and unemployment insurance contributions need to be agreed upon with your employer. That is, whether it is your employer who is responsible for the agreement and pays the contributions, or whether you should do it yourself.
At Tax.fi you can find important information for those who have moved to Åland but receive their salary from a foreign employer in another country, such as Sweden.
Your move to Åland means that you pay taxes according to the Åland municipal tax law. This also applies to those moving within Finland.
The law gives you, among other things, the right to deduct any medical expenses if you have been registered in Åland since 31 December of the previous year.
More information about the Åland municipal tax law can be found here:
17 Åland supplement (3017r) at Tax.fi
Tax Assessment Procedure Act 1558/1995 - § 5 Home municipality at Finlex.fi
You can make deductions when you need an extra residence. For example, if you are registered and residing in Åland, but need to rent accommodation at the location where your workplace is situated.
Read more about deductions for your second residence at Tax.fi
Good to know for those moving from another part of Finland is that the Åland municipal tax law differs from Finnish law. This means, among other things, that the deduction for housing at the place of work may differ in terms of amount.
Read more at Tax.fi: Taxation in Åland, point 2.1.9
In addition to the Åland municipal tax law, there are also other deductions you can make if you work remotely:
Read more about deductions for remote workers at Tax.fi: Remote work and deductions
Different rules apply to those who work at sea or as flying personnel.
At sea, you primarily pay taxes in the flag state, that is, the country in which the vessel is registered. If the flag state and your country of domicile are not the same, it is your country of domicile that ensures you do not have to pay double taxation.
Flags of convenience such as the Bahamas are an exception. If you work on such a vessel, you pay taxes in your country of domicile instead.
Seafarers with a family have an obvious country of domicile, while there is room for interpretation for seafarers without a family.
Flying personnel are taxed differently depending on which tax treaty applies to you. If you are resident in the Nordic countries, you pay taxes in your country of domicile, regardless of where the work has its flight base.
For flying personnel with a family, the country of domicile is also more straightforward than for personnel without a family.
You can contact the Åland Tax Office for more information if you have questions about taxation.
My husband and I, along with our two minor children, have moved from Sweden and settled in Åland. I still have my job in Sweden and work 100 percent remotely for that job. My husband now works in Åland.
Where do we pay taxes?You should both pay taxes in Finland (Åland).
Is there any difference if we had moved to Åland from, for example, Spain?No, it doesn't matter where you move from. However, some countries continue to tax you even after you move away from the country. These include, among others, the USA, as the country bases its taxes on citizenship. However, this does not apply to countries within the EU.
Read more at Tax.fi: Articles in the tax treaties, point 2.1.1
My husband and I and our two minor children have moved from Sweden and settled in Åland. I still have my job in Sweden but only perform parts of my work remotely. Sometimes I need to travel to the workplace in Sweden to work there.
Where do we pay taxes?Your husband pays taxes in Finland (Åland).
Where you pay taxes depends on how much you work in the other country.
If you are resident in Finland and have your centre of life here (i.e. family/home), you are generally liable to pay tax in Finland, regardless of how much you work abroad. However, it is unclear when the other country starts taxing your income. It is entirely dependent on when the country, in this case Sweden, considers that they have the right to tax your income. Therefore, it is important that you carefully record how and where you work.
Finland eliminates double taxation if Sweden wants to tax the income for the work you perform in Sweden.
I am moving alone from Sweden to Åland. I will keep my job in Sweden and work 100 percent remotely after the move.
Where do I pay taxes?If you mainly work in Finland, your income will be taxed in Finland.
I have moved from Helsinki to Åland. I am keeping my job in Helsinki and will be working 100 percent remotely after the move.
Does the move affect my income taxation?No, the same laws apply throughout Finland regardless of where you live. You pay the same tax as before.
It also makes no difference whether you previously worked on-site at the office in Helsinki or whether you were already working 100 percent remotely before moving to Åland.
After moving to Åland, however, you will pay tax in accordance with the Åland municipal tax law, which you can read more about above on this page.