Finland Individual Tax Guide

Worldwide Personal Tax and Immigration Guide 2021–22

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Helsinki

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EY Alvar Aallon katu 5 C 00100 Helsinki Finland Executive and immigration contacts Mikko Nikunen

Tuomas Anttila

+358 (20) 728-0190 Fax: +358 (20) 728-0199 Email: mikko.nikunen@fi.ey.com +358 (20) 728-0190 Fax: +358 (20) 728-0199 Email: tuomas.anttila@fi.ey.com

A. Income tax Who is liable. Individuals resident in Finland are taxed on their

worldwide income. However, salary earned abroad is exempt from tax in Finland if a Finnish resident works abroad continuously for at least six months and satisfies certain other requirements. Non­ resident individuals are subject to income tax on income from Finnish sources only.

Domestic law treats an individual as resident if his or her permanent home is in Finland or if he or she stays in Finland a continuous period of more than six months. The stay in Finland may be regarded as continuous even in the event of temporary absences from the country.

In the case of emigration, foreign citizens become nonresidents for Finnish tax purposes at the time they leave the country and surrender their permanent home in Finland. With respect to a Finnish citizen, he or she is still considered to be resident in Finland until three years have passed from the end of the year when the individual left the country, unless he or she can establish that no essential connections with Finland have been maintained.

Income subject to tax. The taxation of various types of income is

described below.

Employment income. Taxable income is calculated separately for earned income and capital income (see Capital gains and losses).

Business income is divided between earned and capital income (see Self-employment and business income).

Earned income is subject to national income tax, municipal income tax, church tax and Public Broadcasting (Yleisradio, or YLE) tax. With the exception of YLE tax that is due on gross income, taxable earned income is generally computed in the same manner for each of these taxes, although the deductions and credits allowed for each tax differ slightly.

Earned income consists of salaries, wages, directors’ fees and ben­ efits in kind. Fringe benefits, including a company car, housing

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and lunch benefit, are taxed on values set forth in an official table that are lower than the actual costs incurred. Scholarships from private institutions are exempt in certain circumstances, up to approximately EUR23,600 (2021 tax year).

Under a special expatriate tax regime, qualifying expatriates may elect to be taxed on their salary income at a rate of 32% for a period of up to 48 months, instead of at the normal progressive income tax rates.

Self-employment and business income. Self-employment income of residents is considered to be business income. Taxable business in­come is apportioned between capital income and earned in­come. The amount of capital income is generally determined using a 10% or 20% rate of return on investment and is taxed at the 30% or 34% rate applicable to capital income (see Capital gains and losses). The remainder of taxable business income is taxed as earned income according to the progressive income tax scale (see Rates).

Taxable business income consists of profits shown in the statutory accounts required for self-employed individuals. Accounting profit and taxable profit are, in principle, the same, although the tax law prescribes a number of adjustments.

Investment income. For Finnish individuals, the taxation of dividend income depends on several factors. If the distributing company is a listed company that is resident in a country with which Finland has entered into a tax treaty and if certain other requirements are met, 85% of the dividend is taxable capital income. The remaining 15% is exempt from tax. Dividends from unlisted companies may be exempt from tax, taxed as capital income and/ or taxed as earned income (similar to salary), depending on, for example, the net assets and the country of residence of the distributing company.

For residents, interest income on bank deposits and bonds is subject to a 30% final withholding tax. Certain government bonds are exempt from this tax.

In 2021, 10% of the interest on mortgages and 100% of interest on loans related to the deriving of taxable income are deductible from capital income. In general, 30% of the excess of deductible interest expense over capital income is deductible from income taxes on earned income. How­ ever, this credit is limited to EUR1,400 for a single person and EUR2,800 for a couple. The maximum amount deductible is increas­ed by EUR400 for one child and by EUR800 for two or more children.

For nonresidents, dividends and royalties paid from Finland are generally subject to a 30% final withholding tax, unless a tax treaty provides otherwise. In most cases, interest paid to nonresidents is tax exempt.

Taxation of employer-provided stock options. Stock options pro-

vided by an employer are not taxed at the time of grant. At the date of exercise, the difference between the fair market value of the underlying stock and the exercise price of the option is treated as taxable employment income. Employee social security contributions are generally not payable on the benefits except for the

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Medicare contribution of 1.65% (in 2021). Similarly, stock options are not usually subject to employer’s social security contributions.

The base for the employee contribution is generally the taxable amount.

Any gain derived from the subsequent sale of the stock is taxed as a capital gain under the rules described in Capital gains and losses.

Capital gains and losses. Capital gains on property are taxed as capital income at a rate of 30%. If the capital income received during a calendar year exceeds EUR30,000, the excess income is taxed at a rate of 34%. A taxable capital gain is computed by deducting from the disposal proceeds the greater of the acquisition cost plus the sales cost, or 20% of the proceeds (40% for property owned for at least 10 years before disposal). The acquisition cost used for property received by gift or inheritance is generally the value used for purposes of the gift and in­heritance tax (see Other taxes). However, certain exceptions may apply.

A capital gain resulting from the sale of an apartment or house that the seller used as a primary residence for at least two years on a continuous basis during the time of ownership is exempt from tax.

Also, capital gains may be exempt from tax if the total sales price of all assets sold during the tax year (excluding, for example, the sales price of one’s primary residence) does not exceed EUR1,000.

Capital losses are deductible from all capital income in the year of the loss or in the five following years. However, capital losses are not deductible if the acquisition costs of all assets sold during the tax year do not exceed EUR1,000.

Deductions

Deductible expenses. In general, a taxpayer may deduct all expenses directly incurred in generating or maintaining taxable income.

However, separate deductions apply for earned income and capital income. See Investment income for deductions applicable to capital income.

The following are the primary deductions applicable to earned income: • Travel expenses that exceed EUR750 incurred between home and office, up to a maximum of EUR7,000 • Payments to labor unions • Standard deduction from salary income, up to a maximum of EUR750 • Expenses incurred in connection with earning income, to the extent they exceed EUR750 • Employee contributions for health insurance per diem, unemployment insurance and pension Contributions paid by individuals to voluntary pension insurance are generally deductible for tax purposes up to certain maximum limits from capital income.

Business deductions. Expenses incurred to create or maintain business income are generally deductible. Exceptions apply, for example, to salaries paid to entrepreneurs, their spouses and their children under 14 years of age who work for their business.

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Interest expenses relating to business or farming activities are generally deductible for business or farming income purposes in determining taxable income from these activities.

Rates. Income tax consists of national tax, municipal tax, church tax (payable if the individual is a member of certain Finnish congregations) and YLE tax.

National income tax. For 2021, national income tax is imposed on individual residents at the following progressive rates.

Taxable income Exceeding Not exceeding EUR EUR

0 18,600 27,900 45,900 80,500

18,600 27,900 45,900 80,500 —

Tax on lower amount EUR

0 8 566 3,671 11,023,50

Rate on excess %

0 6 17.25 21.25 31.25

Municipal tax. For 2021, municipal tax is levied at a flat rate that ranges from 17% to 23.5% of taxable income, depending on the municipality.

Church tax. For 2021, church tax is payable by members of certain Finnish congregations at rates ranging from 1% to 2.2%.

YLE tax. For 2021, YLE tax of 2.5% is levied on annual income exceeding EUR14,000. YLE tax is capped at a maximum of EUR163 per year.

Nonresidents. Nonresidents’ Finnish-source pension income is taxed in a similar manner to pension income received by residents; that is, they are subject to tax at the progressive rates.

Salaries, including directors’ fees received by nonresidents, are subject to final withholding tax at a rate of 35%, unless a tax treaty provides otherwise. Nonresidents may deduct EUR510 per month (or EUR17 per day) from salary. This standard deduction may be claimed only if a Finnish tax at source card has been applied. The deduction does not apply to the directors’ fees.

Nonresidents from tax treaty countries can alternatively apply for progressive taxation in which case their Finnish-source salaries are taxed broadly similarly to the salaries received by residents.

Remuneration paid to a nonresident artist or athlete for a personal performance is subject to withholding tax at a rate of 15%, unless a tax treaty provides otherwise. If artists and athletes are subject to the 15% tax, they may not claim the standard deduction of EUR510. However, nonresident artists and athletes from other European Union (EU)/European Economic Area (EEA) countries can apply for progressive taxation.

Relief for losses. A business loss is deductible from capital in­come.

Any excess loss from a business may be carried forward for 10 years and offset against business income. Any loss from earned income may be carried forward for 10 years and offset against in­come from the same category.

B. Other taxes Wealth tax. Finland does not impose wealth tax.

F i n l a n d 453 Inheritance and gift taxes. Inheritance and gift taxes are levied on inheritances, testamentary dispositions and gifts. All property owned by a person resident in Finland or received by a person resident in Finland is taxable. If both the owner and recipient are nonresidents, the tax applies only to real property located in Finland and to shares in a corporate body in which more than 50% of the assets consists of Finnish real property. A tax credit is allowed for estate or gift tax paid abroad on the same inheritance or gift if the recipient is resident in Finland at the time of the taxable event.

Beneficiaries are divided into the following two categories: • Spouses, children, spouses’ children and grandchildren, grandchildren, parents and grandparents (first category) • Other related and unrelated individuals (second category) Inheritance tax is imposed in the first category at the following rates for 2021.

Taxable amount Exceeding Not exceeding EUR EUR

0 20,000 40,000 60,000 200,000 1,000,000

20,000 40,000 60,000 200,000 1,000,000 —

Tax on lower amount EUR

0 100 1,500 3,500 21,700 149,700

Rate on excess %

0 7 10 13 16 19

The following are inheritance tax rates for the second category.

Taxable income Exceeding Not exceeding EUR EUR

0 20,000 40,000 60,000 200,000 1,000,000

20,000 40,000 60,000 200,000 1,000,000 —

Tax on lower amount EUR

0 100 3,900 8,900 49,500 297,500

Rate on excess %

0 19 25 29 31 33

For 2021, the following deductions may be applied against the taxable share for inheritance taxation: • Widow/widower deduction of EUR90,000 • Minor deduction of EUR60,000 (applies to direct heirs under 18 years old) For 2021, gift tax is imposed in the first category above at the following rates.

Taxable amount Exceeding Not exceeding EUR EUR

0 5,000 25,000 55,000 200,000 1,000,000

5,000 25,000 55,000 200,000 1,000,000 —

Tax on lower amount EUR

0 100 1,700 4,700 22,100 142,100

Rate on excess %

0 8 10 12 15 17

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The following are the gift tax rates for the second category.

Taxable amount Exceeding Not exceeding EUR EUR

0 5,000 25,000 55,000 200,000 1,000,000

5,000 25,000 55,000 200,000 1,000,000 —

Tax on lower amount EUR

0 100 3,900 11,400 53,450 301,450

Rate on excess %

0 19 25 29 31 33

Inheritance and gifts from one person to the same beneficiary during a three-year period are aggregated to determine the amount of the tax due.

Finland has entered into an inheritance and gift tax treaty with Denmark and Iceland, and inheritance tax treaties with France, the Netherlands, Switzerland and the United States.

C. Social security The social security contributions are imposed on employers, employees and self-employed individuals. For employees in 2021, the social security contributions consist of a Medicare contribution and a per diem contribution. The per diem contribution is 1.36% of gross salary income (excluding certain items, such as most employee stock option and share award benefits), and the Medicare contribution is 0.68% of municipal taxable income. Furthermore, the Medicare contribution is due at 1.65% on the difference between taxable municipal income and the per diem contribution basis; that is, most salary income and other earned income that is not subject to the per diem contribution is ultimately subject to the Medicare contribution at the same rate.

In addition, a 7.15% compulsory pension insurance premium and a 1.4% unemployment insurance premium apply to gross salary income (excluding certain items, such as most employee stock option and share award benefits). The compulsory pension insurance premium is 8.65% for employees who are more than 52 years but less than 63 years old.

For employers, social security contributions are levied as a percentage of uncapped gross wages and salaries (excluding certain items, such as most employee stock option and share award benefits). The average total percentage of all contributions for private-sector employers goes up to 21.15%, which consists of 1.53% for employer’s sickness insurance contributions, 0.07% for group life insurance premiums, pension premiums that average 16.95%, 0.7% for average accident insurance premiums and 0.5% for unemployment insurance premiums (1.9% for salaries exceeding EUR2,169,500).

For self-employed individuals insured under the Entrepreneur Pension Act, in 2021, social security contributions consist of a Medicare contribution and a per diem contribution as with employees. However, compared to employees, the per diem contribution is 1.55% of the annual pensionable amount agreed to between the employer and his or her pension insurance institution. In addition, entrepreneur pension insurance contributions are due on the annual pensionable salary at a rate of 24.1%

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(25.6% for individuals who are more than 52 years but less than 63 years old; the corresponding rates for starting entrepreneurs are 18.8% and 19.2%, respectively). Self-employed individuals insured under the Entrepreneur Pension Act do not have to obtain compulsory unemployment, accident or group life insurance coverage.

The EU social security regulations apply to cross-border situations with other EU countries, with EEA countries (Iceland, Lichtenstein and Norway) and with Switzerland.

Finland has also entered into bilateral totalization agreements with Australia, Canada, Chile, China Mainland, India, Israel, Korea (South), Quebec and the United States. The material scope of the bilateral totalization agreements varies.

For assignments to Finland from a country other than an EU/EEA country, Switzerland or a totalization agreement country, employees working in Finland for foreign employers are generally exempt from the pension insurance contributions for the initial two years of an assignment. Employees can apply for a prolonged exemption.

D. Tax filing and payment procedures The tax year in Finland is the calendar year. Married persons are taxed separately on all types of income. Pre-filled tax returns are sent to all individuals in April of the year following the tax year.

The individuals must review the pre-filled tax return and submit any corrections to the tax authorities within the specified time limit.

The final tax is assessed individually for each taxpayer, depending, for example, on whether there have been changes in the individual’s pre-filled tax return and possibly on whether the individual’s spouse has made changes to his or her pre-filled tax return. The final tax should be assessed at the latest by the end of October. To reduce or eliminate the amount of the residual tax and interest, the taxpayer can apply for additional prepayments.

Residual tax due dates are individual for every taxpayer. The due dates are between August of the year following the tax year and February of the following year. Refunds of overpayments are made between August and December of the year following the tax year.

An employer must withhold tax from an employee’s salary for national, municipal and church tax purposes. In addition, an employer must withhold social security contributions (see Section C). Self-employed individuals must make monthly advance tax payments, which are calculated and levied separately by the tax authorities.

Self-employed individuals receive their pre-filled tax returns in March of the year following the tax year, and they must submit their corrections to the tax authorities within the specified time limit. The tax authorities assess final tax individually for each taxpayer, at the latest by the end of October of the year following the tax year.

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Nonresidents who are subject only to final withholding taxes do not need to file tax returns. However, if the nonresidents want to apply for progressive taxation, they must file a tax return (see Section A). Nonresidents must generally declare all of their income from immovable property located in Finland (including shares in Finnish residential housing companies and real estate companies).

E. Double tax relief and tax treaties Most of Finland’s treaties are based on the Organisation for Eco­ nomic Co-operation and Development (OECD) model. Most tax treaties eliminate double taxation using the credit method, but some use the exemption method. If no treaty is in force, Finnish law provides, under certain conditions, relief for foreign taxes paid, but only for purposes of national income taxes.

Finland has entered into double tax treaties with the following jurisdictions.

Argentina Armenia Aruba (a) Australia Austria Azerbaijan Barbados Belarus Belgium Bermuda (a) Botswana (a) Brazil British Virgin Islands (a) Brunei Darussalam (a) Bulgaria Canada Cayman Islands (a) China Mainland Costa Rica (a) Cyprus Czech Republic Denmark Egypt Estonia France Georgia Germany Greece

Guernsey (a) Hong Kong Hungary Iceland India Indonesia Ireland Isle of Man (a) Israel Italy Jamaica (a) Japan Jersey (a) Kazakhstan Korea (South) Kyrgyzstan Latvia Lithuania Luxembourg Malaysia Malta Mexico Moldova Morocco Netherlands Netherlands Antilles (a) New Zealand Niue (a) North Macedonia Norway

Pakistan Panama (a) Philippines Poland Romania Russian Federation Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Sweden Switzerland Tajikistan Tanzania Thailand Turkey Turkmenistan Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vietnam Yugoslavia (b) Zambia

(a) This is a convention on exchanging information and a concise tax treaty. (b) Finland applies the Yugoslavia treaty with respect to Bosnia and Herzegovina, Croatia, Montenegro and Serbia.

F. Temporary visas EU, EEA and Swiss nationals. EU/EEA/Swiss nationals are free to stay and work in Finland for up to three months. After the

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three-month period, an EU/EEA/Swiss national must register his or her residence online in the Enter Finland portal and attend a personal appointment at the Finnish Immigration Service service point in Finland. Nationals of the Nordic countries (Denmark, Iceland, Norway and Sweden) are exempt from the registration obligation applicable to other EU/EEA nationals, but they should register their presence in the local register office within one week after moving to Finland, if the stay exceeds six months.

Non-EU, non-EEA and non-Swiss nationals. Non-EU/non-EEA/ non-Swiss nationals usually need a Schengen visa to enter Finland. However, under the Schengen treaty, nationals of approximately 50 countries do not need a Schengen visa to enter and stay in the Schengen zone for a combined maximum period of 90 days in a rolling 180-day period if they have a valid passport or other travel document accepted by the state of Finland, as well as sufficient funds for living, sufficient travel insurance coverage and a return journey.

The Schengen zone consists of the following countries.

Austria Belgium Czech Republic Denmark Estonia Finland France Germany Greece

Hungary Iceland Italy Latvia Liechtenstein Lithuania Luxembourg Malta Netherlands

Norway Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland

G. Residence permits Under the Aliens Act, an individual wishing to reside in Finland usually needs a residence permit. Exceptions to this requirement may be granted based either on the employee’s nationality, length of stay or certain type of work performed in Finland.

Nordic country nationals. Nationals from other Nordic countries do not need residence permits. If they want to take up residence in Finland, they must register with the population register at the local registry office. Under the Nordic convention, Nordic citizens need only register if their stay in Finland exceed six months.

EU, EEA and Swiss nationals. EU/EEA/Swiss nationals do not need residence permits. However, EU/EEA/Swiss nationals who stay in Finland continuously for longer than three months must register their right of residence in the Enter Finland online portal and attend a personal appointment at the Finnish Immigration Service service point.

Non-EU, non-EEA and non-Swiss nationals. A non-EU/non-EEA/

non-Swiss national must apply for a residence permit at the Finnish embassy or consulate in the country where he or she was last domiciled, or in his or her country of citizenship. A renewal application should be submitted in Finland at the Finnish Immigration Service service point. After a person has stayed in Finland for at least four years with a continuous residence permit (A-type), he or she may apply for a permanent residence permit.

458 F i n l a n d Residence permit for employment. Non-EU/non-EEA/non-Swiss

nationals usually need a residence permit in order to work in Finland. There are various categories available depending on the type of work.

Typically, a residence permit for an employed person is needed.

The application for a residence permit for an employed person is processed in two stages. First, an Employment and Economic Development Office assesses whether the individual has sufficient means of support, whether the work will be temporary or continuous, and whether a labor force is available within a reasonable time in Finland or within the EU/EEA for the work in question. Secondly, following the first stage, the Finnish Immigration Service makes its decision.

If an employee works, for example, in the middle or top management of the company, or as a specialist (highly skilled worker), a visiting consultant or a teacher, the employment office’s opinion is not required.

Intra-corporate transfers (ICTs) of individuals within a company or group of companies who come to Finland to work as a manager, specialist or trainee may apply for a residence permit based on ICT. Employees holding a residence permit on the basis of ICT issued by another EU country may work in Finland for no more than 90 days within a 180-day period. In this case, the host entity in Finland must submit a mobility notification to the Finnish Immigration Service before entry to Finland. If their work in Finland exceeds 90 days, they must apply for a residence permit for long-term mobility (Mobile ICT). In the case of ICT and Mobile ICT residence permits, the employment office’s opinion is not required.

Entrepreneurs. Private entrepreneurs who are non-EU/non-EEA/ non-Swiss nationals and who wish to come to Finland as entrepreneurs must apply for an entrepreneur’s residence permit.

Before a permit can be issued, entrepreneurs usually need to enter their business in the Trade Register maintained by the Finnish Patent and Registration Office. An individual cannot get an entrepreneur’s residence permit only because he or she owns a company; he or she must also work for the company in Finland. The application is processed in two stages. First, a Centre for Economic Development, Transport and the Environment (ELY Centre) assesses whether the individual meets the requirements in terms of profitability and whether his or her means of support is secured. After this stage, the Finnish Immigration Service processes the application.

If an individual intends to come to Finland to become an entrepreneur, he or she may apply for a startup entrepreneur residence permit. He or she must first obtain a positive Eligibility Statement from Business Finland before he or she can apply for this permit. A startup entrepreneur cannot get a residence permit without a positive statement from Business Finland.

Students. Students who are non-EU/non-EEA/non-Swiss nation-

als may need to obtain a residence permit to study in Finland. If the studies in Finland take longer than 90 days, a residence permit for studies is required. This residence permit is valid for two

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years, unless the individual applies for a shorter period. However, the residence permit is only valid for the duration of the studies if the studies take less than two years. If a residence permit is not applied for, the individual can study in Finland for a maximum of 90 days. Even if the stay in Finland is for less than 90 days, the individual may still need a visa.

If the individual has been granted a residence permit for studies by another EU member state other than Finland and if the individual is covered by a program or an agreement specified in the Finnish act on residence permits for students, he or she can come to Finland to carry out part of his or her studies for a period up to 360 days. In this case, a mobility notification must be submitted to the Finnish Immigration Service. If the individual is coming to Finland for postgraduate studies, he or she needs to apply for a residence permit for scientific research.

Accepted educational institutions include institutions that provide education after basic education, such as universities, universities of applied sciences and vocational education institutions.

The individual must have sufficient funds to pay for the tuition fees as well as sufficient means for living in Finland during the entire period of validity of the residence permit.

The residence permit for studies enables work without restrictions if the work is related to the degree. This means practical training and thesis work. For other jobs, the right to work is restricted to an average of 25 hours per week during the academic terms or work without restrictions at the times when the educational institution offers no instruction.

H. Family and personal considerations Family members. Family members of a residence permit holder,

including the spouse, the guardian of a child under 18 years of age and children under 18 years of age, may apply for residence permits on the basis of family ties. If an individual has been granted a residence permit on the basis of family ties, his or her right to work and study in Finland is not limited in any way.

Driver’s licenses. All driver’s licenses issued in states recognized

by Finland are valid for driving in mainland Finland. However, the foreign driver’s license is not valid for driving in Finland if the holder was permanently living in Finland when the license was issued.

A driver’s license issued in an EU or EEA member state is valid in Finland for all driving categories marked on the license within the period of its validity regardless of whether the holder is visiting Finland as a tourist or living in Finland permanently. A temporary driver’s license issued in the Nordic countries is also valid in Finland. If the holder is permanently living in Finland or has studied in Finland for at least six months, the holder may exchange or renew a driver’s license issued in an EU or EEA member state for a Finnish license or apply for a Finnish license in place of a lost, stolen or destroyed driver’s license issued in an EU or EEA member state. If the EU or EEA license has expired, the holder must enclose a medical certificate with the application. The holder will not need to pass a driving examination if the driver’s license is still valid or less than two years have passed

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since the expiration of a Group 1 license, or under a year has passed since the expiration of a Group 2 license.

A driver’s license issued in Hong Kong, Macau, Taiwan or a jurisdiction that has ratified the Geneva or Vienna Road Traffic Convention (hereinafter, Contracting States) is valid in Finland when visiting as a tourist until the license expires. It is also valid for two years after its holder moves permanently to Finland. The information in the Contracting State’s driver’s license must be written in a Latin alphabet or accompanied by a translation into Finnish or Swedish, by a reliable source, or an international driving license. If the holder has a permanent address in Finland and has a valid driver’s license issued by a Contracting State, the holder can exchange the license for an A1, A2, A or B Class driving license without passing the driving examination. However, the holder will need to pass the driving examination (theory and driving test) to obtain a license in the Group 2 and BE category.

To get an exchange without the driving examination, the holder must exchange the driver’s license within two years of having a permanent address in Finland and before the Contracting State license expires. If the driver’s license that the holder wishes to exchange has expired or the holder has been permanently living in Finland for over two years, the holder must also pass a driving examination (theory and driving test).

Driver’s licenses issued in other jurisdictions recognized by Finland are valid for driving categories A1, A2, A or B when visiting Finland as a tourist unless the license has expired.

Driver’s licenses are also valid for one year starting from the date the license holder is marked to the population register if it is not expired during that time. The information in the foreign driver’s license must be written in a Latin alphabet or accompanied by a translation into Finnish, Swedish, Norwegian, Danish, English, German or French by a reliable source. The driver must also fulfill the current age and health requirements in Finland. The holder must submit a driver’s license permit application for a foreign driver’s license at Ajovarma, prove that the holder fulfills the conditions for issuing the driver’s license permit and pass the driving examination (theory and driving test) to obtain a Finnish driver’s license.

If a driver’s license was issued in a state that is not recognized by Finland or if the holder of the permit was permanently living in Finland when they were granted a driving license by a nonrecognized state, the license cannot be accepted as a basis for passing the Finnish driving examination.