Finland offers a special tax regime designed to attract highly skilled professionals from abroad. Known as the Key Person Tax Scheme, it provides a simplified and reduced tax rate for qualified foreign workers moving to Finland for work.

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What is the Key Person Tax Scheme?

It allows certain international professionals working in Finland to pay a flat tax rate on their salary instead of the standard progressive income tax system. This makes taxation simpler and often more favourable for highly paid specialists.

From 1 January 2026, the tax rate under this scheme will be 25%, down from 32%.

The tax is withheld directly from the employee’s salary by the employer and it is generally considered final taxation, meaning the employee usually does not need to file a Finnish tax return for that income.

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Who qualifies as a Key Person?

To qualify for the scheme, employees must meet several conditions:

• Become a tax resident in Finland when starting work
• Earn at least €5,800 per month in salary
• Work in a role requiring special expertise
• Not have been a tax resident in Finland during the previous five years
• Perform most of their work in Finland

There are some exceptions. For example, teachers and researchers at universities may qualify even if they do not meet the salary requirement.

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How long does the tax benefit last?

The special tax treatment can apply for a maximum of 84 months (seven years). However, Finnish citizens returning to Finland may receive the benefit for up to 60 months.

This extended timeframe was introduced to make Finland more attractive for international talent.

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How to apply

Employees must apply for a Key Person Tax-at-Source Card from the Finnish Tax Administration.

Key points about the application:

• The application must be submitted within 90 days of starting work in Finland
• The tax card confirms eligibility and the applicable tax rate
• The employee must give their tax card to their employer so the correct tax can be withheld

If the employee changes employers, they will require a new tax card.

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Benefits of the Scheme

The key advantages include:

• Lower flat tax rate (25%)
• Simplified taxation process
• Predictable income after tax
• Attracting global talent to Finland

Since Finland’s normal progressive tax rates can exceed 50% for high earners, the scheme can result in substantial tax savings for eligible professionals.

Liberty Bishop International supports our eligible temporary employees by helping them with the Key Person Tax application process, ensuring that it is applied successfully to their monthly salary in Finland.