Banks & Finances Finland

In Finland, several banks offer services tailored to the needs of foreigners. Below are banks that are most loyal to foreign clients:

 

Nordea Bank: One of the largest banks in Finland, providing a wide range of services for foreign clients; offers the possibility of opening an account and accessing banking services online; provides online banking and access codes that can be used to log into other services such as government online services.

 

OP Financial Group: A major financial group offering services for foreign citizens; foreigners can activate banking services at OP online; if you are not a citizen of the European Economic Area but already have an account and user identifiers with another Finnish bank, it is recommended to schedule an appointment.

 

S-Bank: Offers a free bank account for members of the S Group cooperative; the account can be linked to an S-Etukortti Visa card, which allows cash withdrawals and online purchases; provides online banking and a mobile app available in English.

 

Danske Bank: Offers online meetings with specialists, electronic signatures, and constantly evolving mobile services, allowing clients to manage banking remotely; provides flexible mortgages and helps choose appropriate savings and investment methods.

 

Recommendations when choosing a bank

Schedule an appointment. Many banks require an appointment to open an account, especially if you are not a citizen of the EEA.

 

Note that Finnish law requires banks to provide basic banking services to all foreign citizens with a Finnish residence permit. Basic services include opening an account, a debit card, and access to internet banking.

Opening a bank account in Finland is an important step for immigrants, allowing them to manage finances and access various services. The procedure may vary slightly, but the general requirements remain similar:

 

Valid identification document:

- Passport issued by your country.

- Identification card issued by a country in the European Economic Area, Switzerland, or San Marino.

 

Right to reside in Finland

For non-EU citizens: a valid residence permit or confirmation of the application submission.

For EU citizens: registration of the right to reside in Finland.

 

Finnish personal identification number:

This number is assigned upon registration in the Finnish Population Information System. Having it significantly simplifies the account opening process and the use of banking services.

 

Additional recommendations

 

Proof of residence address: If you do not yet have a Finnish personal identification number, you may need to provide a document confirming your address in Finland, such as a utility bill.

Language support: Most banks serve clients in Finnish, Swedish, and English. If you do not speak these languages, it is recommended to come with a translator.

Main ATM networks in Finland

 

Otto.: the largest ATM network, accepting Visa, MasterCard, Maestro, Cirrus, American Express, Diners Club, and Visa Electron cards; ATMs operate around the clock and are widely available throughout the country.

 

Nosto: an ATM network also accepting various international cards.

 

Cash withdrawal procedure

- Insert the card into the ATM and select your preferred language interface.

- Enter your card's PIN.

- Choose the amount to withdraw. Note that ATMs may have limits on the maximum amount per transaction.

- Confirm the transaction and wait for the cash and receipt.

 

Fees and charges

Bank fees: Many banks charge a fee for cash withdrawals abroad, which may be a fixed amount or a percentage of the withdrawn sum.

ATM fees: Some ATMs may charge an additional fee for usage. Information about such fees is usually displayed on the screen before confirming the transaction.

 

Recommendations

Avoid dynamic currency conversion: When withdrawing cash, choose the option to charge in the local currency (euro) to avoid additional conversion costs.

Plan large withdrawals: Withdrawing larger amounts in one transaction can be more beneficial as fixed fees will be charged less frequently.

Check limits: Inquire with your bank about daily and monthly withdrawal limits when abroad.

Below are the main methods of international money transfers:

 

Bank transfers (SWIFT)

Finnish banks offer international transfer services through the SWIFT system. The following recipient details are required to make a transfer:

- Name and address.

- Account number or IBAN.

- SWIFT/BIC code of the recipient's bank.

 

Online money transfer services

There are specialized online platforms offering faster and more economical transfers:

Wise: Offers transfers at the real exchange rate with transparent fees. Transfers usually take from a few minutes to 1-2 days.

Paysend: A fixed transfer fee and the ability to send funds to bank cards in more than 170 countries. Transfers are often completed within minutes.

Revolut: A mobile app that allows international transfers with minimal fees. Transfers between Revolut users are typically instant.

 

Money transfer systems

Companies like Western Union and MoneyGram allow you to send money in cash or to bank accounts:

Western Union: A wide network of service points and online transfer capabilities. Fees depend on the amount and destination country.

MoneyGram: Offers cash and bank account transfers. Delivery time and fees vary depending on the direction.

 

Recommendations when choosing a transfer method

 

Compare fees and exchange rates: Different services offer various conditions, so it is recommended to compare them before sending.

Consider transfer speed: If the money is urgently needed, choose services with instant or quick delivery.

Check availability in the recipient's country: Ensure that the chosen service operates in the destination country and offers convenient ways to receive funds.

Foreign citizens in Finland can obtain a loan or mortgage; however, the conditions and requirements may differ from those for citizens of the country.

 

Mortgage lending for foreigners

Foreigners have the opportunity to obtain a mortgage in Finland, but banks impose stricter requirements:

Residence permit: Having a permanent residence permit or a long-term valid temporary residence permit increases the chances of mortgage approval.

Stable income: Banks require proof of stable income in Finland. The longer you work in the country, the higher the likelihood of getting a loan.

Down payment: For foreigners, the down payment usually ranges from 25–50% of the property value.

Loan term: The maximum mortgage term for non-residents rarely exceeds 20 years.

Interest rate: For foreigners, interest rates can be higher, ranging from 4–8% per annum.

 

Consumer loans for foreigners

Foreign citizens can obtain a consumer loan in Finland if the following conditions are met:

Age: The minimum age of the borrower is 20 years.

Registration: Having a registered permanent address in Finland and a Finnish personal identification number.

Income: A permanent annual income of at least 12,000 € gross.

Credit history: No negative credit history in Finland.

 

Recommendations for foreigners

Consult with financial advisors: Specialists will help choose optimal conditions and prepare the necessary documents.

In Finland, preference is given to cashless payments, especially for large purchases. While cash may be accepted in some cases, it is more of an exception requiring additional arrangements. Cashless methods are the standard, ensuring the safety and transparency of transactions.

 

For security and transparency, payments for real estate are made by bank transfer through Finnish banks. This is the standard practice for both private sellers and agencies.

 

Car payments are also most often conducted via bank transfer or payment terminals. Some dealers may accept cash, but generally, the amount must be pre-agreed. If you plan to pay for a car in cash, you may need documents verifying the legal origin of the money.

 

Use of Cash

Finland actively promotes cashless payment methods, so cash is virtually not used for large transactions. There are no legal restrictions on the amount of cash transactions, but sellers have the right to refuse cash payments. The tax authorities of Finland closely monitor large cash transactions to prevent tax evasion or money laundering.

Finnish banks often set limits on cash withdrawals. If you plan to use cash, ensure that your bank allows you to withdraw the required amount and arrange this in advance.

 

Recommendations

If you find it more convenient to use cash:

Discuss it with the seller in advance. Many simply won't accept cash, especially for large amounts.

Ensure that you have documentation verifying the source of the money. This is especially important if the amount exceeds the financial monitoring threshold.

Be aware of the risks. Cash can be lost or stolen, and it is more challenging to track documentarily.

In Finland, various saving and investment options are available to efficiently manage personal finances.

 

Savings Accounts

 

Regular savings accounts: Designed for storing funds with the ability to add and withdraw at any time. Interest rates on such accounts are usually low.

Term deposits: Involve placing funds for a fixed term with a predetermined interest rate. The minimum deposit amount is 500 euros, and the deposit term can start from one month.

 

Investment Funds

 

Mutual funds: Pool investors' funds to invest in various assets such as stocks, bonds, and other instruments. Funds are managed by professional managers, reducing risks for investors.

Index funds: Follow a specific market index, providing diversification and typically lower fees compared to actively managed funds.

 

Stocks

Direct stock investment: Allows you to acquire shares in companies and potentially profit from the rise in their value and dividends. To trade stocks, you need to open a brokerage account or use investment platforms.

 

Equity savings account: A special account allowing you to invest in shares with tax benefits. The maximum deposit amount is 100,000 euros, and profit taxation occurs only upon fund withdrawal.

 

Insurance Investment Products

Insurance linked with investments: Combines insurance protection with the opportunity to invest in various funds. Suitable for long-term savings and can be tailored to individual needs.

 

Monthly Savings

Regular investments: Allow you to automatically invest a fixed amount each month, promoting discipline and taking advantage of the compounding effect. The minimum amount for monthly investments can be as little as 10 euros.

 

Recommendations

Consult financial specialists: Professional advice helps optimize an investment portfolio and achieve goals.

In Finland, the tax obligations of foreign citizens depend on their residency status and the duration of their stay in the country.

 

Determining tax residency:

 

Residents: Individuals living in Finland for more than six months (183 days) in a calendar year are considered tax residents. They are required to pay taxes on their global income, regardless of the country of its origin.

 

Non-residents: Individuals staying in Finland for less than six months are considered tax non-residents. They are taxed only on income derived from Finnish sources.

 

Income Taxation

 

Salaries:

Residents: Subject to progressive income tax, the rate of which depends on the amount of income. Municipal taxes and compulsory insurance contributions are also collected.

Non-residents: Subject to a fixed tax of 35%. In some cases, it is possible to apply for progressive taxation.

 

Capital Income: Interest, dividends, and capital gains are taxed at 30% for income up to 30,000 euros and 34% for income exceeding this amount.

 

Tax Deductions and Benefits

Residents are entitled to various tax deductions, such as expenses related to earning income, union membership fees, and commuting expenses between home and work. Non-residents generally are not entitled to these deductions.

 

Double Taxation Avoidance Agreements

Finland has entered into agreements with several countries to prevent double taxation. These agreements determine in which country certain types of income are taxed and allow for the avoidance of double taxation.

 

Taxpayer Obligations

Registration with Tax Authorities: Foreign nationals starting work in Finland must obtain a Finnish personal identification number and tax card.

 

Filing Tax Returns: Residents are obligated to file an annual tax return, declaring all income received. Non-residents file a return only in certain cases.

 

It is recommended to consult with tax specialists to ensure compliance with all requirements.

In Finland, the tax filing process for foreign nationals depends on their residency status (tax resident/tax non-resident) and income sources.

 

Tax Filing Process

 

Receiving a Pre-completed Tax Return

In March-April, the Finnish Tax Administration sends all taxpayers pre-completed tax returns containing information on income and tax deductions for the previous year.

 

Checking and Correcting Data

Carefully check the received return. If the data is correct and requires no changes, no further action is necessary.

If corrections or additions need to be made, this can be done via the OmaVero online service or using the appropriate paper forms.

 

Submission Deadlines: The deadlines for submitting corrections are indicated in your tax return and usually fall in May. It is important to comply with these deadlines to avoid possible fines.

 

Notification of Tax Amount Due: After processing the return, you will receive a notification of the tax amount due, indicating the final amounts payable or refundable.

 

Features for Non-residents

Declaring: Non-residents are required to file a tax return if they have received income subject to progressive taxation or if they wish to claim tax deductions.

 

Recommendations

Registration in the OmaVero System: This online service allows managing tax affairs, making corrections to the return, and receiving notifications.

Document Retention: Keep all documents confirming your income and expenses in case of possible audits.

Consultation with Tax Specialists: If you have questions or difficulties, it is recommended to contact professionals for qualified assistance.

Registration and Legal Status

 

Individual Entrepreneur: Self-employed individuals can register as sole proprietors. This is the most common form for freelancers, allowing them to operate under their own name without creating a legal entity.

 

Freelancer without Registration: In some cases, it is possible to work without official registration, receiving compensation for the work performed. However, in this case, labor laws do not apply to the contractor, and they are responsible for paying taxes and social contributions independently.

 

Taxation

 

Tax Registration: Self-employed individuals are required to register with the Finnish Tax Administration and obtain a tax card.

Income Tax: Income of self-employed individuals is taxed at a progressive rate. The amount of tax depends on the total annual income.

Value Added Tax: If the annual turnover exceeds 15,000 euros, the self-employed individual is required to register as a VAT payer and collect tax on the services or goods provided.

 

Social Security

 

Pension Insurance: Self-employed individuals must arrange pension insurance for entrepreneurs if their estimated annual income exceeds a set threshold (in 2024 — 8,575.45 euros). The premium amount depends on the declared income and affects future pension payments.

Accident Insurance: Arranging accident insurance is not mandatory for the self-employed, but it is strongly recommended to ensure protection in case of injuries or illnesses related to professional activities.

 

Benefits and Support

 

Start-Up Allowances: New entrepreneurs can apply for a start-up allowance, which provides financial support during the initial period of activity. The allowance is paid for 6 months with the possibility of extension up to 12 months.

Consultative Services: Organizations such as the Centres for Economic Development, Transport, and the Environment offer free consultations on entrepreneurship, taxation, and business planning issues.

 

Recommendations

Keeping Records: It is recommended to maintain detailed records of income and expenses for accurate calculation of taxes and contributions.

Consultations with Professionals: Consulting accountants or tax advisors can help avoid mistakes and optimize tax liabilities.