Inheritance and Estate Tax in Finland

Finland retains a beneficiary-side inheritance tax (perintovero) under the Perinto- ja lahjaverolaki (Inheritance and Gift Tax Act, 378/1940), distinguishing it from neighbouring Sweden, Austria, and Norway, all of which have abolished their inheritance taxes. The levy falls on each heir or legatee individually, computed on their own share of the estate, not the estate as a whole. Gift tax (lahjavero) operates on the same progressive scales, catching lifetime transfers that might otherwise sidestep the inheritance regime.

This page covers the framework as it stands for deaths and gifts occurring during 2025. Legislation enacted in late 2025 (HE 94/2025 vp) raises both thresholds to EUR 30,000 (inheritance) and EUR 7,500 (gifts) effective 1 January 2026 -- a change that does not affect 2025 events. Consult a qualified tax professional before structuring any transfer.

How does inheritance tax bracket assignment work?

Every beneficiary is assigned to one of two tax brackets based on their family relationship with the deceased, a system established under the Perinto- ja lahjaverolaki (378/1940) and administered by the Finnish Tax Administration (Verohallinto, vero.fi). Tax Class 1 (Veroluokka I) captures the closest relatives: the surviving spouse or registered partner, children and grandchildren (including adopted children), parents, grandparents, and step-children in qualifying relationships. All other relatives -- siblings, cousins, aunts, uncles -- and non-relatives fall into Tax Class 2 (Veroluokka II), which carries materially higher rates.

The brackets apply progressively on each heir's taxable share. For 2025, any individual share below EUR 20,000 triggers no liability; the first taxable euro above that floor enters the lowest bracket at 7% (Class 1) or 19% (Class 2). The maximum marginal rate is 19% (Class 1) or 33% (Class 2) on the portion exceeding EUR 1,000,000. These progressive brackets mean an heir receiving EUR 60,000 in Class 1 pays EUR 1,500 base tax plus 10% on the EUR 20,000 above the EUR 40,000 bracket floor -- a total of EUR 3,500, an effective rate of roughly 5.8%.

What are the 2025 inheritance tax rate tables?

The two tables below set out the exact rates confirmed by vero.fi for deaths occurring in 2025 (the EUR 20,000 floor applies throughout).

Spouse and minor-child deductions are applied to the heir's gross share before the table above is entered, potentially eliminating liability entirely where the share is modest.

What deductions reduce the taxable share?

The Perinto- ja lahjaverolaki provides two automatic personal deductions applied before the rate tables are entered. No separate application is required; Verohallinto calculates them from the estate inventory data.

The spouse deduction (puolisovahennys) allows a surviving spouse or registered partner to deduct EUR 90,000 from their inherited share. If the spouse's share is EUR 90,000 or less, the inheritance tax liability is zero. A surviving spouse inheriting EUR 200,000 enters the Class 1 table on only EUR 110,000 (EUR 200,000 minus EUR 90,000 minus the EUR 20,000 floor).

The minor-child deduction (alaikaisyysvahennys) of EUR 60,000 applies to any direct heir who has not yet turned 18 at the date of the decedent's death. As with the spouse deduction, this reduction is subtracted from the heir's gross share before applying the rate table. A child inheriting EUR 70,000 would have a taxable share of nil after deducting EUR 60,000 and the EUR 20,000 floor.

These two deductions are stackable with the EUR 20,000 floor but not with each other -- each heir receives only the deduction applicable to their own status. Reasonable funeral costs and estate-administration expenses are deductible from the gross estate before shares are computed, reducing every heir's portion proportionally.

How does gift tax work on the same progressive scales?

Finnish gift tax (lahjavero) applies to voluntary transfers made during the donor's lifetime once cumulative gifts from the same donor to the same recipient reach EUR 5,000 in any rolling 3-year period (calendar years 2025 and earlier). Gifts below this threshold in aggregate are free. The 3-year window is donor-by-recipient; gifts from different donors are assessed independently.

The class structure mirrors inheritance tax. Class 1 recipients (same close-relative definition) face rates of 8-17% on cumulative gifts above EUR 5,000; Class 2 recipients (siblings, cousins, non-relatives) face 19-33%. The gift tax return must be filed via OmaVero (MyTax) within 3 months of the date the gift was received. Verohallinto issues an assessment notice and payment deadline following the return.

Usual household goods, furniture, and personal effects transferred for the recipient's own use are exempt up to EUR 5,000. Transfers expressly made for education or upbringing without the recipient gaining free disposal of funds may also fall outside the taxable gift definition.

From 1 January 2026, the 3-year threshold rises to EUR 7,500 under the HE 94/2025 vp amendments -- gifts received from 2026 onwards are assessed under that higher floor.

What is the deemed acquisition cost step-up on inherited assets?

When an heir later sells an asset received through inheritance or gift, Finnish capital-gains law (Tuloverolaki, TVL 1535/1992, section 47) allows the heir to use the taxable value confirmed by Verohallinto for inheritance or gift tax purposes as the cost basis for capital-gains computation. This means the inherited-value step-up effectively resets the base for future gains, avoiding double taxation on appreciation that occurred during the deceased's ownership.

In addition, the hankintameno-olettama (deemed acquisition cost presumption, section 46 TVL) remains available: the heir may elect 20% of the disposal proceeds as deemed cost (or 40% if the heir's own holding period exceeds 10 years), whichever produces the smaller gain. The election is per-disposal and is generally more favourable for assets the heir holds for many years after receiving them. These two routes -- inherited fair-market value or the 20/40% presumption -- are compared and the more advantageous method is chosen at filing. Detailed interaction with capital-gains tax is covered in the separate Finland capital-gains crossover.

How does the estate inventory (perukirja) work and when must it be filed?

The Finnish estate inventory (perukirja) is a legally required document listing all assets and debts of the deceased as of the date of death. Under the Perintokaari (Inheritance Code, 40/1965), the estate inventory meeting (perunkirjoitus) must be held within 3 months of the death; Verohallinto may grant an extension on application where circumstances justify it. At the meeting, an estate declarant (typically the surviving spouse, adult child, or appointed executor) reads out the inventory in front of two impartial witnesses who attest to its accuracy.

The completed perukirja deed must then be filed with Verohallinto within 1 month of the meeting, meaning the outside deadline from death is ordinarily around 4 months. Filing is done via OmaVero. Verohallinto uses the deed to compute individual inheritance tax liabilities and issue assessment notices. If new assets or liabilities are discovered after the original filing, a supplementary inventory (perukirjan liite) must be prepared and submitted within 1 month of discovery.

Late filing carries penalties including a penalty fee and, in serious cases, personal liability exposure. Professional estate administrators (pesanhoitaja) and law firms routinely assist with the meeting and filing for larger or complex estates.

What business-succession relief is available for family companies?

Sections 55-57 of the Perinto- ja lahjaverolaki (378/1940) provide inheritance and gift tax relief for generational transfers of a family business. Where an heir or recipient receives shares or a business interest representing at least 10% of the company's total capital, the company carries on qualifying business activity (aktiivinen liiketoiminta -- trading or productive activity, not passive investment holding), and the recipient continues to carry on the business after the transfer, the tax owed on the business-asset component is reduced by 40%. If the conditions are met on the entire share, the heir or donee may obtain full waiver of the inheritance or gift tax attributable to the business component.

The relief is claimed in the inheritance tax return or gift tax return filed via OmaVero. Verohallinto then determines the qualifying portion of the estate value and applies the reduction. The heir must not dispose of the qualifying shares within 5 years of receiving them; early disposal triggers recapture of the waived tax with interest.

The 10% shareholding minimum and the business-activity definition have generated significant case-law uncertainty, particularly for family holding companies where investment returns form a meaningful share of total income. Legislation enacted in late 2025 (HE 94/2025 vp) is expected to reduce the minimum threshold to 1% and relax the post-transfer continuity requirement for future transfers, but the 10% threshold remains in force for events occurring in 2025. Qualified practitioners specialising in Finnish sukupolvenvaihdos (generational change) transactions assess the interaction between the Osakeyhtiolaki (Companies Act), the Perinto- ja lahjaverolaki relief provisions, and any applicable business-valuation methodologies. Connect with a vetted specialist through the Finland country overview directory.

For questions about the Finnish inheritance framework and how it applies to a specific estate or planned transfer, a qualified tax professional with Finnish succession expertise is the appropriate first point of contact. TaxPros Rated provides directory listings only and does not provide tax guidance.