Finland Capital Gains Tax Guide 2026 (Pääomatulo)

Calculation of Gains

A capital gain is the difference between the selling price and the acquisition cost (purchase price plus transaction costs). The acquisition cost can be calculated using either the actual cost method or the deemed acquisition cost method (hankintameno-olettama). The deemed acquisition cost method allows you to deduct 20% of the selling price for assets held under 10 years, or 40% for assets held 10 years or more (instead of the actual cost). This is beneficial when the actual cost is low or hard to determine. You can choose whichever method gives a lower taxable gain for each sale. Losses from the sale of assets can be deducted from capital gains in the same year and carried forward for 5 years, deductible only against capital gains.

Property Gains and Primary Residence Exemption

Gains from the sale of real estate are taxed as capital income at 30%/34%. However, gains from the sale of your primary residence (vakituinen asunto) are tax-exempt if you have owned and lived in the property for at least 2 continuous years (or owned for at least 1 year and lived in it). The property must have been your permanent home during that period. If you sell the property before meeting the 2-year holding requirement, the gain is fully taxable. The exemption does not apply to holiday homes or investment properties. For partial use (e.g., part of the property rented out), the gain is partially taxable. If you sell your primary residence at a loss, that loss is not deductible.

Shares and Securities

Gains from the sale of shares, bonds, and other securities are taxed as capital income. The cost basis for shares is determined on a FIFO (first-in, first-out) basis unless you specifically identify shares sold (which is possible with certain brokers). The deemed acquisition cost method can be very beneficial for shares held long-term — 40% of the selling price is tax-free for shares held over 10 years. Dividend income from listed companies is partially taxable (85% of dividends are taxable). Capital losses on shares can be deducted from capital gains in the same year, and any excess loss can be carried forward for 5 years.

Exemptions and Special Rules

Small disposals: if total capital gains from the sale of assets in a tax year are less than €1,000, the gains are tax-free. Gains from the sale of personal-use items (household goods, furniture, personal belongings) are tax-free if the selling price is under €5,000 per item. Gains from the sale of a business (liikkeen luovutus) may qualify for special treatment under certain conditions, including partial tax exemption for senior entrepreneurs. Cryptocurrency gains are generally taxable as capital income under the same rules as other assets.

Filing and Reporting

Capital gains are reported on the pre-filled tax return (veroilmoitus) each year. The Tax Administration receives transaction data from Finnish brokers and pre-fills the information. For foreign brokers or assets not reported automatically, you must manually report each transaction. Losses must be actively claimed. The tax on capital gains is paid through the general tax payment system, and any underpayment is collected with the final tax assessment.

FAQs

Is cryptocurrency taxed the same as shares?

Yes, cryptocurrency gains are taxed as capital income at 30%/34%. Each trade (including crypto-to-crypto) is a taxable event. Mining income is taxed as earned income.

Can I offset capital losses against other income?

No, capital losses can only be offset against capital gains. Unused losses can be carried forward for up to 5 years.

What is the exemption for selling my home?

Gains from selling your primary residence are tax-free if you have owned and lived there for at least 2 continuous years before the sale.