At the beginning of 2023, the Finnish Parliament approved the capital gain taxation derived from the disposal of shares in non resident holding entities owning real estate properties indirectly or directly in Finland, with effects March 1, 2023.

Until the law came into force, these types of transactions were not taxed in Finland. By passing the law through the Finnish Parliament, the potential benefit derived from the disposal of shares of non-resident companies is subject to taxation if, at any time during the 365 days prior to the sale, 50% of the assets held directly or indirectly by the company relate to real estate located in Finland.

All of this is regardless of what is regulated in Double Taxation Agreements, which obviously take precedence over local regulations.

For the purposes of this reform, real estate covers transferable land lease agreements, buildings, and possession rights.

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All information contained in this publication is up to date on 2023. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.