What is the three year rule for Finnish citizens? Find out all the details in this article!
Finland is one of the best countries to live and work in the world. However, Finnish citizens also decide to move to other countries and live in these areas. This is why we wanted to cover a special article for Finnish citizens and the famous three-year rule.
If you do not pay attention to this rule while moving abroad temporarily or permanently, you may suffer from a great debt. This debt will be because of your tax residency. Are you ready to learn more about Finnish citizenship and the famous three-year rule? If so, keep reading!
What Is the Three-year Rule for Finnish Citizens?
Every Finnish citizen who is going to live abroad continues to be a Finnish tax resident for that particular year and added three more years. This is the essence of the three-year rule in Finland.
Unfortunately, you cannot change your status to Finnish tax non-residency for the year you are going to leave Finland. However, you can need to apply to the relevant government institutions to notify them about your situation.
If you inform the Finnish government that you are going to leave the country and you are not going to have any social or economic ties with Finland, you can switch your status to Finnish tax non-residency.
Of course, there are important things to know about this. In general, it is safe to categorize these under two headings as temporary and permanent leaving.
What Happens When You Move Temporarily?
If any Finnish resident is going to move to another country for a couple of years but is going to come back to the country again, he or she does not have to worry about anything. Your Finnish tax residency will continue for three years due to the three-year rule.
You can return to your country whenever you want without any additional steps or procedure. You will still be a Finnish tax resident when you come back to Finland in three years.
What Happens When You Move Permanently?
Even if you notify the government about your moving decision, the government will carry out a background check to evaluate your social and economic ties with Finland. This means that the application does not guarantee anything for you.
After the application, if no economic or social ties with Finland will be found, your status will be switched to Finnish tax non-residency. However, if one or more of the following conditions is identified, you will still be a Finnish tax resident.
- Having a home in Finland.
- If your spouse continues to live in Finland.
- You still work or provide services in Finland.
- If you have a business or company in Finland.
- If you still have social security coverage in Finland.
- Having any kind of asset or real estate in Finland.
However, it is worth noting that if you and your spouse used to live separately while you were in Finland, this article is ignored and will not count as a strong social or economic tie. In addition to this, if you have a summer cottage and you make money from it, it will not be counted as a social or economic tie. Unless it will be your only Finnish-sourced income.
I almost forgot! If you’re wondering how to become a Finnish citizen, you can read our article titled “How to Get Finnish Citizenship?“ by clicking on the highlighted link.