Finland-France treaty moves French rental and gains relief to credit from 2027

Finnish residents remain taxable in Finland on worldwide income, including rent from a French dwelling and gains from selling a dwelling in France. France may also tax the same immovable-property income as the situs state. From 1 January 2027 double taxation on that French-source income is relieved in Finland by the credit method (hyvitysmenetelmä)Vero rather than the exemption methodVero: Finland computes Finnish tax and credits French tax paid against it.

For rents the cutover is explicit. Through the end of 2026 a Finnish resident whose rented dwelling is in France qualifies for the exemption methodVero: Finland does not tax the rent, but the rent must still be reported because it can raise the rate charged on other capital income, and no deduction for maintenance expenses or loan interest is available against the part exceeding the income. From 2027, when French rent falls under the credit methodVero, Finland applies the general credit-method computation to that rent: 30% tax, or 34% on the part of total capital income above EUR 30,000, minus the French tax paid.

The taxable amount follows domestic rules. Letting expenses are deductible as expenses for the acquisition of income, interest on a loan against the dwelling is deductible against capital income, and where the dwelling counts as real property in the situs state the amount follows Finnish real-property computation, including building depreciation and a deduction for foreign real-estate tax paid. Rent from movable property abroad while resident in Finland is generally taxable only in Finland. All foreign rents and expenses must be checked on the pre-completed return and corrected by the stated deadline even where no taxable rent remains.

For sales the mechanics are parallel. Gains on property abroad are computed as domestic gains, and a gain is exempt in Finland where the seller owned the foreign dwelling for at least two years and used it continuously as a permanent home for at least two years. Otherwise Verohallinto assesses Finnish capital-income tax at 30% below EUR 30,000 of capital income and 34% above that threshold, and from 2027Vero credits French tax against that tax instead of exempting the gain.

The same date moves France into the hired-worker treaty-country list.Vero A worker arriving from France with only a foreign agency contract, working under the direction of a Finnish client, is taxed in Finland from the first working day regardless of stay length. A brief stay means limited liability at 35% source tax after a deduction of EUR 510 per month, or EUR 17 per day under a month, with progressive taxation available on claim; a stay over six months or a home in Finland generally brings worldwide liability subject to treaty limits, with a Finnish identity code, tax card or advance tax, and an in-person service-point visit by the end of the month after work starts.

Report foreign gains and rents in OmaVero or on paper form 16B, Selvitys ulkomaan tuloista, pääomatulot; Finnish rental receipts use forms 7H, 7K or 7L. Seek advance tax promptly and adjust it before assessment closes if amounts change.

The legal basis is the new Finland–France tax treaty signed 4 April 2023, in force 28 August 2026Vero and applied from 1 January 2027Vero (Valtioneuvoston asetus 34/26), replacing the prior treaty and its exemption-method reliefVeroVero.