Global Daily Tax News, Finland To Raise Inheritance Tax-Free Allowances, (Jun 30, 2025)

The Finnish Finance Ministry has launched a consultation on plans to raise tax-free thresholds under the inheritance and gift tax regime.

The Government is proposing to raise the lower limit for inheritance from EUR20,000 to EUR30,000; the lower limit for gifts from EUR5,000 to EUR7,500, and introduce a inheritance and gift tax-free limit of EUR7,500 for everyday household goods, up from EUR4,000.

Generational change relief under the inheritance tax regime would also be possible for a minor heir under certain conditions if the inheritance share consists of shares in a limited liability company. Relief could be considered if the guardian of the minor heir continues the business operations of the limited liability company.

The Government is also proposing to lower the rate of interest payable on late inheritance tax payments. The interest rate is proposed to be two percent above the reference interest rate established by the Bank of Finland, down from 3.5 percentage points above the base rate currently.

Feedback is being sought on the proposal by August 21, 2025. The changes would apply from the start of 2026.