The new Finnish-Spanish double tax treaty will come into force 1.1.2019

According to the Ministry of Finance, Spain has on April 30, 2018 announced it has approved the new tax treaty. Finland has given such a notification already earlier. Hence, the new treaty will be applied as from January 1, 2019. The major changes concerns the following topics:

  1. Finland as a source country will get right to tax even private sector pensions. However, during the three-year transition period, Finland will not tax these pensions, if they are taxed in Spain.
  2. Finland gets right to tax rental income and capital gains derived from residential apartments located in Finland.
  3. The elimination method of double taxation will be credit method.