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:
- 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.
- Finland gets right to tax rental income and capital gains derived from residential apartments located in Finland.
- The elimination method of double taxation will be credit method.