Parliament raises inheritance and gift tax thresholds from 2026

By admin On Dec 3, 2025

Real estate and housing shares are the most commonly inherited assets in Finland. Photo: Lehtikuva

Finland’s Parliament has passed a law to raise the minimum taxable amounts for inheritances and gifts. The reform will take effect from the beginning of 2026.

The new law increases the inheritance tax threshold from €20,000 to €30,000. Inheritances valued below the new threshold will not be taxed. The gift tax threshold will also rise from €5,000 to €7,500.

In addition, the exempt value of ordinary household belongings received as inheritance or gift will increase from €4,000 to €7,500.

Parliament approved the bill on Wednesday with 114 votes in favour, 52 against, and 33 members absent.

The legislative change will reduce the total tax burden across all taxable inheritances and gifts. Taxes will be calculated only for assets exceeding the revised minimum thresholds. Adjustments will also be made to payment terms and progression steps in the tax scale.

The National Coalition Party has promoted the idea of easing inheritance taxation. In early 2025, Prime Minister Petteri Orpo’s economic working group suggested abolishing the inheritance tax entirely. The proposal did not advance after internal assessments indicated full repeal would be fiscally unviable.

The last major update to Finland’s inheritance tax law was in 2009. Since then, income levels and property values have increased, resulting in more estates exceeding the old thresholds. The new thresholds are intended to reflect current financial conditions better better.

The change means that more Finnish residents receiving moderate inheritances, such as small residential properties or personal savings, will avoid tax obligations entirely.

Gift taxes, which apply to non-inherited transfers between individuals, will also be affected by the higher threshold. Gifts valued under €7,500 will no longer trigger tax liabilities.

Source: www.helsinkitimes.fi