Finland's government has unveiled a sweeping economic programme for 2027–2030, anchored by a cut in corporate tax to 18% and expanded household deductions, as Helsinki bets on business investment and consumer stimulus to drive recovery, while raising the tax burden on tobacco, alcohol, and gambling.
The Finnish government has announced the economic plan for the years 2027–2030 on 22 April 2026. Key measures include tax incentives for households and businesses, significant investments in infrastructure and housing, and a strategic focus on bolstering national defence and security. To support the workforce, the plan introduces specific programmes for youth employment and reforms to the entrepreneurial pension system.
Boosting corporate competitiveness and entrepreneurship
A cornerstone of the government’s plan is a major reduction in corporate income tax, which is scheduled to drop to 18% starting in 2027. This move is designed to make Finland a more attractive destination for investment and to support businesses as they emerge from the recent economic downturn.
In addition to the corporate rate cut, several other measures aim to support business owners and innovators:
- Entrepreneurial deduction: For private entrepreneurs, farmers, and partnerships, the entrepreneurial tax deduction will be increased from 5% to 5.5%.
- Stock option reform: To help growth companies attract talent, the taxation of employee stock options in unlisted companies will be deferred. Instead of being taxed at the moment of exercise, the tax will only be triggered at the moment the underlying shares are sold.
- Personnel offerings: Regulations regarding directed share issues will be modernised, allowing employees of subsidiaries to receive shares in the group’s parent company.
VAT, excise duties and waste tax
- VAT and consumption: VAT and consumption tax policy continues shifting toward indirect taxation, including raising the lottery tax to 22% as part of broader gambling market reforms.
- Excise duties: Significant increases are slated for tobacco and alcohol taxes, effective from 01 January 2027. Alcohol taxes will also undergo automatic annual index adjustments to keep pace with inflation.
- Waste tax: The waste tax base will be expanded starting 01 January 2027.
Targeted tax credits and sector-specific changes
- Household deduction: To encourage home maintenance and care services, the maximum deduction will rise from EUR 1,600 to EUR 2,100. Furthermore, the deduction rate for services purchased from companies will increase from 35% to 40%, while the deduction rate for wages paid will rise from 13% to 15%. These changes are intended to take effect before the end of 2026.
- Commuting costs: To offset rising fuel prices, the deductible threshold for travel expenses will be reduced to EUR 800 for 2026.
- Transport and energy: Vehicle tax will be reduced by EUR 10 million annually starting on 1 January 2028. For the industrial sector, a “professional diesel” scheme for heavy transport will be implemented for at least a ten-year period. Additionally, the energy tax rebate for agriculture will see a temporary increase of 4 cents per litre for the 2025 and 2026 refund cycles.
- Regional tourist tax: A new legislative framework will allow municipalities to introduce a local tourist tax starting 1 January 2028, with the revenue going directly to the local government.
