The Finnish Government decided to introduce an exit-tax (appreciation tax, departure tax) that is triggered in situations where a tax resident individual relocates abroad and becomes non-resident in Finland for tax purposes. In these situations Finland’s right to tax income and capital gains derived from the assets held by the tax resident individual generally ends. Finland introduced an exit tax for corporations already in the beginning of 2020.
In brief, exit taxation means that the unrealized capital gains accumulated during tax resident in Finland will be taxed when moving out of Finland or when the assets are disposed while living abroad. The new tax rules are currently in preparation and planned to come into force at the beginning of 2023. Details of the new exit tax rules are still widely open and will be specified during the preparation period.