A heated debate over Finland's inheritance and gift tax is unfolding in parliament, with the current government proposing adjustments but facing pressure for a complete abolition. The reform, set to take effect early next year, would raise the tax-free threshold for inheritances from 20,000 euros to 30,000 euros and for gifts from 5,000 to 7,500 euros. Despite these changes, members of the ruling coalition parties, the Finns Party and the National Coalition Party, argue the measures are insufficient and continue to push for the tax's total removal, calling it an 'unreasonable burden' on families and businesses.
This debate holds particular weight for Finland's technology sector, a cornerstone of the national economy. For Helsinki-based startups and established Espoo innovation hubs, inheritance tax directly impacts generational transitions in family-owned tech firms and the transfer of intellectual property. The tax is seen by many entrepreneurs as a double levy, where assets already taxed during acquisition are taxed again upon transfer, potentially stifling the continuity of companies like Rovio, Supercell, or Remedy Entertainment. Nokia's vast legacy and the ecosystem of smaller gaming studios around Helsinki could face complex succession planning due to these rules.
Finns Party MP Anne Rintamäki, who summarized the proposed changes, stated the party's position clearly. 'From the Finns Party perspective, this is a step in the right direction but not yet sufficient. Inheritance and gift taxation is an unreasonable burden for many Finns. When tax has already been paid on assets at the point of acquisition, it is difficult to accept that the same assets are taxed again in connection with an inheritance,' Rintamäki said. She confirmed her party advocates for the tax's complete elimination to support domestic ownership and ease business succession.
National Coalition Party MP Milla Lahdenperä called for a more radical overhaul, comparing the debate to a board game with bad rules no one dares to change. She advocated for a model where taxation occurs only when assets are sold or income is realized. 'If we want Finland to grow, we must have taxation that does not punish saving and long-term work. The current inheritance tax does exactly this,' Lahdenperä argued. Her colleague, Juha Hänninen, also supported full abolition, believing it would boost purchasing power and improve the economic climate, predicting the next government would remove it entirely.
Prime Minister Petteri Orpo has also hinted at the desire for a larger change, even floating the idea of removal. However, opposition Centre Party MP Antti Kurvinen injected a note of fiscal realism, pointing out that a full repeal is not currently feasible as it provides substantial revenue for the state in a difficult economic situation. The Centre Party proposed an alternative: a ten-year interest-free payment period for inheritance tax.
The outcome of this debate is critical for the Finnish technology sector's future. A significant reduction or removal of the tax could facilitate smoother ownership transitions in the gaming industry and telecommunications, encouraging investment and long-term stability. Conversely, maintaining high rates could complicate succession for the many small and medium-sized tech enterprises that form the backbone of innovation in Espoo and Helsinki. The government's final decision will signal its priority: immediate tax revenue or fostering an environment conducive to generational business growth and the sustained health of the Finnish tech ecosystem.