The Rising Challenge of Paying Inheritance Tax in Finland: Insights from a Recent Survey

Paying inheritance tax can be a significant expense for many individuals, especially those in Finland. According to a recent survey conducted by the insurance company Lähi-Tapiola, over half of Finns have received or are anticipating receiving an inheritance that requires payment of inheritance tax. This tax must be paid on inheritances worth 20,000 euros or more, and many people struggle to cover these costs without external funding.

The survey results revealed that nearly one in ten respondents who received or will receive an inheritance had to take out a loan to pay for the inheritance tax. Some individuals have had to resort to selling their own property to cover these expenses. In situations where the inheritance consists of immovable property that cannot be sold, the heirs may face even greater challenges.

When it comes to covering inheritance tax expenses, there are several options available. Using the estate’s savings or the heir’s own savings is one common strategy. Selling estate property is another common method, as is selling the heir’s own property. However, more than 10 percent of respondents admitted to not preparing for the future costs of inheritance tax at all.

Unpaid inheritance taxes are becoming an increasingly significant issue in Finland. Last year, almost eight million euros in inheritance taxes were subject to enforcement actions. The number of people paying inheritance tax has also increased, with over 100,000 individuals paying an average of 10,000 euros each. Interest on unpaid taxes is also a concern, as the rate has increased to 7.5 percent.

It is important for individuals to address their inheritance tax obligations promptly to avoid accruing additional interest and penalties. Planning for these expenses and seeking financial guidance can help individuals navigate these complex financial responsibilities effectively.

In conclusion, paying off heritage taxes can be challenging for many people in Finland who receive large amounts of immovable property they cannot sell easily enough quickly enough.