Foreign investment funds investing in Finnish securities must meet strict conditions to qualify for withholding tax exemption. One of the primary requirements is having at least 30 investors.
If this threshold is not met, the fund must comply with the following criteria:
Two recent decisions by the Helsinki Administrative Court (both not yet final) have clarified critical aspects of Finland’s tax exemption regime for investment funds.
Case 1: Decision of 13 October 2025
The court ruled that sub-funds of a Jersey-based umbrella fund structured as an Open-ended Investment Company (OEIC) do not qualify for Finland’s tax exemption because:
Case 2: Decision of 11 September 2025
The court held that a newly established Luxembourg SCSp (special limited partnership), organized as an open-ended AIF, can be treated as a Finnish tax-exempt special investment fund despite its partnership form.
Key factors influencing the decision:
If the 13 October ruling becomes binding, it could significantly impact funds relying on indirect investor counts and those that do not distribute profits.
Globe Refund recommends appealing any negative decisions related to investor count or distribution requirements to safeguard exemption claims.
The 11 September decision, consistent with a 2024 precedent, confirms that legal form is not decisive. AIFM-regulated partnership funds can qualify for Finland’s tax exemption regime. If upheld, this ruling could help regulated partnership funds secure withholding tax relief and treaty benefits, depending on their specific structure.
Navigating Finnish withholding tax rules can be complex. Globe Refund specializes in securing tax exemptions and refunds for investment funds across Europe, including Finland.
Contact Globe Refund today to ensure your fund meets the requirements and maximizes tax efficiency.
Our work focuses on providing outsourced withholding tax recovery services to safeguard your investments from over-taxation and save your time from burdensome processes.
