Ansiotulo (Earned Income)

Ansiotulo means "earned income" in Finnish tax law. It encompasses wages, business income, and certain other income types taxed at progressive municipal + state rates reaching up to approximately 44% at the highest bracket.

Prediction markets and ansiotulo

Finnish tax authorities (Verohallinto) have not issued specific guidance on prediction markets. However, speculative gains that don't qualify as pääomatulo (capital income) may be classified as ansiotulo — "other earned income" — and taxed at progressive rates.

Ansiotulo vs. Pääomatulo

• Ansiotulo (earned income): Progressive rates, municipal tax (~7–10%) + state tax (up to ~31.25%) = up to ~44%
• Pääomatulo (capital income): Flat 30% on gains up to €30,000, 34% above

The classification depends on whether prediction market contracts are considered financial instruments (capital income) or speculative activity (earned income). The distinction significantly affects your tax bill.

Reporting

Finnish taxpayers report income through OmaVero, the Finnish Tax Administration's online service. You'll need to determine the correct income category and report prediction market gains accordingly.

Example comparison

€10,000 in prediction market gains for a Finnish resident earning €50,000 in salary:

• If pääomatulo (capital income): €10,000 × 30% = €3,000 tax
• If ansiotulo (earned income): Added to salary, potentially taxed at ~35–40% marginal rate = €3,500–€4,000 tax

The difference of €500–€1,000 makes classification critical. A tax advisor (veroasiantuntija) can help determine the correct treatment.

International comparison

Finland's dual income tax system (separate rates for earned vs. capital income) is a Nordic model shared by Sweden, Norway, and Denmark. In contrast, Germany applies a single flat rate (Abgeltungsteuer) regardless of income type, and the US allows choosing between multiple classification methods.

Frequently asked questions

Can prediction market losses reduce my Finnish tax bill?

If classified as pääomatulo, capital losses can offset capital gains. If classified as ansiotulo, the deduction rules are more restrictive — losses may not be deductible against wage income.

Does Finland have a tax treaty with the US that affects prediction market income?

Finland and the US have a double taxation treaty. If any US tax is withheld on prediction market gains (rare), you may be able to claim a foreign tax credit on your Finnish return.