Editor’s Note: “Retirement in Finland” is part of an ongoing series on overseas resignation. To see all the articles in the series, jump to the end.
Whether you’re relaxing in one of the 187,000 lakes, soaking in one of the 2 million spas, or enjoying the midnight sun with a thud, Finland offers a unique landing spot for American retirees.
Yes, you will probably be venturing northerly than you imagined, but living your golden age under the aurora can be a soul-shaking experience you will never forget.
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“There’s a high quality of life in Finland,” said Paula Gaston, a native of Finland, who split the calendar year between California and Finland and set up a travel website with Gaston. “The Finland people trust the government, are willing to pay higher taxes, receive free medical care, children, social services, and free education for a functional society. It is one of the most corrupt countries in the world.”
(Image credit: Getty Images)
“Finland also has excellent public transport, and many people don’t own cars, especially in the capital,” Gaston noted.
The biggest change for US retirees unfamiliar with Finland is getting used to the long winter.
“The winter months here are cold and the days may be very short,” Gaston said. “In the shortest time, there is only a few hours of sunlight. It can be very tiring or even settle for many people. On the other hand, in the summer months, it is the opposite. During the summer bliss, you can enjoy the midnight sun, and June and July are darker.”
Finland also embodies the principle of “Nordic exceptionalism.” It is a unique blend of robust public service, low crime, world-class healthcare, a culture deeply rooted in balance and nature. “Unlike the United States, where inequality and high healthcare costs are dominated by, Finland offers retirees a safe and peaceful lifestyle centered around trust, fairness and happiness.
Citing the 2024 Global Passport Index, Saltolett ranks Finland globally second in quality of life, providing the lowest crime rate in the world and the lowest crime rate in the world (163 out of 163 on the Global Peace Index). “It’s societal trust, environmental quality and an equitable welfare system that further enhances its appeal,” she added.
(Image credit: Getty Images)
Retirement in Finland: Is it for you?
Could Finland be your ideal retirement? Let’s dig deeper and see what this Scandinavian gem offers.
Residential requirements
Although there are no retirement-specific visas, US citizens can apply for a residence permit based on sufficient private income (usually 1,00 euros per month, or about $1,134 in USD).
“Applicants must also provide evidence of the independence of private health insurance and finance,” noted Madrid Saltoletto. “Other routes include family ties and self-employed permits. Americans can stay without a visa for up to 90 days, but they must obtain a long-term residence permit through Finnish immigration services.”
US retirees with sufficient savings can apply for a residence permit under the “Residence Permit for Other Reasons” category.
“This level covers a variety of applicants, including, but not limited to, unmarried couples, artists, cultural workers, people with strong humanitarian or compassionate grounds, and individuals with strong personal ties to Finland.” “It is not specifically designed for retirees, but there is still possibility of applying.”
The success of retired citizenship relies heavily on demonstrating strong personal connections with Finland, adequate financial independence, and private health insurance covering healthcare needs. “Applicants must demonstrate that they can fully support themselves without resorting to Finland’s social assistance,” Moau pointed out.
Personal funds must also be held in the applicant’s bank account, as authorities generally do not accept sponsorships from relatives, friends or employers. “This is not a traditional retirement visa and approval is not easy. If allowed, the process can take six to 12 months.”
(Image credit: Getty Images)
Finance and taxes
Resigning in Finland will not end your tax liability in the US.
“As an American, I still get taxed on my global income while living abroad,” said Huntley Mayo Marasky, CEO of the Foreigner Tax in New York, New York.
There are a few things to be aware of.
For example, if you become a Finnish resident, distributions from your IRA or 401(k)S will no longer be taxed by the US, but Finland will tax it as pension income. “There is progressive tax rates and local taxes included there,” Mayo Malasky added. “Finland does not tax Finland residents on US Social Security benefits.”
Furthermore, investment returns may be taxed by both countries.
“The US offers foreign tax credits to offset taxes paid to Finland, but the credits are limited to the amount of US tax owed on that income,” Mayo Malasky said. “Because Finland’s tax on investment income is generally higher than the US tax rate, it may not be possible to completely offset what you pay in Finland. Placement of smart assets is essential before you make a move.”
Living expenses
Generally, it costs more than most European countries, but Finland’s cost of living is much lower than that in major US cities.
Here are some basic living expenses you can expect:
Housing Cost (2 Bedrooms):
Helsinki (center): $1,500 – $2,000/month Outside City Center: 970-$1,400/month Buy (Central Helsinki): $320,000-$440,000
“In contrast to New York City, rents are routinely $4,500, and many of the apartments purchased cost over $1 million,” Madrid Saltolett said.
Depending on your needs and preferences, groceries can cost between $300 and $600 a month for two people. “Staples like dairy and produce are affordable, but imports are more expensive,” she added.
Eating out for two people at a mid-range eatery in Helsinki costs between $50 and $100, but you can easily get lunch for $15 per diner. “If you live in a small city or town, the cost of dinner will drop to about $50,” added Madrid Saltolett. “Alcohol and certain imports have high taxes and are more expensive than in the US.”
(Image credit: Getty Images)
health care
Healthcare may be Finland’s strongest point. The public system is of high quality, and foreigners can register for the service once they become residents.
“Many doctors and nurses speak English, especially in big cities. This reduces communication concerns,” says Elaine Warren, travel expert and founder and CEO of the Family Cruise Companion website. “Some foreigners choose private insurance for faster access to professionals, but overall care is reliable.”
To access public health services, retirees must become residents and be accepted by Kera, the Finnish social security system.
“Without Kera, access to the public health system is limited,” said Joe Cronin, president of International Citizen Insurance in Boston, Massachusetts.
(Image credit: Getty Images)
Where to live
Helsinki is an obvious choice for most US foreigners looking to settle in Finland.
“It’s the capital, and there are cultural events, hospitals, great restaurants, easy transport and more,” Warren said. “But Tampere and Turku are also worth seeing. They are both small, a little more relaxed, and still have excellent service.”
If you’re looking for a lively environment with lots of services, the capital area, Helsinki, Turku, or Tampere is a great option, but they’re even more expensive.
“But there are many idyllic, small towns in Finland,” Gaston said. “Finland has over 187,000 lakes and many forests, and there are so many peaceful and beautiful areas. For those who want to be in remote areas and in the middle of nature, Lapland could be an option.
Arriving in Finland is easier than most people think. Direct flights to Helsinki operations from New York, Chicago and other major US cities. “Helsinki Airport is efficient and it’s quick and easy to get into the city from there,” added Warren. “If you’re planning on going back and forth or visiting family, such access is important.”
Generally, crime is low or absent in places that land in Finland.
“Finland is generally very safe,” Gaston said. “Crime rates are low and violent crime is rare. Like other big cities, we recommend being vigilant if you roam around in cities like Helsinki or Tampere at night, but there are no areas you actually avoid.”
Take home for retirement in Finland
Finland may not be the first place to come to mind for our retirees, but the scenic and calm atmosphere will stick to you.
“We can’t find a balance between nature, structure, or quiet life,” Warren said. “Retirement doesn’t have to mean staying yet. For some of us, it’s the perfect time to choose a new adventure.”
