Deducting capital losses in Finnish taxation

General information, not tax advice. Verify your own situation or consult a professional.

What is a capital loss

A capital loss (luovutustappio) arises when you sell a security for less than you paid for it. The loss equals the sale price minus the acquisition cost and the buying and selling fees — so trading fees increase the deductible loss. In Finnish taxation capital losses are deductible, but only when reported correctly and within a few limits. Trades with a foreign broker such as Interactive Brokers must be calculated in euros: every item is converted at the exchange rate of the trade date.

How the loss is deducted

Since 2016 a capital loss is first deducted from capital gains of the same year. If gains are not enough, the remaining loss is deducted from your other capital income of the same year, such as dividends, rental income or interest income. Before 2016 a loss could only be set against capital gains, so the change widened the deduction considerably.

• First: capital gains of the same year
• Then: other capital income of the same year
• Finally: any unused part carries forward to future years

Carrying the loss forward for 5 years

If a loss remains unused, it is deducted from capital income over the following five years. The oldest loss is always used first. You do not have to claim it separately — the Tax Administration tracks confirmed losses automatically, as long as the original sale was reported correctly. That is why even a loss-making trade is always worth reporting, even if it gives no immediate benefit.

Small sales are tax-free — and their losses non-deductible

If your combined sale proceeds for the tax year are at most €1,000, capital gains are tax-free. Correspondingly, losses from such small sales are not deductible. The threshold is measured from sale proceeds, not from profit — so keep an eye on your total sales, not just the result.

Example: a loss covers a gain and carries forward

Suppose that in 2026 you sold stock A at a €3,000 gain and stock B at a €5,000 loss (fees included). The tax works out as follows:

• The €5,000 loss is first deducted from the €3,000 gain → €2,000 of loss remains
• If you also received, say, €1,200 in dividends that year, €1,200 is deducted from them → €800 remains
• The remaining €800 carries forward to 2027–2031, oldest first

Remember: the deemed acquisition cost can never create or increase a loss. The deemed cost is used only when it yields a smaller gain.

How PnlTrack helps

• Computes the realized gain and loss of every sale on a FIFO basis
• Converts currencies at ECB rates by trade date
• Nets gains against losses and shows the year-end result
• Flags whether total proceeds cross or stay under the €1,000 threshold
• Produces ready OmaVero figures and shows the amount carried forward

Fees increase the deductible loss, and PnlTrack includes them automatically — even when your trades are in different currencies.

General information, not tax advice. Verify your own situation or consult a professional.