Retire in Finland and Live the Nordic Dream
Editor’s note: “Retire in Finland” is part of an ongoing series on retiring abroad. To see all the articles in the series, jump to the end.
Whether it’s relaxing by one of its 187,000 lakes, soaking in one of its two million spas, or enjoying the midnight sun in Utsjoki, Finland offers a unique landing spot for American retirees.
Yes, you’ll be venturing farther north than you likely ever imagined, but living your golden years under the Northern Lights can be a soul-stirring experience you’ll never forget.
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“The quality of life is high in Finland,” said Paula Gaston, a Finnish native who splits her calendar year between California and Finland and founded the travel website Gone with the Gastons. “Finnish people trust their government and gladly pay higher taxes to get free healthcare, free education for their kids, social services and a functioning society. It is one of the least corrupt countries in the world.”
(Image credit: Getty Images)
“Finland also has an excellent public transportation system, and many people don’t own a car, especially in the capital city, ” Gaston noted.
The biggest change for most US retirees unfamiliar with Finland is getting used to the long winters.
“The winter months here can be cold, and the days are very short,” Gaston said. “At the shortest periods, there’ll be only a few hours of daylight. That can be very tiring or even depressing to many people. On the other hand, in the summer months, it’s the opposite. During the summer solstice, one can enjoy the midnight sun, and in June and July, it won’t get dark.”
Finland also embodies the principles of “Nordic exceptionalism” — a unique blend of robust public services, low crime, world-class healthcare, and a culture deeply rooted in balance and nature. “Unlike the U.S., where rising inequality and high healthcare costs dominate, Finland offers retirees a secure, peaceful lifestyle centered around trust, equity, and well-being, said Dr. Laura Madrid Sartoretto, research lead at Global Citizen Solutions in Madrid, Spain.
Citing the 2024 Global Passport Index, Sartoretto said Finland ranks second globally for quality of life, offering universal healthcare, top-tier public services, and the lowest crime rate in the world (first out of 163 in the Global Peace Index). “It’s social trust, environmental quality, and equitable welfare system further elevate its appeal,” she added.
(Image credit: Getty Images)
Retire in Finland: is it for you?
Could Finland be the ideal retirement home for you? Let’s dig deeper and see what this Scandinavian jewel has to offer.
Residency requirements
While there is no retirement-specific visa, U.S. citizens can apply for a residence permit based on sufficient private income (typically 1,00 euros per month, or about $1,134 in US dollars).
“Applicants must also show proof of private health insurance and financial independence,” Madrid Sartoretto noted. “Other routes include permits through family ties or self-employment. Americans can stay visa-free for up to 90 days but must obtain a permit for long-term residency via the Finnish Immigration Service.”
US retirees with sufficient savings can apply for a residence permit under the ‘residence permit on other grounds’ category.
“This level is intended for a range of applicants, including but not limited to unmarried couples, artists and cultural workers, people with strong humanitarian or compassionate grounds, and individuals with strong personal ties to Finland,” said Audrey Morew, director at the global law firm Fragomen in Frankfurt, Germany. “While it is not specifically designed for retirees, they may still apply.”
Citizenship success for retirees depends heavily on demonstrating strong personal ties to Finland, sufficient financial independence, and private health insurance that covers their healthcare needs. “Applicants must show they can fully support themselves without relying on Finnish social assistance,” Morew noted.
Personal funds must also be held in the applicant’s bank account, as authorities generally don’t accept sponsorship from relatives, friends, or employers. “This is not a traditional retirement visa, and approval is not straightforward; the process can take six to twelve months if granted,” Morew said.
(Image credit: Getty Images)
Finance and taxes
Retiring in Finland won’t end your tax obligations in the US.
“As an American, you’re taxed on your worldwide income even while living abroad,” said Huntly Mayo-Malasky, CEO at Taxes for Expats in New York, N.Y. “You’ll also likely have to file Finnish taxes. There’s a tax treaty between the US and Finland; it helps prevent double taxation, but the treaty benefits aren’t automatic.
There are some caveats.
For example, Distributions from IRAs or 401(k)s are no longer taxed by the US once you become a Finnish resident, but Finland will tax them as pension income. “There, rates are progressive and include a municipal tax,” Mayo-Malasky added. “Finland does not tax US Social Security benefits for residents of Finland.”
Additionally, investment income may be taxed by both countries.
“The US offers a foreign tax credit to offset taxes paid to Finland, but the credit is capped at the amount of US tax owed on that income,” Mayo-Malasky said. “Finland’s tax on investment income is generally higher than US rates, so you may not be able to fully offset what you pay in Finland. Smart asset placement is essential before making the move.”
Cost of living
While expenses are generally higher than in many European countries, Finland’s cost of living is significantly lower than that of major U.S. cities.
Here’s what to expect for basic living expenses.
Housing costs (2-bedroom):
- Helsinki (central): $1,500–$2,000/month
- Outside city center: $970–$1,400/month
- Home purchase (central Helsinki): $320,000–$440,000
“Contrast those figures with New York City, where rents routinely go for $4,500 and many purchased apartments cost more than $1 million,” Madrid Sartoretto said.
Depending on need and preferences, groceries cost between $300 and $600 monthly for two people. “Staples like dairy and produce are affordable, while imported goods are more expensive,” she added.
Dining out for two at a mid-range eatery in Helsinki can cost between $50 and $100, while lunches can easily be had for $15 per diner. “If you live in smaller cities and towns, costs drop to about $50 for dinner,” Madrid Sartoretto added. “Alcohol and certain imports carry high taxes, making them more expensive than in the U.S.”
(Image credit: Getty Images)
Healthcare
Healthcare may be Finland’s strongest point. The public system is of high quality, and expats can register for services once they become residents.
“Many doctors and nurses speak English, especially in bigger cities, which reduces some of the worry about communication,” said Elaine Warren, a travel expert and the founder and CEO of The Family Cruise Companion website. “Some expats also choose private insurance for faster access to specialists, but overall, care is dependable.”
To access public health services, retirees must become residents and gain acceptance into Kela, Finland’s social security system, which does not come automatically with residency.
“Access to the public healthcare system is limited without Kela,” said Joe Cronin, president of International Citizens Insurance in Boston, Mass. “This is why international health insurance remains paramount, particularly during the waiting period or for those ineligible for Kela. Additionally, many non-EU retirees opt for private healthcare during their initial years due to the greater availability of English-speaking staff, particularly in urban centers.”
(Image credit: Getty Images)
Where to live
Helsinki is the obvious choice for most US expats seeking to settle in Finland.
“It’s the capital, and it has everything — cultural events, hospitals, great restaurants, and easy transport,” Warren said. “But Tampere and Turku are also worth looking at. Both are smaller, a bit more relaxed, and still have excellent services.”
If you are looking for a vibrant environment with many services, then the capital city area, Helsinki, Turku, or Tampere, are great options, but they are more expensive.
“Yet there are many idyllic, smaller towns in Finland,” Gaston said. “Finland has over 187,000 lakes and many forests, so many peaceful and beautiful areas exist. For those who want to be in a remote area and the middle of nature, Lapland could be an option. Just note that the winters are harsh and long above the Arctic Circle.”
Getting to Finland is easier than many think — direct flights to Helsinki run from New York, Chicago, and other major US cities. “The Helsinki airport is efficient, and getting into the city from there is quick and easy,” Warren added. “That kind of access matters if you plan to travel back and forth or have family visiting.”
By and large, crime will either be low or non-existent anywhere you land in Finland.
“Finland is generally very safe,” Gaston said. “The crime rate is low, and violent crimes are uncommon. Like in any other big city, it’s advisable to be alert if you walk around in cities like Helsinki or Tampere at night, but there are no actual areas to avoid.”
The takeaway on retiring in Finland
Finland might not be the first place that comes to mind for US retirees, but the scenic and serene vibe sticks with you.
“The balance between nature, structure, and quiet living is hard to find,” Warren said. “Retirement doesn’t have to mean staying still. For some of us, it’s the perfect time to choose a new adventure.”
More on where to retire abroad
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