What counts as a business expense in Finland?
A practical guide for sole traders and freelancers
You know that coffee you grabbed before a client call. The laptop you bought to do the work. The phone plan that's basically your office.
Are those business expenses? Can you deduct them?
These are some of the most common questions Finnish entrepreneurs ask. The answers matter, because deducting eligible expenses means paying less tax. But claiming the wrong things can cause headaches with the tax office.
Here's a plain-language breakdown of what you can and can't deduct, and how to keep things in order without becoming an accountant.
What is a business expense, exactly?
A business expense is a cost that arises directly from running your business. In Finland, the general rule is simple: if the expense is necessary for earning income, it's deductible.
The Finnish Tax Administration (Vero) uses the phrase "costs of acquiring and maintaining income", which is just a formal way of saying: if you spent it to do your job, you can probably deduct it.
Two things tend to trip people up:
- Mixed-use items — things used for both work and personal life
- Gray areas — expenses where the business connection isn't obvious
We'll cover both below.
Common deductible expenses for freelancers and sole traders
Equipment and tools
Laptops, phones, cameras, microphones, printers. If you use it for work, it's deductible. If you also use it personally (which most people do), you can typically deduct the portion that reflects business use. A laptop you use 80% for work can still be deducted, just not in full.
Equipment under €1,200 can usually be deducted in full in the year of purchase. More expensive items are depreciated over multiple years.
Software and subscriptions
Accounting software, design tools, project management platforms, cloud storage, professional databases. All deductible if used in your work. This includes tools like Adobe Creative Cloud, Notion, Slack, and accounting software like NoCFO.
Home office costs
If you work from home and have a dedicated workspace, you can deduct a portion of your housing costs. Vero uses a standard formula based on the size of your workspace relative to your total living space. You don't need to itemise every electricity bill, the standard deduction covers it.
Business travel
Travel costs related to client meetings, site visits, events, or other work purposes are deductible. This includes public transport, taxis, and mileage if you use your own car. Vero sets an annual mileage rate (€0.30 per km in 2025) that you can use instead of tracking actual fuel costs.
International travel for business conferences or client work is also deductible — flights, accommodation, and daily allowances included.
Meals and entertainment
Meals during business travel are fully deductible. Client entertainment — taking someone out to lunch to discuss business — is partially deductible, though the rules are stricter. A working lunch where business is actually discussed is different from a social dinner that happens to involve clients.
Meals you eat during the normal workday at your desk are not deductible.
Marketing and advertising
Website costs, social media ads, printed materials, photography for your business. All deductible. If you pay a designer to build your brand or a copywriter to write your website, that's a business expense too.
Professional development
Courses, workshops, books, and training that are directly relevant to your current work are deductible. The key word is "current", education that helps you switch to a completely different career is not deductible as a business expense.
Professional services
If you hire an accountant, lawyer, or consultant for business purposes, those fees are deductible. Including the cost of your bookkeeping software.
Insurance
Business insurance — professional liability cover, equipment insurance, and similar — is deductible.
What's not deductible?
A few things people commonly try to deduct but can't:
- Your own salary — sole traders don't pay themselves a wage; profit is taxed as personal income
- Personal clothing — unless it's a specific uniform or protective gear required for the work
- Fines and penalties — parking fines, tax penalties, and similar costs aren't deductible
- Personal meals — food you eat at home or at your desk during a regular workday
The documentation rule: keep your receipts
In Finland, you need to be able to prove every business expense you claim. That means keeping receipts, ideally with a note about what the expense was for and why it was business-related.
The tax office can request documentation years after the fact, so it's worth staying organised. Modern bookkeeping tools make this much easier than it used to be. With NoCFO, you can photograph a receipt the moment you get it and attach it directly to the transaction. Everything is stored digitally and searchable.
No receipt pile. No year-end scramble.
VAT on expenses
If you're registered for VAT, you can also reclaim the VAT portion of most business expenses. This is handled through your VAT return and is separate from the income tax deduction — but just as important, and another reason to keep receipts.
A practical rule of thumb
When you're unsure whether something is deductible, ask yourself:
Would I have this cost if I weren't running a business?
If the honest answer is no, or mostly no, it's probably deductible. If you would have spent the money anyway, it probably isn't.
When in doubt, make a note of the business purpose and keep the receipt. You can always check with Vero if something is unclear. And if you're managing your own books with NoCFO, every transaction gets a suggested category automatically, making it easier to spot what fits where.
NoCFO is bookkeeping software built for freelancers and small business owners in Finland. Track expenses, manage VAT, and stay on top of your finances without an accounting background. Try it free at nocfo.io.