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Companies operating across the Nordic and Baltic region will face significant regulatory, tax and payroll changes in 2026. These updates stem from new EU directives as well as national reforms, and they affect compliance, workforce planning and long‑term business strategy. This article provides a country‑by‑country overview of the most important changes to help mid‑sized and large companies understand how the 2026 updates may impact their operations.
Contents
Here is a country‑by‑country overview of regulatory changes in the Nordic and Baltic region in 2026. This summary helps companies understand tax, payroll and compliance updates across seven markets.
Sweden: Key Regulatory and Tax Changes in 2026
Accounting Framework Changes (K2/K3) (from January 2026)
- Updates and restrictions in which companies can apply framework K2 and K3 rules. The changes of K2 and K3 means that companies with complex operations or significant financial activities adhere to the more comprehensive and transparent K3 framework instead of the simplified K2
New “3:12” Rules (from January 2026)
- Major changes to taxation of dividends and capital gains for closely held business
Reduced Employer Contributions for Young Employees (April 2026–Sept 2027)
- Temporary cost relief for hiring employees aged 19–23, impacting workforce planning
Norway: Compliance, Payroll and Reporting Updates
Company Name Compliance (from July 1 2026)
- All NUF entities must update their name to include the foreign parent’s legal name and end with “NUF"
- Alternative names not part of the parent’s legal name will no longer be allowed
Payroll Changes (from January 2026)
- Payroll withholding tax no longer kept in a separate Norwegian bank account
- Bank guarantees removed
- Tax must be paid directly to the Norwegian Tax Administration by the first working day after salary payment
New Reporting Requirement (from June 2026)
- Shareholders register statement for AS companies must be filed via a pre-system, direct filing through Altinn will no longer be possible
Denmark: Transfer Pricing Documentation Changes
Changes to the transfer pricing documentation regulations in Denmark (already adapted)
- In 2025, Denmark eased its transfer pricing documentation rules by exempting companies in Denmark with controlled transactions below DKK 5 million. The thresholds on group level for limited documentation were raised to DKK 195 million in balance sheet total and DKK 391 million in revenue, while the employee limit remains at 250. To qualify for the exemption, companies must have fewer than 250 employees and meet one of the revised financial thresholds.
Finland: Corporate Tax, VAT and Income Tax Changes
Corporate Tax Rate Reduction (from 2027)
- Finland will cut its corporate tax rate from 20% to 18% for fiscal years ending in 2027. Important for long-term planning
Extended Loss Carry forward (from January 2026)
- Loss carry forward period increases from 10 to 25 years, improving flexibility for future tax planning
Key Tax Changes (from January 2026)
- Reduced VAT rate: from 14% to 13.5% (Jan 2026)
- The tax rate for key employees will decrease from 32% to 25% starting January 1, 2026, and this applies to both new and already granted key employee tax cards
- The €85 tax incentive for low-emission cars will end on December 31, 2025
- Cap on the highest marginal tax rate on earned income at 52%, down from previous peaks above ~59%
Estonia: Income Tax, Social Tax and Wage Updates
Non-Taxable Income (from January 2026)
- Basic exemption: €700/month (€8,400/year) for individuals; higher for retirees. The basic exemption will be applicable for all employees as of 2026. Until December 2025 employees who earn more than 2100 eur gross per month were not entitled to any tax-free income
Minimum Wage & Other Updates (planned changes for 2026)
- No confirmed minimum wage for 2026 yet (proposal: €991/month)
- Daily cap for temporary incapacity benefits €126.87 Currently no such limitation at all
- Minimum social tax base €886/month. Changes yearly due to rise of a minimum wage
Corporate & Personal Income Tax
- Previously planned increases to corporate income tax and personal income tax were abandoned by the government in the latest state budget decisions and will remain unchanged
Lithuania: Major Payroll, PIT and Corporate Tax Changes
Payroll & Employment (from January 2026)
- Minimum Monthly Salary Increase
- From €1,038 to €1,153; hourly rate €6.35 to €7.05
- Impacts vacation pay, sick leave, and other salary-based calculations
- SODRA Minimum Contribution Raised
- From €220.78 to €245.24 for employees earning below MMS
- Daily Allowance Tax Exemption Threshold
- Tax-free only if salary ≥ €1,902.45/month or hourly > €11.63
- Tax-Exempt Amount (TEA) Formula Simplified
- Applies only to salaries ≤ €2,677.49/month; NPD = €747 for MMS earners
- Previous dual formula removed
Personal Income Tax (from January 2026)
- Progressive PIT Rates Introduced
- Up to 36 avg salaries (~€83,237.40): 20%
- 36–60 avg salaries (~€83,237.40–138,729): 25%
- Above 60 avg salaries (>€138,729): 32%
- Voluntary Health Insurance Tax Exemption Reduced
- From unlimited to €350/year; excess taxed as income
Corporate & Business Taxes (from January 2026)
- Corporate Income Tax Rate Increase
- Standard CIT: 16% to 17%; small business CIT: 6% → 7%
- Small Business Tax Relief Extended
- 0% CIT for new small businesses: 1 year → 2 years
- Loss Carryforward Restricted
- Previously unlimited is now limited to 70% of taxable income
Indirect Taxes
- VAT Changes
- Accommodation/transport/cultural events: 9% to 12%
- Books/publications: 9% to 5%
- Heating/firewood/hot water: 9% to 21%
Pension & Retirement (from January 2026)
- Pension System & Retirement Age
- II pillar becomes flexible: opt-out allowed, adjustable contributions, withdrawals possible
- Retirement age aligned at 65 years; minimum service period increases.
Latvia: Tax, VAT and Wage Changes in 2026
Personal Income Tax & Minimum Wage (from January 2026)
- Minimum monthly wage increases to EUR 780
- Non-taxable minimum rises to EUR 550/month
VAT Changes (from January 2026)
- VAT on non-EU language publications increases from 5% to 21% (from January 2026)
- Temporary VAT reduction to 12% for essential food products (bread, milk, eggs, poultry) from July 2026 to June 2027
Corporate Income Tax & Alternative Regime (from January 2026)
- New split tax system for companies with only individual shareholders: CIT 15% + PIT 6% on dividends
- Interest payment restrictions eased from 2028 for PPP projects and licensed EU financing
EU Pay Transparency Directive – Implementation by June 2026
The EU Pay Transparency Directive aims to strengthen equal pay and reduce the gender pay gap across the EU. By 7 June 2026, Member States must implement rules requiring greater pay transparency, including salary information for job applicants and pay data access for employees. Larger companies will face gender pay gap reporting obligations and may need to take corrective action where unjustified gaps exist.
Get in touch
Our Nordic–Baltic advisory team monitors regulatory developments across all seven markets and supports companies with compliance, tax planning and cross‑border operations.
Contact our Nordic–Baltic advisory team for tailored guidance on how these 2026 changes affect your business.
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Terje Liiv Terje is responsible for creating and maintaining excellent client relationships and works to ensure that client satisfaction with our services continues to grow. Terje joined Grant Thornton Baltic in 2015 and has been an advocate for providing an outstanding client experience. She believes that the client should feel welcome from the first contact to the end of the client journey. In 2024, Terje became a partner.View Profile