Finland foreign Investments incentives

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Finland foreign Investments incentives





Finland Encouragement Laws



Finland Investment Encouragement Laws: A Guide for Foreign Investors (2025)
Finland actively seeks foreign investment, offering a variety of incentives and a supportive business environment.
Here's an overview of the key encouragement laws and programs:  

1. Research and Development (R&D) Incentives:

  • R&D Tax Credits: Finland provides tax credits for eligible R&D expenses, encouraging innovation and technological advancement.  
  • Business Finland Funding: Business Finland offers funding and support for R&D projects, particularly those with high growth potential.  
  • Innovation Ecosystem: Finland's strong innovation ecosystem, with universities, research institutions, and technology parks, provides a fertile ground for R&D activities.  

2. Regional Development Incentives:

  • Regional Investment Aid: Finland offers regional investment aid to support investments in designated development areas.  
  • Regional Transport Support: Support for transport related costs for companies operating in designated regions.
  • Employment Support: Subsidies are available for companies that create new jobs in development regions.

3. Startup Ecosystem Support:

  • Startup Permits: Finland offers a specific residence permit for startup entrepreneurs, facilitating the establishment of innovative businesses.  
  • Business Finland Startup Funding: Business Finland provides funding and support for startups, including early-stage financing.  
  • Incubators and Accelerators: Finland has a network of incubators and accelerators that provide mentoring, networking, and funding opportunities for startups.  

4. Foreign Direct Investment (FDI) Promotion:

  • Business Finland Investment Promotion: Business Finland actively promotes Finland as an investment destination, providing information and support to foreign investors.  
  • One-Stop Shop Services: Business Finland offers one-stop-shop services to streamline the investment process.

5. Tax Incentives:

  • Competitive Corporate Tax Rate: Finland has a competitive corporate income tax rate.  
  • Extensive Double Taxation Treaties: Finland has an extensive network of double taxation treaties, preventing double taxation of income.
  • VAT Refund System: A robust VAT refund system.
  • R&D related tax deductions.

6. Labor Market Incentives:

  • Highly Skilled Workforce: Finland has a highly educated and skilled workforce, making it an attractive location for knowledge-intensive industries.  
  • Flexible Labor Laws: Finland's labor laws are relatively flexible, allowing companies to adapt to changing business needs.  

7. Sustainable Investment Incentives:

  • Clean Energy Investments: Finland is committed to clean energy and offers incentives for investments in renewable energy and energy efficiency.  
  • Circular Economy Initiatives: Finland promotes circular economy practices and supports investments in sustainable solutions.  
Key Considerations for Foreign Investors:
  • Business Finland: Business Finland is the primary resource for information on investment incentives.
  • Regional Development Agencies: Regional development agencies can provide information on regional incentives.
  • Legal and Professional Advice: Seek legal and financial advice from experts in Finland.
  • Due Diligence: Conduct thorough due diligence before making any investment.


Finland's proactive approach to attracting foreign investment, combined with its stable and innovative economy, makes it a compelling destination for businesses seeking long-term growth.  



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