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.
- Business Finland:
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.