Finland – Self-Employment

How does self-employment work for expats in Finland?

Finland has a clearly structured legal framework governing self-employment, and the rules you must follow depend primarily on your nationality and current residency situation. Citizens of EU member states, Nordic countries, Liechtenstein, or Switzerland are not required to hold a residence permit in order to work as an entrepreneur in Finland, but they must register their EU right of residence. For everyone else, obtaining a specific residence permit before commencing any trading activity is mandatory.

If you are a national of a country outside the EU or the Nordic region and wish to run a business in Finland, you will need to apply for a residence permit that is specifically linked to your entrepreneurial work. Crucially, this means you must be genuinely active within the business — mere ownership of a company is not enough to qualify.

This is an important distinction that sets Finland apart from some other countries, where holding a passive ownership stake in a company can sometimes serve as the basis for a residency application. In Finland, you must be operationally engaged in the business on an ongoing basis.

According to the Finnish Immigration Service, an entrepreneur is someone who runs their own individually-owned business, and that business must be financially viable and generate a regular income that meets or exceeds the applicable collective agreement for their sector. Where no collective agreement exists, income must amount to at least €1,399 per month as of September 2024. You should always confirm the current threshold directly with the Finnish Immigration Service (Migri), as these figures are subject to periodic revision.

It is also worth noting that a residence permit for an entrepreneur will not be granted to so-called “light entrepreneurs” who work through an invoicing service company. This distinctly Finnish arrangement is explained in greater detail below, and grasping the difference between light entrepreneurship and registered self-employment is essential before you take any steps forward.

What are the different self-employment and business structures available in Finland?

Finland provides a range of business structures, each carrying its own rules around liability, taxation, and administrative burden. Selecting the most appropriate structure is one of the most significant decisions you will face at the outset.

Sole Trader (Toiminimi / TMI)
A sole proprietorship, known in Finnish as a toiminimi, is among the simplest and most widely chosen ways to start a business in Finland, and is particularly well suited to solo operators and small-scale ventures. Tax affairs for a sole trader are dealt with through personal income tax rather than a separate corporate filing, making the overall process considerably less complex than running a limited company. That said, the business and the individual are treated as one and the same in legal terms, meaning personal assets are exposed to any business liabilities. This structure is broadly comparable to sole trader arrangements found in countries such as Australia or Ireland, where there is no separation between personal and business finances.

Private Limited Company (Osakeyhtiö / Oy)
For those seeking limited liability protection, the ability to bring in investors, or a clear boundary between personal and business finances, the private limited company (Oy) is the structure most commonly recommended for foreign entrepreneurs. Since 2019, there has been no minimum share capital requirement — a company can be incorporated with €0 — and a flat corporate income tax rate of 20% applies. This is functionally similar to a private limited company (Ltd) in many European jurisdictions or an LLC in the United States, and it provides meaningful protection for personal assets in the event of business difficulties.

General Partnership (Avoin yhtiö / Ay) and Limited Partnership (Kommandiittiyhtiö / Ky)
Businesses can also be structured as a general partnership or a limited partnership. In a general partnership, all partners bear unlimited personal liability. A limited partnership enables a combination of general partners with unlimited liability and silent partners who contribute capital but may not act on behalf of the business. Both structures are used less frequently by newly arrived expats in Finland.

Light Entrepreneur (Kevytyrittäjä)
Light entrepreneurship describes an arrangement in which an individual works for clients in a self-employed capacity but does not establish their own registered business. Instead, they use an invoicing service company to bill clients, with that company handling tax payments on their behalf. This can be a useful way to explore entrepreneurship before committing to a formal business, or to supplement employment or studies with freelance income. However, it does not meet the criteria for an entrepreneur residence permit.

Branch of a Foreign Company
An existing foreign company may enter the Finnish market by establishing a branch rather than a new legal entity. This approach is typically adopted for temporary projects or market-testing purposes, though the parent company remains fully and unlimitedly liable. It is generally not the route taken by individual expat founders starting fresh.

How do you register as self-employed in Finland?

To operate legally as a sole proprietor (toiminimi) in Finland, you must register with both the Finnish Trade Register and the Tax Administration. Completing both registrations is a legal requirement and is what enables you to trade and issue invoices under your sole trader status.

The following steps outline the process. Always confirm the most up-to-date fees and procedures with the Finnish Patent and Registration Office (PRH) and the Business Information System (BIS/YTJ) before you begin.

1. Secure your right to work in Finland. EU/EEA citizens, Nordic nationals, and citizens of Liechtenstein or Switzerland do not require a residence permit but must register their EU right of residence. All other nationals must obtain an entrepreneur residence permit from the Finnish Immigration Service before engaging in any business activity.
2. Choose a business name and verify its availability. Select your trading name and check the Trade Register to ensure it does not conflict with an existing name. Approval must be obtained before using the name on any documentation or signage.
3. Establish whether any licences or permits apply to your activity. Some business types require prior authorisation, inspection, or notification to Finnish authorities. Use the Suomi.fi portal to determine whether this applies to your intended activity.
4. File a start-up notification. Register simultaneously with the Finnish Trade Register and the Tax Administration through the Business Information System (YTJ). Although the forms include English translations, they must by law be submitted in Finnish or Swedish. If you register for tax purposes via OmaVero (the Tax Administration’s online portal), there is no charge; Trade Register registration costs €70 online as of 2024, and adding an auxiliary business name costs a further €70 per name. Confirm all current fees at PRH.fi before submitting.
5. Join the Prepayment Register. All self-employed individuals must enrol in the Prepayment Register. If your annual turnover exceeds €20,000 (as of January 2025), you are also required to register for VAT, though voluntary registration is available below this threshold and may be beneficial for reclaiming VAT on business expenses.
6. Receive your Business ID (Y-tunnus). On completion of your registration, the Finnish Trade Register will issue a unique Business ID. This identifier is used across all dealings with Finnish public authorities and institutions.
7. Open a dedicated business bank account. You should maintain a separate bank account for your business to keep finances organised and to simplify your accounting. Banks generally ask for a Trade Register extract dated within the last three months as part of their onboarding process.
8. Arrange YEL pension insurance. Once your earned income from the business reaches the statutory minimum threshold, Finnish law requires you to take out self-employed person’s pension insurance (YEL) with a Finnish pension provider. Refer to the taxation section below for the current contribution rates that apply.

How do you set up a company in Finland as an expat?

Incorporating a private limited company (Oy) is the preferred path for most expats seeking limited liability, the capacity to attract investment, or a clear legal divide between personal and company finances. Since Finland removed the minimum share capital requirement for private limited companies in 2019 — previously set at €2,500 — it is now possible to found a company with no upfront capital at all, which substantially reduces the financial barrier for overseas founders and early-stage startups.

1. Confirm your residency status first. Non-EEA residents who wish to serve as a board member or managing director must submit a PRH permit application accompanied by certified copies of the company’s founding documents and a passport. Consult Migri.fi for guidance before proceeding.
2. Select and reserve a company name. The name you choose must be unique. Use the Business Information System (BIS) to check that your preferred name is not already in use.
3. Identify any applicable licences. Visit the Suomi.fi Business Licences portal to determine whether your planned activities require any form of regulatory approval or permit.
4. Prepare the founding documents. You will need to draw up the Articles of Association and Minutes of the Founding Meeting, along with a Memorandum of Association and passport copies for all founders, board members, and the designated managing director.
5. Appoint your management team. Finnish company law requires at least one board member to be resident within the European Economic Area (EEA). If your entire founding team lives outside the EEA, you will need to apply to the PRH for a special exemption — a hurdle that frequently catches international founding teams off guard.
6. Submit the start-up notification (Y form). File the Y form to register simultaneously in the Trade Register and the relevant tax registers. You must also declare any beneficial owners — defined as individuals holding more than 25% ownership or control. Once processed, you will receive a Business ID (Y-tunnus) for use in all official matters.
7. Open a business bank account. The account-opening process can take anywhere from a few days to several weeks depending on the institution and your company’s circumstances. You will need your registration certificate and identity documents, and banks will conduct anti-money laundering checks, which can take additional time for founders with no established Finnish credit history.
8. Register for VAT and other relevant tax registers. From January 2025, businesses with annual turnover of €20,000 or less are not obliged to register for VAT. Once your turnover surpasses that figure, registration becomes mandatory and you must include VAT on invoices and submit regular returns. Check current thresholds at Vero.fi.

For authoritative guidance on company registration, refer to the Finnish Patent and Registration Office (PRH) and the Business Information System (YTJ). The Business Finland portal also offers free advisory services and detailed step-by-step support for international founders.

Can you work as a digital nomad in Finland?

Finland has not introduced a dedicated digital nomad visa of the kind offered by countries such as Portugal or Estonia. Location-independent workers instead have several different options depending on their individual circumstances and intended length of stay.

Short stays (up to 90 days): Under the standard Schengen entry rules, visitors may remain for up to 90 days within any 180-day period. This cannot be extended, and you must wait for the 180-day window to reset before returning. Whether working remotely for a foreign employer or clients during a Schengen tourist entry is permissible remains legally ambiguous in Finland as it does across most of the Schengen area — if you are uncertain, it is worth seeking professional legal advice before proceeding.

Self-employment visa / Entrepreneur Residence Permit: Rather than a purpose-built digital nomad route, Finland issues a self-employment visa with a validity of twelve months or longer for individuals operating as freelancers, consultants, or entrepreneurs. This permit allows qualifying self-employed individuals who own or are active partners in a registered business to remain in Finland for up to six months, with the option to renew. It represents the most realistic long-term pathway for self-employed remote workers, though it does require you to establish a registered Finnish business and to be genuinely working within it.

Startup Permit: The Startup Permit is designed for entrepreneurs who have recently founded, or are preparing to found, a business with the potential for international growth. It can be granted for an initial period of up to two years and is renewable. This route is better matched to those building a scalable venture than to individual freelancers or independent consultants.

Holders of both the self-employment and startup visas are required to register a company in Finland and will be subject to Finnish taxation. This is a significant consideration for remote workers who may assume they can simply carry on operating under a foreign business registration.

As regards fees, submitting a residence permit application online costs €490, while applying in person at a Finnish embassy or consulate costs €740. These figures are subject to change — always check the current fee schedule at Migri.fi before applying. Registering your business with the Finnish Trade Register typically takes around three weeks, after which you can submit your visa application. Standard processing times for these permit types are approximately four months.

What taxes and social contributions apply to self-employed expats and business owners in Finland?

Finland operates a thorough but well-documented tax and social contribution system. Unlike standard employment, where an employer manages most deductions automatically, those who are self-employed or running their own company must keep track of several distinct obligations themselves. The national tax authority, Vero.fi, is the definitive source for all current rates and thresholds.

Income tax for sole traders: State income tax is levied on a progressive scale, beginning at zero for income up to €19,900 and rising to a maximum rate of 22.72% on amounts above €85,800 per year. On top of state tax, a municipal tax applies at a rate that varies between 16.5% and 23.5% depending on the municipality in which you are registered as a resident. These figures are as of 2025 — always verify the current brackets at Vero.fi.

Corporate income tax for Oy companies: As of 2025, all company structures in Finland are subject to a flat corporate income tax rate of 20%. While this is broadly competitive within the EU, company owners who draw a salary from their Oy will also be liable for personal income tax on that salary.

VAT (Value Added Tax): From January 2025, businesses with annual turnover of €20,000 or less are not required to register for VAT. Above that threshold, registration is mandatory, and you must charge VAT on your invoices and submit returns to the Tax Administration. Finland’s standard VAT rate is 25.5%, though reduced rates apply to certain categories of goods and services — confirm the current rates at Vero.fi.

YEL pension insurance (self-employed person’s pension): One of the most distinctive aspects of Finland’s system for the self-employed is the YEL insurance obligation. Self-employed entrepreneurs are personally responsible for arranging and paying their own pension insurance. In 2025, the contribution rate stands at 24.10% of confirmed income for individuals under 53 or over 62 years of age. For entrepreneurs aged between 53 and 62, a higher rate of 25.6% applies. Compulsory YEL contributions are triggered once annual earned income reaches €9,208. Insurance must be arranged within six months of starting business activity. As an incentive for new entrants, entrepreneurs receive a 22% reduction on YEL premiums during the first 48 months of their business.

Health insurance contributions: Self-employed individuals in Finland also contribute to the National Health Insurance scheme administered by Kela. In 2025, this encompasses a health insurance contribution of approximately 1.06% and a daily allowance contribution of approximately 1.04% of insured income.

Tax residency and double taxation: Residing in Finland for more than six consecutive months qualifies you as a Finnish tax resident, at which point you become liable to pay Finnish tax on your worldwide income. The double taxation treaty in force between Finland and your previous country of residence determines the precise circumstances under which each jurisdiction can levy tax. Finland maintains an extensive network of such treaties — consult Vero.fi for a current list of treaty countries.

Are there any incentives, grants, or programmes to encourage expat entrepreneurs in Finland?

Finland makes a deliberate effort to attract internationally mobile entrepreneurial talent, and there is a meaningful range of programmes and incentives in place to support this. While this mirrors broader European trends such as France’s Tech Visa or the Netherlands’ DAFT treaty provisions, Finland’s offering stands out particularly for scalable, technology-driven, and innovation-led businesses.

Finland Startup Permit: Launched in 2018, the Startup Permit provides a route for non-EU entrepreneurs to establish and develop their businesses in Finland, opening access to the wider European market. Before applying for the permit itself, you must first obtain a positive Eligibility Statement from Business Finland confirming that your venture meets the programme’s criteria. An initial residence permit under this route can be granted for a period of two years.

From 2026, the required net income thresholds are €1,210, €1,090, or €1,030 per month, depending on your place of residence — see the income table on Migri.fi for the full regional breakdown. These thresholds are revised annually, so always check the current figures before applying.

Fast Track immigration service: Finland’s Fast Track service enables foreign specialists, startup founders, and their family members to receive residence permits within just two weeks. The process is entirely digital and includes real-time updates on application progress. This represents a considerable advantage over the standard four-month processing timeline and is especially valuable for fast-growing companies that need to move quickly.

Business Finland grants and funding: Entrepreneurs in Finland can connect with venture capital and angel investor networks, and can access public grant funding through organisations such as Business Finland. Government grants are available for businesses pursuing sustainable goals, and there are tax incentives tied to innovation activity. Business Finland also administers the Eligibility Statement process for the Startup Permit, making it a natural first port of call for international founders. Visit BusinessFinland.com for current programmes and eligibility requirements.

Finnish Enterprise Agencies (Uusyrityskeskus): A network of 30 Enterprise Agencies across Finland provides free and confidential business counselling to anyone considering starting a business, covering topics such as business planning, setup procedures, and support for entrepreneurs. Advice is delivered in Finnish and Swedish as standard, and English-language counselling is available in larger cities at minimum. In some locations, support in additional languages may also be accessible.

Strong startup ecosystem: As of 2025, Finland’s startup landscape encompasses more than 4,200 startups and 13 unicorns, and the country ranks first in the EU for digital readiness, offering a stable regulatory environment and access to Nordic markets. Helsinki’s Maria 01 campus ranks among Europe’s largest startup campuses, and international events such as Slush draw global investors and founders to the city each year.

What are the practical challenges of being self-employed or running a business in Finland?

Finland is widely regarded as a transparent and digitally advanced place to do business, but expat entrepreneurs do encounter genuine practical challenges that are worth being aware of before committing to the move.

Language requirements in official processes: Although the Business Information System forms include English translations, Finnish law requires that they be submitted in Finnish or Swedish. This creates a real dependency on language support, a bilingual accountant, or a local business adviser for formal filings — a situation quite different from countries where administrative processes are fully available in English. This is one of the most commonly underestimated hurdles for newly arrived foreign entrepreneurs.

Banking access: Opening a Finnish business bank account as a foreign national can take longer than expected. Depending on the bank and the complexity of your company’s structure, the process may take anywhere from a few days to several weeks. You will typically need to present a recent Trade Register extract, company founding documents, and proof of identity, and you should expect anti-money laundering checks to add further time, particularly if you have no existing credit history in Finland. Online-only banking platforms such as Holvi or international multi-currency accounts can serve as a practical interim solution.

YEL insurance complexity: YEL pension contributions are calculated not on your actual earnings but on a “confirmed income” figure that you set yourself. If this figure is set too low, it will reduce both your eventual pension entitlement and access to social benefits; if it is set too high, it will inflate your monthly outgoings. Striking the right balance requires careful consideration, and it is advisable to discuss this with a Finnish accountant or pension specialist.

Tax advance payments: Self-employed individuals and freelancers must submit their annual tax return by 1 April of the following year and are required to make advance income tax payments throughout the year based on projected profit. Underestimating these payments and facing an unexpectedly large settlement at year end is a mistake commonly made in the first year of trading.

EEA residency requirement for sole traders: To obtain a Business ID as a sole proprietor, your registered home address must be within an EEA country. If you are domiciled outside the EEA, you will need to apply to the PRH for permission to operate as a private sector trader. This restriction is frequently overlooked by non-EEA nationals who plan to start out as a sole trader, and discovering it late can cause unnecessary delays.

Professional support: Unlike some countries — such as Spain, where a gestor or notary is a near-mandatory part of the company formation process — Finland does not impose a strict statutory requirement to use a professional intermediary. Nevertheless, engaging a local accountant who has experience working with foreign-owned businesses is strongly recommended. The Finnish system is designed to be fair and predictable, but errors in filing, missed deadlines, or miscalculations of obligations such as VAT or YEL can carry real financial consequences. Many accounting and advisory firms in Helsinki and other larger cities offer services in English and other languages beyond Finnish and Swedish.

Frequently asked questions

Can I be both employed and self-employed at the same time in Finland?

In most cases, yes — it is possible to hold a job with an employer while also running your own business in Finland. However, your employment contract may include clauses restricting secondary activities, particularly if they could give rise to a conflict of interest. You should also ensure that any applicable residence permit allows for dual activity. Both income streams must be declared and reported separately to the Finnish Tax Administration at Vero.fi.

How do I invoice foreign clients as a self-employed person in Finland?

You can bill foreign clients directly using your Finnish business registration details and Business ID (Y-tunnus). For clients based outside the EU, VAT is generally not charged on services, as these are treated as zero-rated exports. For EU-registered business clients, the reverse charge mechanism typically applies, meaning you do not add VAT to the invoice but must note the arrangement on it. Always verify the correct VAT treatment for your particular services with a Finnish accountant or through Vero.fi.

What happens to my business if my residence permit expires or changes?

Because Finland requires you to be actively working in your business — not just owning it — any lapse or change in your permit status may affect your right to continue operating. It is essential to apply for permit renewals well ahead of expiry and to inform the Finnish Immigration Service (Migri) of any material changes to your business activities. While the registered legal entity may continue to exist, you would no longer be entitled to work within it without a valid permit.

Do I need a Finnish personal identity code (henkilötunnus) to register a business?

Yes, registering as a sole proprietor requires you to hold a Finnish personal identity code. You will also need either personal online banking credentials, a mobile certificate, or a microchip-enabled identity card (HST card) to complete the online registration process. A personal identity code is obtained by registering your Finnish address with the Digital and Population Data Services Agency (DVV). For limited companies, the managing director or at least one board member will typically need a Finnish identity code, so arranging this early in the process is advisable.

Is there a minimum income I need to prove for an entrepreneur residence permit?

Your business activity must be genuinely profitable and generate consistent income that meets or exceeds the relevant collective agreement for your sector. In sectors where no collective agreement exists, the minimum income requirement is at least €1,399 per month as of September 2024. For holders of the Startup Permit, the applicable net income thresholds from 2026 are €1,210, €1,090, or €1,030 per month depending on where you reside in Finland. Always verify the latest figures directly with Migri.fi before submitting an application.

Can I register a Finnish company without living in Finland?

Finnish law requires at least one board member of a private limited company (Oy) to be resident within the European Economic Area. If none of the proposed directors fulfil this requirement, an exemption must be sought from the PRH. For sole traders (toiminimi), obtaining a Business ID is conditional on your home address being registered in an EEA country. In practice, attempting to establish and run a Finnish business entirely remotely and without any local presence is both difficult and contrary to the purpose of the entrepreneur and startup permit schemes.

What is the difference between the Startup Permit and the Entrepreneur Residence Permit?

The Startup Permit is intended for those who have recently founded — or are in the process of founding — a business with demonstrable growth potential and scalability. It requires a favourable Eligibility Statement from Business Finland, which evaluates the innovation potential and international ambition of the business idea. The Entrepreneur Residence Permit, by contrast, is aimed at those moving to Finland to operate an established or conventional business and covers a broader range of business types recognised under Finnish law. If Business Finland is unable to issue a positive statement for your venture, the Entrepreneur Residence Permit may still offer a viable alternative pathway. Both routes are described in detail at Migri.fi.

Are there free resources available in languages other than Finnish or Swedish?

Business Finland provides free advisory services and step-by-step guidance in English. The Finnish Enterprise Agency network delivers counselling in Finnish and Swedish as standard, with English support available at minimum in larger urban centres and occasionally in other languages too. The Business Information System (YTJ) and Suomi.fi both offer key information in English. For tax-related matters, the Finnish Tax Administration’s website at Vero.fi is fully available in English.