Incentives to support sustainable growth
Foreign-owned companies operating in Finland are eligible for a wide range of government and EU incentives on an equal footing with Finnish-owned companies. Here you can find a few examples of different kinds of incentives.
Business Aid from ELY Centres
Business aid to companies operating in Finland is coordinated by the Centres of the Economic Development, Transport and the Environment (ELY Centres), whose 15 regional offices provide advisory, training and expert services and funding for investment and development projects.
Also EU finance is largely channeled through the ELY Centres. It is directed to projects developing the competitiveness, know-how and operating environment of the SME sector, with a special emphasis on start-up businesses and service sector companies.
Loans and guarantees by Finnvera
Finnvera is a specialised financing company owned by the State of Finland and it is the official Export Credit Agency (ECA) of Finland. It provides financing for the start, growth and internationalisation of enterprises and guarantees against risks arising from exports.
R&D and Innovation Incentives by Business Finland
Business Finland provides low-interest loans and grants to challenging and innovative projects potentially leading to global success stories. Startups, SMEs and large companies can benefit from Business Finland’s incentives and funding services.
Special tax deductions for companies
Machinery: A business may annually deduct up to 50% instead of 25% of the tax carrying value of newly acquired machinery or equipment in tax years 2020-2025.
R&D deduction: A permanent tax incentive for business enterprises that conduct R&D operations, consisting of a basic deduction (100%) and additional deduction (50%) related to existing R&D costs, and an increased deductible amount that will depend on how much the company’s R&D activity has grown compared to the previous year.
Tax-free shares of non-listed company to employees: If the subscription price is at least equal to the share’s mathematical value, an individual employee who buys such shares will not be treated as having received a taxable benefit.
R&D sub-contracting: A tax deduction of 250% on the costs of research and innovation projects carried out in collaboration with universities and research institutes.