Guidance

Overseas business risk: Finland

Updated 28 June 2023

Information on key security and political risks which UK businesses may face when operating in Finland.

1. Overview

• area: 390,909 sq km
• population: 5.5 million
• capital city: Helsinki – population 650,000 (capital region 1.5m)
• language(s): Finnish 87.9%. Swedish 5.2%. Russian-speaking minority (2%). Small Sami speaking community (0.2%).
• religion: Lutheran 65.1%, No religious affiliation 28.5%, Orthodox 1.1%.
• currency: Euro
• government: Parliamentary republic
• next parliamentary election: 2027
• membership of international groups/organisations: European Union (EU), United Nations (UN), all the organisations of the United Nations family, the Council of Europe (COE), World Trade Organisation (WTO), Organisation for Economic Cooperation and Development (OECD), the Nordic Council, the Barents Euro Arctic Council, the Council of Baltic Sea States and other regional bodies, Organisation for Security and Co-operation in Europe (OSCE). Finland has been a member of NATO since April 2023

2. Politics

2.1 Parliament

The supreme decision-making authority in Finland is exercised by Parliament. The Finnish Parliament is unicameral and has 200 members. The 200 Members of Parliament are elected every four years using a direct proportional system. The next parliamentary elections will take place in 2027.

2.2 Government

Finnish governments tend to be multi-party coalition governments to reach a parliamentary majority. The coalition governments are usually formed by between 3 to 5 parties. The current government was formed in June 2023 by the National Coalition Party (NCP) and consists of the following 4 parties:

• National Coalition Party
• The Finns Party
• Swedish People’s Party of Finland
• The Christian Democrats

2.3 Political priorities

Some of the main issues the government is focusing on includes securing sustainable economic growth and higher employment, further developing the recently implemented reform of healthcare and social services, and different measures to meet the challenges of an ageing population. Finland has implemented legislation that steers the country to achieve carbon neutrality by 2035.

Education and research are a key strategic objectives with the government aiming for 4% investment of GDP in research, development and innovation (as public and private investments combined). The upper age limit of compulsory education is 18. The government supports growth by investments in digitalisation, 5G/6G, sustainability and clean technologies. Low carbon energy solutions and future of mobility are also supported by policies. Attracting more top international talent to Finland is important due to shortage of skilled employees in a fast-ageing society.

In the EU, Finland seeks an active role and wants to support the EU’s unity and external ability to act. Finland is a supporter of a more competitive EU, and supports efforts to boost free trade and the single (and digital) market. Finland remains committed to the single currency and strengthening Economic and Monetary Union. Finland does not, however, actively support further treaty changes and think that integration can be deepened within the existing framework.

Finland is a strong supporter of the international rules-based system and multilateral cooperation. Foreign policy objectives, besides foreign trade, include sustainable development, combating climate change, conflict prevention and crisis management, and promoting human rights and equality. More information on political risk, including political demonstrations, is available in FCDO travel advice.

3. Economics

The largest sector of the Finnish economy is services at 68.7%, followed by industry and construction at 28.6%. The economy is innovation-driven and ranks high in digitalisation. Finland ranks number 1 in Europe in the EU’s Digital Economy and Society Index for 2022.

Finland is highly integrated in the global economy and international trade accounts for more than a third of GDP. The EU accounts for 60% of trade in goods and 50% of trade in services. Main good exports include digital technologies, chemical industry products, pulp and paper, processed metal products, electrical and optical equipment, machinery and vehicles, and increasingly health technology.

Trade in services has grown fast and export of services today is the highest growing area of exports, with approximately 30% of total exports. Digital services are the most important subsector.

Finland retains Aa1 / AA+ credit ratings with a stable outlook from Moody’s, Fitch Ratings and Standard&Poor’s. Finland’s GDP grew by 2.2% in 2022, according to the OECD.

4. Business and human rights

Finland’s constitution encompasses a wide range of civic, political, economic and social rights which aim at ensuring fair treatment and equality for all. Finland ratified the 2 UN-conventions safeguarding these rights, the ICCPR and the ICESCR, in 1966. Discrimination on the basis of age, ethnic or national origin, nationality, language, religion, opinion, health, disability or sexual preference is against the law in Finland.

Finland was the third country in the world to give women voting rights and the first country to elect women into parliament, in 1906. Women are entitled to 105 working days’ paid maternity leave, and either parent can stay at home until the child is 3 years of age with their job secured. The right of every child to receive municipal day care is also protected by law.

Trade union membership has traditionally been common in Finland but at 54.7%, membership is on a downward trend. Unions operate proactively with the employers’ organisations to guarantee overarching agreements of terms and conditions of employment as well as wage levels. Progress towards more locally agreed terms and conditions has been slow, but the trend is towards a reduction in the significance of collective bargaining.

5. Bribery and corruption

Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world.

In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions, which form part of the offence, take place in the UK or elsewhere.

According to Transparency International’s Corruption Perception Index (CPI), Finland was ranked second place of 180 countries in 2022.

The risk and compliance portal provides advice and guidance about corruption in Finland and some basic effective procedures you can establish to protect your company from them. Read also the information provided on our bribery and corruption page.

6. Terrorism threat

There is a low threat from terrorism. You should be aware of the global risk of indiscriminate terrorist attacks, which could be in public areas, including those frequented by expatriates and foreign travellers. Please read the information provided on our terrorism threat page.

7. Protective security advice

Crime levels remain relatively low. The tourist season attracts pickpockets in crowded areas. You should observe sensible precautions such as keeping your personal belongings, including passports and money, secure.

Read the information provided on our protective security advice page.

8. Intellectual property

Intellectual property rights are territorial, ie they only give protection in the countries where they are granted or registered. If you are thinking about trading internationally, then you should consider registering your IP rights in your export markets. For information on obtaining a patent in Finland, you should contact:

Finnish Patent and Registration Office
Sörnäisten rantatie 13 C
00530 Helsinki
Finland
Tel 00 358 29 509 5000

Website: Finnish Patent and Registration.

8.1 The Finnish Patent and Registration Office works closely with the following international organisations:

• the World Intellectual Property Organization WIPO
• the European Patent Organisation
• European Union Intellectual Property Office

Please read the information provided on our intellectual property page.

9. Department for Business and Trade (DBT) Contact

Please contact DBT Helsinki for for any general enquiries or business risk concerns.

10. Useful links

• FCDO travel advice for Finland
• exporting to Finland guide