One minute guide to Finnish Law 2026
Finnish law
Finnish law is based on the civil law tradition. Written laws are the highest source of law, but customary law still plays a notable role in certain areas, such as contract law. Finland is a member of the European Union and bound by its laws, regulations, and directives.
Setting up a Business
Limited liability companies are by far the most common company form in Finland. The Finnish Limited Liability Companies Act sets out the incorporation process and contains the basic provisions on corporate governance. The incorporation process itself is relatively straightforward, and in practice the most time-consuming part of establishing a company is often opening a bank account due to strict anti-money-laundering legislation and practices.
Contracts
The Finnish legal system is based on freedom of contract, and very few contract types have specific form requirements. Finnish contract law is strongly guided by customary law, while the general rules on contracts are set out in the Finnish Contracts Act.
Employment
Finnish employment legislation provides employees with a high level of protection. Finland has strong labour unions and employer associations, which play a significant role in the legislative process. Most employees and companies are covered by collective bargaining agreements.
Startups
Helsinki has consistently been ranked as one of the most attractive startup ecosystems in Europe. To attract international talent, Finland offers a dedicated startup residence permit for non-EU entrepreneurs, granted on the basis of an eligibility statement issued by Business Finland.
Public Procurement
Finland’s public procurement market totals approximately €38 billion annually. The EU procurement directives have been implemented through three separate national acts.
Real Estate
Real estate ownership is generally unrestricted. However, acquisitions of real estate may in certain circumstances require a permit if specific criteria applicable to foreign buyers are met. Additionally, real estate and land ownership in the autonomous region of Åland are restricted to holders of the Åland right of domicile (hembygdsrätt). The acquisition and registration of real estate and liens on real estate are regulated in the Code of Real Estate and in the Act on Transfers of Real Estate Requiring Special Permission. Real estate sales agreements are subject to specific form requirements.
Intellectual property rights (IPR)
The Finnish legal system provides comprehensive protection for intellectual property rights, and Finland is a party to most major international IPR conventions. Copyright arises automatically without registration, whereas industrial property rights (such as patents, utility models, registered designs, and registered trademarks) require registration. Trademark rights may also arise through establishment. IPR-related civil litigation and registration appeals are centralised in the Market Court and IPR-related criminal cases are handled by the district courts.
Marketing
Finland has well-developed consumer protection legislation. In addition, certain business areas — such as gambling, tobacco, alcohol, and pharmaceuticals — are subject to specific restrictions on sales and marketing.
Dispute Resolution
In Finland, disputes are resolved primarily in independent state courts. The general court system has three tiers: district courts, courts of appeal, and the Supreme Court. There are also certain specialised courts, such as the Market Court, which handles competition, public procurement, market law, and civil IPR matters. Finland is an arbitration-friendly jurisdiction and has ratified the New York Convention without reservations. The Finland Arbitration Institute of the Finland Chamber of Commerce is the leading arbitral institution in Finland, and the majority of international arbitrations seated in Finland are governed by its Arbitration Rules.
Tax
The corporate income tax rate is currently 20 % and the Government has decided to lower it to 18 % as of 2027. Individuals staying in Finland for more than six months are treated as tax residents and are liable to pay tax in Finland on their worldwide income. Foreign key employees may benefit from a favourable flat-rate withholding tax of 25 % (reduced from 32 % as of 2026), provided that certain requirements are met. The regime has also been extended to returning Finnish citizens on a time-limited basis.
Business Culture
Finnish business culture is characterised by directness, punctuality, equality and trust. Meetings start and end on time, communication tends to be concise and agreements are reliably honoured. These qualities, combined with the broader Nordic emphasis on transparency and long-term relationships, make Finland a straightforward jurisdiction to do business in.
The purpose of this “one-minute guide” is to give a very brief introduction to Finnish law only, based on the legislation as of 2026. It cannot substitute legal advice.
