One of the ways to migrate and have a better life is to invest in Finland, which can help you have a safe and secure environment for living alongside your residency in this country. Moreover, considering Finland’s stable economy, your capital is less likely to face serious problems. In this article, we will discuss the benefits of investing in Finland.
How is investing in Finland?
In recent years, the global COVID-19 pandemic has affected economies worldwide, and Finland is no exception. In 2020, Finland’s Gross Domestic Product (GDP) decreased by approximately 2.8 percent. However, even though Finland’s economy has slowed down, it has still demonstrated good performance during this crisis. In 2021, the country experienced significant economic growth, and this economic growth is expected to continue into the years 2022 and 2023.
Finland continues to provide a stable and predictable business environment. Mostly due to the COVID-19 pandemic, the restaurant and hospitality industry experienced the most significant changes. Additionally, the construction sector has continued to grow at a slow pace, and exports have weakened. Nevertheless, the Finnish government has employed various solutions to address these challenges. The government assisted businesses and, through investments, helped rescue numerous enterprises. These efforts have allowed the Finnish government to place this country among those that have sustained the least economic damage.
On a global scale, Finland is also one of the most digitally advanced countries in the world and has a highly industrialized, knowledge-based economy that is open to globalization and investment. Finland ranked first in the Digital Economy and Society Index (DESI) last year. Seventy-six percent of the population has at least basic digital skills, which is significantly higher than the European Union average of 57 percent. This demonstrates the country’s advanced nature.
Both Finland’s economy and the Finnish government are stable and predictable, and companies and citizens alike trust both. These factors make investing in Finland a good choice.
Some of the advantages of Invest in Finland include:
- Investment conditions for both Finns and foreigners are the same, which is a significant advantage.
- There is a large pool of skilled professionals in various fields.
- Finland has economic stability.
- The Finnish government provides substantial assistance to investors and offers loans, especially in specific situations.
Which industries have the most potential for investment?
Finland is currently one of the wealthiest countries in the European Union. Until the end of World War II, the lives of most Finns were primarily supported by agriculture. After that, a modern industrial sector developed within 20 years, even though one cannot ignore the significant claims compensating for the extensive damage done to the Soviet Union. This industry encompassed electricity, petrochemicals, mechanical engineering, vehicle construction, and shipbuilding, which contributed to substantial growth in Finland’s Gross Domestic Product.
When the Soviet Union disintegrated in 1991, Finland’s economic boom suddenly ended. Unemployment reached 18.4 percent in 1994. At that time, the government privatized many state-owned companies and invested heavily in technology. Nokia was the first Finnish company to become a global brand. Finland joined the European Union in 1995 and stabilized its economy.
Finland has considerable growth potential in many specialized sectors, including the economy, the food industry, and photonics. This growth is also expected to continue in mining and exploration, while projects related to environmental effects and geothermal energy research are in progress and are expected to experience significant growth in the following years. Last year, the third-largest forest industry company in Finland, Metsä Group, invested approximately 1.6 billion euros in a new paper pulp factory in Kemi, northern Finland. This is the largest investment made by the national forestry industry so far. The previous record was also held by Metsä Group, with a factory in Äänekoski starting operations in 2017, costing approximately 1.2 billion euros.
The best industries for Invest in Finland include:
- Technology and innovation
- Wood and forest industries
- Biotechnology
- Healthcare
- Chemical industries
- Communication
Wood and Paper Industry in Finland
In the most forested country in Europe, wood has always been the most important raw material. Even in this age of technology, the wood and paper industry remains a significant part of Finland’s economy. The wood and paper industries still constitute a considerable part of Finland’s exports, and Finnish companies are among the largest forest industry companies globally.
Tourism in Finland
Tourism in Finland has significantly increased in recent years. About one-fourth of visitors come from abroad, with most of them being from Russia, Sweden, Germany, and the United Kingdom. The most popular holiday destinations are Helsinki and Lapland in Finland.
Why Invest in Finland ?
Finland’s Helsinki region has recently been designated as the most innovative region in the European Union. The area’s strength lies in its large number of trademark applications and patent registrations, showing that many people are eager to expand their activities in this region. Finland is ranked as the sixth most innovative country in the world and continues to make further progress each year. Despite the progressive nature of Finland, you might wonder why you should choose to invest in Finland.
Investment Area for Further Growth
Helsinki is a gateway to other markets in the European Union and around the world. Its status as the capital of Finland makes it an optimal strategic investment location. Furthermore, you can travel by train between Helsinki and St. Petersburg in just three and a half hours.
Reliable Investment
Finland is economically and politically stable and predictable. In fact, Finland has maintained its position as one of the most peaceful and stable countries globally for almost a decade. The stability of the investment market in Finland will assure you that you won’t incur significant losses by investing capital in the country.
Skilled Workforce
Over one-third of the workforce in Helsinki holds a higher education degree. The University of Helsinki is among the top universities globally, with three out of every four Finns speaking English. Moreover, almost half of the Finnish population speaks two additional languages besides Finnish, one of which is English. Finland is also one of the most literate countries in the world, and its educators are among the best instructors globally. All these attributes result in you engaging with an educated and skilled society that provides ample opportunities for learning and honing your skills.
Famous Global Startup Scene
Helsinki’s startup scene is dynamic, beneficial, and enthusiastic. International companies, investors, and media representatives gather annually at the Slush event to discuss various topics. Helsinki is currently ranked fourth among fast-growing startup ecosystems (Global Startup Ecosystem Report 2020), and the Helsinki Metropolitan Area, especially in terms of financial support and skilled workforce, has performed well.
Safe and Family-Friendly
Finland is a country that families adore. Daily life in this country is comfortable and highly secure. Your children can go to school with their friends, and you can go home after having dinner at a restaurant. Government schools and kindergartens in Helsinki are among the best educational facilities globally. Finland’s safety allows you to confidently walk the streets and enjoy a modern, well-functioning society. Quality education, free healthcare, high employment rates, and cost-effective living are the main features of life in Finland. Additionally, Finland is an excellent choice for nature lovers as it offers incredibly pristine landscapes.
Happiest Country in the World
Finland has been repeatedly selected as the happiest country globally, and Helsinki holds the top rank among cities when compared to other cities. One key element of happiness is having economic stability, which means individuals don’t need to worry about basic aspects of life and can live without anxiety, stress, and depression. A positive overall atmosphere in society, trust in the police and authorities, and high welfare levels reduce stress. Hope for life in Finland is among the highest globally, and alongside your sound investment in this country, you can create an excellent life.
Great Affinity for Technology
Finland, especially Helsinki, is an excellent place for technology and entrepreneurship. Helsinki has 87,000 skilled programmers and is home to 500 technology startups. The gaming industry’s name is placed as one of Helsinki’s strengths in the Global Startup Ecosystem Report 2019. Helsinki has been ranked among the top six cities when the European Parliament compared 468 smart city initiatives in European cities. Helsinki is planning extensively for its future in terms of technological advancements and can soon join the ranks of the world’s most advanced cities.
Gender Equality
Helsinki is an excellent place for women. Finland is a global leader in workplace gender equality. In fact, the World Economic Forum ranks Finland among the top three countries globally for gender equality. Finland is consistently ranked among the best countries for being a mother. In the latest State of the World’s Mothers report, Finland ranks second, right after Norway. Finland is the only developed country where fathers spend more time with their school-age children than mothers. Women can engage in activities outside the home and even be successful investors.
Clean Environment
Finland is one of the cleanest countries globally. According to the 2020 Environmental Performance Index, Finland ranks as the best country globally for environmental health. Finland’s top rank is based on air and water quality, public health, and the absence of heavy metals. Nature is everywhere, and it’s an integral part of the daily life of the country’s residents. You can take a bus to the city center and go mushroom picking in the forest after just a few minutes.
Investment Methods in Finland
If you’ve decided to invest in Finland, there are several different methods available to you. The choice depends on individual circumstances.
Investment through Company Registration
The most traditional method of obtaining a visa in Finland through investment is by registering a company, either alone or in collaboration with another individual. Please note that you cannot immigrate by buying shares of an existing company; you must establish your own company.
– Individuals must be at least 18 years old.
– You need to have the minimum capital as determined by the government.
– Family residence is possible after establishing the company.
– Successful investors can apply for permanent residence.
– You must pay your taxes promptly and regularly.
– An individual from an EU member country must be a registered member of the board.
– Submit your business plan when sending your application.
– For investment, you must open a bank account and provide all the necessary forms.
Three General Company Models for Establishment
Generally, there are three models for establishing a company. The first type is a limited liability company, managed by a single individual, and it requires a minimum initial capital of 2500 euros. The second type is a public limited company with four primary members, and it allows for the sale of shares. The third option is establishing a branch of a company that exists in other countries. As a foreigner, you can set up a branch of that brand in Finland.
Investment through Real Estate Purchase
Another common method of investment in Finland is through purchasing real estate. By buying property in Finland, you make an investment and can benefit from the associated advantages. It’s essential to note that purchasing real estate in Finland doesn’t grant you permanent residency. Therefore, if your goal is to obtain permanent residence in Finland, buying property might not be the ideal option for you. However, if you aim to grow your capital, buying property can be a suitable choice.
Investment through Government Bonds
The Finnish government issues government bonds to cover budget deficits or the capital needed for infrastructure projects. Finnish government bonds fall into two categories:
- Returnable Bonds: In this method, you pay a specified amount to the government and receive permanent residency. After five years, the principal amount is returned to the individual, who can then invest it elsewhere.
- Non-Returnable Bonds:As the name suggests, the paid amount is not refunded in this case.
Final Thoughts on Invest in Finland
In general, Finland is an excellent choice for investment. However, one of its challenges is the stringent regulations for granting permanent residency to investors. To acquire permanent residency in Finland, you must present a business plan and demonstrate that your investment will be beneficial for the country. If you require consultation on investment in Finland and other immigration methods, our experts are available to answer your questions.
If you need more information or guidance on applying to Finland, you can contact our experts at the FinlandQ group.
