Last year a total of 247 foreign establishments came to Finland – dropping to 2019-level numbers. In addition to new investments, there were 135 further investments made by foreign-owned companies that are already operating in Finland.

"Uncertain times are reflected in slowing down investment flows, and in Finland the situation reflects the international trend. Globally, the number of acquisitions decreased by 16% and greenfield investments by 6% last year. In Europe as a whole, with the exception of the Netherlands and Luxembourg, investment flows weakened. Mainly, the decrease is due to the decrease in the number of acquisitions", says Antti Aumo, Head of Invest in Finland.

Most new foreign direct investments came from Sweden, the United Kingdom and Norway. The United States dropped from the top three to fifth place.

The Invest in Finland team supports foreign companies to flourish in Finland

Foreign direct investments are an important part of the growth of the Finnish economy and the development of business life and ecosystems. Foreign-owned enterprises generated EUR 130 billion in turnover in 2022. According to Invest in Finland's estimate, these companies brought a total of more than EUR 1.7 billion to Finland in the form of corporation tax alone.

"Foreign direct investments have a significant impact on the Finnish economy. Foreign enterprises account for about one per cent of all enterprises operating in Finland, but they still employ as much as 16 per cent of the private sector workforce. Foreign-owned companies also actively contribute to Finnish exports. According to Finnish Customs' data, the total exports of foreign-owned companies accounted for approximately 39 per cent of all exports in 2022, i.e. approximately EUR 32 billion", Aumo sums up.

According to the OECD, the investment stock of foreign investment in Finland compared to GDP was 29%, while the EU average was 71%, so there is still plenty of room for new foreign investment.

In 2023, the Invest in Finland team supported 33 new investments to Finland – valuing 414M€ and creating over 700 new jobs. In additon, the team proactively contacted over 500 companies and organized 68 first visits to Finland.

THE 2024 outlook FOR FDI IS better

According the Ministry of Finance, the Finnish economy will start to grow due to slowing inflation and a fall in interest rates and growth will strengthen in 2025. The fall in interest rates will support investments. Especially green transition investment pipeline is strong.

Finland has one of the best business environments in the world. There are a lot of business opportunities to foreign companies – ecosystems and expertise that Finland has to offer.

Finland's strengths include: predictable operating environment, skilled and affordable workforce and pioneering, especially in sectors requiring technology and digitalization, as well as affordable, clean and reliable electricity.

The smoothness of landing processes, like environmental permitting and immigration processes as well as banking services for foreign companies can be further improved and efforts are continually being made in this regard.

Positive developments have taken place in residence permitting and in a national programme to attract international talent. Especially in the migration flows of labor force, their families, and foreign students to Finland, the number of permits reached historically high levels in 2023. Furthermore, more people than ever expressed a desire to continue living in Finland. A total of 43,961 applications for extended permits were submitted.

The current Government Programme includes a decision to reform and streamline the environmental permitting process. The Ministry of the Environment has started the initiative for a streamlined national permit, guidance, and supervision model with a single state environmental authority. This model aims to simplify permit procedures. The aim is that the new authority could get started 1 January 2026.