Company Formation & Tax in Finland
A digital-first EU base with one of the Nordics' lowest corporate rates — the Oy, registration via PRH, VAT, and a rate cut on the horizon.
Finland combines EU single-market access with a highly digital administration and a flat 20% corporate tax — and that rate is set to fall further. With no minimum capital for a private company and no business property tax, it suits remote founders and international entrants wanting a credible Northern European base.
Choosing an entity
The standard vehicle is the Oy (osakeyhtiö, private limited company), which has no mandatory minimum share capital. Larger and listed businesses use the Oyj (public limited, minimum €80,000). Registration runs through the PRH (Finnish Patent and Registration Office), which issues a Business ID (Y-tunnus) via the Business Information System; the company then registers with the Tax Administration (Vero). At least one board member is required, and the board and managing director must be EEA-resident unless PRH grants permission.
Corporate tax and VAT
| Tax | Rate |
|---|---|
| Corporate income tax — 2026 | 20% (falling to 18% from 2027) |
| VAT (ALV, standard) | 25.5% |
| VAT (reduced) | 13.5% (food, restaurants, books) / 10% (press) |
Corporate income tax is a flat 20% on worldwide income — one of the lowest in the Nordics — and the government has announced a reduction to 18% from January 2027. VAT (arvonlisävero, ALV) is 25.5% standard (raised in late 2024), with a reduced rate of 13.5% on food, restaurants, books, accommodation, medicines and passenger transport (lowered from 14% on 1 January 2026) and 10% on newspapers. VAT registration is required above €20,000 of turnover.
Compliance
Companies file annual financial statements with PRH and corporate tax returns with Vero, and submit VAT returns monthly or quarterly. Registering for the Prepayment Register at formation is strongly advisable — without it, clients paying the company must withhold tax, creating administrative friction.
Frequently asked questions
What is the corporate tax rate in Finland?
A flat 20% for 2026, with a reduction to 18% announced from January 2027.
How much capital do I need for an Oy?
None — there is no mandatory minimum share capital for a private limited company.
What is the Finnish VAT rate?
25.5% standard, with reduced rates of 13.5% and 10%; registration is required above €20,000 turnover.
Do I need an EEA-resident director?
The board and managing director must be EEA-resident unless PRH grants permission for non-residents.
Official sources
- PRH (Finnish Patent and Registration Office)
- Vero (Finnish Tax Administration)
- Business Information System (YTJ)
This guide is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; rates and thresholds change. Confirm against Vero, or with an advisor, before acting.
Establish in Finland ahead of the 2027 rate cut.
ARM Management advises international founders on Finnish entity formation, registration and tax positioning, alongside wider EU structuring. Begin with a confidential conversation.