Living and Working in Finland as an Entrepreneur

Thanks to its growing startup ecosystem, supportive government policies, and exceptional quality of life, Finland has become one of Europe’s most attractive destinations for entrepreneurs. It doesn’t matter if you’re launching a tech startup, building a sustainable business, or bringing innovative ideas to life, Finland offers a unique environment that blends cutting-edge innovation with a deep respect for work-life balance, sustainability, and social well-being.

In this guide, we’ll explore everything entrepreneurs need to know about living and working in Finland — from the cost of living and cultural insights to navigating the business landscape and learning from real-life success stories.

Cost of Living in Finland

Living and working in Finland as an entrepreneur requires a clear understanding of the cost of living, which encompasses housing, utilities, transportation, groceries, dining, healthcare, and education. 

Here’s a detailed breakdown based on the most recent data available:​

1. 🏠 Housing: Rental and Property Purchase Costs

• Rental Costs: In major cities like Helsinki, the average monthly rent for a one-bedroom apartment in the city center is approximately €789, while outside the city center, it’s around €646. For a three-bedroom apartment, rents average €1,355 in the city center and €1,031 outside.
• Property Purchase Costs: As of the latest data, the average price per square meter to buy an apartment in the city center is approximately €5,000, and around €3,500 outside the city center.

2. ⚙️ Utilities and Services

• Basic Utilities: Monthly utilities, including electricity, heating, cooling, water, and garbage collection, typically range from €100 to €200 for a one-bedroom apartment. ​
• Internet Services: High-speed internet services cost between €20 to €40 per month. ​

3. 🚌 Transportation Costs

• Public Transportation: A monthly public transport pass in cities like Helsinki costs approximately €60. ​
• Private Vehicle Ownership: The average price of gasoline is around €1.60 per liter. ​

4. 🥦 Groceries and Dining

• Groceries: Monthly grocery expenses for a single person are estimated at €250. ​
• Dining Out: A meal at an inexpensive restaurant typically costs around €14, while a three-course meal for two at a mid-range restaurant averages €60. ​

5. 👩‍⚕️ Healthcare and Education

• Healthcare: Finland offers a high-quality healthcare system, primarily funded through taxation, ensuring services are affordable and accessible.
• Education: Education from pre-primary to higher education is free of charge in Finland. ​

Quality of Life in Finland

In 2025, Finland ranked 1st in the World Happiness Report for the 7th consecutive year, with a score of 7.74 out of 10, consistently placing the country among the top globally for quality of life — driven by its exceptional work-life balance, low crime rate (ranking among the top 5 safest countries globally), comprehensive social welfare programs, and strong public trust in institutions.

Here’s an in-depth look at these factors:​

1. 💼 Work-Life Balance

Finland strongly emphasizes balancing professional and personal life, leading to high levels of employee satisfaction. Key aspects include:​

• Working Hours: Finnish employees work an average of 34.43 hours per week, which is below the average of 39.19 hours among the top 60 GDP countries. 
• Annual Leave: Employees are entitled to 36 days of paid leave annually, including public holidays, promoting ample rest and personal time. ​
• Parental Leave: Finland offers generous parental leave policies, supporting a healthy balance between work and family life.​

2. 🛟 Safety and Cleanliness

Finland is renowned for its low crime rates and high environmental standards:​

• Safety: The country ranks highly on the Global Peace Index, reflecting its safe living conditions.
• Environmental Quality: With a strong commitment to environmental sustainability, Finland boasts excellent air and water quality. ​

3. Social Services

The Finnish welfare system provides comprehensive support to its residents:​

• Healthcare: Finland operates a universal government-funded healthcare system, ensuring all residents have access to necessary medical services. ​
• Education: Education is free from daycare to university, reflecting Finland’s commitment to accessible and high-quality learning opportunities. 

4. Happiness Index

Finland consistently holds the top position in global happiness rankings:​

• Global Happiness Ranking: For the 7th consecutive year, Finland has been ranked as the world’s happiest country, scoring 7.74 out of 10. ​
• Contributing Factors: This high level of happiness is attributed to a strong sense of community support, trust in the government, and the freedom to make life choices. ​

Cultural Aspects of Finland

Finland’s culture blends deep-rooted traditions with modern innovation, creating a unique environment that values equality, nature, and personal space. Understanding Finland’s cultural norms can enhance both your professional and personal experiences. ​

🔠 Language

The Role of Finnish, Swedish, and English in Business.

• Finnish: As the majority language, Finnish is spoken by approximately 85.7% of the population as of 2022.
• Swedish: Swedish holds official status and is spoken by about 5.2% of Finns.
• English: English proficiency is widespread, with at least 70% of Finns able to speak the language.

In business settings, English is commonly used, especially in international companies and urban areas.​

🗣️ Social Norms

Finnish Communication Styles and Etiquette.

• Communication: Finns value honesty and directness, often speaking plainly and avoiding exaggerated expressions.​
• Punctuality: Being on time is crucial in both professional and social contexts, reflecting respect for others’ time.​
• Privacy: Personal space and privacy are highly regarded; unsolicited intrusions are uncommon.​

💆‍♀️ Traditions 

Significance of Practices Like Sauna Culture and Seasonal Festivals:

• Sauna Culture: Integral to Finnish life, saunas are places for relaxation and socialization. It’s customary to enjoy a sauna at least once a week, often on Saturdays. ​
• Seasonal Festivals: Finns celebrate various festivals, such as Midsummer (Juhannus), marking the summer solstice with bonfires and gatherings, and Christmas, which includes unique traditions like the declaration of Christmas Peace in Turku.​

🥗 Cuisine

Introduction to Traditional Finnish Foods and Dining Customs.

• Traditional Foods: Finnish cuisine features dishes like rye bread, Karelian pasties (rice-filled pastries), salmon soup, and reindeer meat.​
• Dining Customs: Meals are typically simple and hearty. Coffee is a significant part of Finnish culture, with Finland having one of the highest coffee consumption rates globally.

Integration into Finnish Society

Settling into Finland goes beyond understanding the business environment — it’s about embracing the culture, building relationships, and becoming part of the community. Successful integration can open doors to both personal fulfillment and professional opportunities. Here’s how to actively engage with Finnish society and maximize your experience.

🌐 Networking

Building Professional Relationships Within the Finnish Business Community.

• Approach: Finns appreciate professionalism and reliability. Building trust is essential, and while initial interactions may seem reserved, relationships strengthen over time.​
• Networking Events: Participating in industry-specific events and seminars can facilitate connections. Organizations like the Hanken School of Economics offer networking platforms.

🤝 Community Engagement

Opportunities for Social Involvement and Cultural Immersion.

• Local Clubs and Organizations: Joining local clubs, such as sports teams or hobby groups, provides avenues to engage with the community.​
• Volunteering: Engaging in volunteer work is a meaningful way to contribute to society and meet new people.​

👅 Language Learning 

Resources and Benefits of Learning Finnish or Swedish.

• Resources: Numerous language courses are available through universities, community colleges, and online platforms.​
• Benefits: Proficiency in Finnish or Swedish enhances social integration and expands professional opportunities, especially in sectors where local language skills are advantageous.

Navigating the Business Landscape in Finland

​Navigating Finland’s business landscape requires understanding legal requirements, leveraging support systems, and identifying market opportunities.

⚖️ Legal Requirements in Finland 

• Business Registration: Entrepreneurs must register their businesses with the Finnish Trade Register. The process involves selecting a company form (e.g., sole proprietorship, limited liability company) and submitting necessary documentation.​
• Taxation: As of September 1, 2024, Finland’s standard VAT rate increased to 25.5%. Additionally, from January 1, 2025, the reduced VAT rate was raised from 10% to 14%, affecting goods and services such as food products, restaurant services, and non-alcoholic beverages. The VAT registration threshold for small businesses also increased from €15,000 to €20,000.
• Compliance: Businesses are required to file VAT returns electronically via the OMAVERO and Suomi.fi portals. The frequency of filings depends on annual turnover: monthly for turnovers exceeding €100,000, quarterly for turnovers between €30,000 and €100,000, and annually for turnovers below €30,000.

🆘 Support Systems

Government Programs and Organizations Aiding Entrepreneurs.

• Business Finland: This public organization under the Ministry of Employment and the Economy offers funding for research, product development, and various business development needs, especially targeting small and medium-sized enterprises. In 2025, Business Finland opened a funding call for large clean transition investments, allocating €400 million to support industrial projects to decarbonize production processes and enhance energy efficiency.
• Finnish Startup Permit: Designed for innovative startup founders from outside the EU, this startup visa allows entrepreneurs to establish scalable businesses in Finland. Applicants must have a startup team of at least two founders, an innovative business plan, and sufficient resources for early-stage development.

📈 Market Opportunities

Thriving Industries and Consumer Behavior in Finland.

• Technology and Innovation: Finland’s commitment to research and development is evident through the Act on Research and Development Funding, which came into effect at the start of 2023. This act supports the government’s target of allocating 4% of GDP to R&D activities, fostering a robust environment for tech startups and innovative enterprises.
• Sustainable Solutions: Finland strongly emphasizes sustainability and offers opportunities in industries focused on clean energy, circular economy, and environmental technologies. Government initiatives and funding programs support projects that align with the transition to a climate-neutral economy. ​

Personal Experiences in Finland

Finland’s vibrant startup ecosystem has seen the rise of companies like Wolt, a rapidly expanding food delivery service, which was acquired by DoorDash in 2021 for approximately €7 billion, making it one of the largest startup acquisitions in Finland’s history. Such success stories highlight the potential for growth within Finland’s supportive business environment.

1️⃣ Case Study: Supercell – A Global Gaming Powerhouse

Founded in 2010 in Helsinki, Supercell quickly became one of the world’s most successful mobile game developers, producing global hits like Clash of Clans and Clash Royale. By 2025, Supercell’s games had collectively earned over €11 billion in lifetime revenue. The company’s success is often attributed to Finland’s strong gaming talent pool, its culture of creative freedom, and government support for the gaming industry through organizations like Business Finland.

2️⃣ Case Study: Oura – Pioneering HealthTech

Founded in 2013, Oura Health became a leader in wearable health technology with its Oura Ring, a smart ring that tracks sleep, activity, and overall health metrics. By 2025, Oura had sold over 2 million rings globally and secured partnerships with NHL teams, the NBA, and leading research institutions. Finland’s strong research environment, particularly in healthtech, and public-private cooperation played a key role in Oura’s rapid scaling.

3️⃣ Case Study: ICEYE – Revolutionizing Satellite Imaging

Founded in 2014, ICEYE is a Finnish space technology startup specializing in synthetic-aperture radar (SAR) microsatellites, allowing near real-time imaging regardless of weather or light conditions. By 2025, ICEYE had launched over 30 satellites and was valued at over €1 billion, working with governments, insurers, and emergency responders worldwide. Finland’s focus on deep tech innovation and R&D incentives provided fertile ground for ICEYE’s development.

4️⃣ Case Study: Swappie – Sustainable Electronics Success

Founded in 2016, Swappie is an online platform for buying and selling refurbished smartphones. By 2025, Swappie was present in over 15 European markets and had processed over 4 million devices, reducing electronic waste while offering affordable smartphone options. Finland’s green transition policies and circular economy initiatives strongly aligned with Swappie’s mission, helping the company secure funding and partnerships.

5️⃣ Case Study: Relex Solutions – Supply Chain Optimization Leader

Founded in 2005, Relex Solutions has become a global leader in AI-driven supply chain optimization software, serving retailers and brands worldwide. In 2025, Relex raised additional funding, pushing its valuation above €5 billion. Finland’s focus on data-driven innovation, combined with its tech talent pool, has been a key enabler of Relex’s success.

💪 Challenges and Solutions

Common Obstacles Faced by Newcomers and Strategies to Overcome Them.

• Navigating Bureaucracy: Understanding local regulations and administrative procedures can be challenging. Engaging with local advisors or utilizing services from organizations like Business Finland can provide guidance and streamline processes.​
• Cultural Integration: Building relationships within the Finnish business community requires understanding local customs and communication styles. Participating in networking events and joining local business associations can facilitate smoother integration.

Role of Launchroad in The Seccess of Your Startup Visa

LaunchRoad is your trusted partner for starting a business abroad. We guide you in choosing the right country, understanding visa requirements, and getting your startup off the ground. As an experienced startup visa consultant, we offer expert startup visa consultation to help you navigate the complexities of international expansion. Our team provides the support, mentorship, and resources you need to succeed in the global market.