12th March 2018
Here at 6CATS International our team of experts have a global wealth of knowledge that contractors can hugely benefit from. And we don’t like them keeping this to themselves, so we want to share some of this information with you in a regular segment on our blog.
For the first piece, we take a closer look at contracting in Finland.
A wealth of opportunities
Finland has certainly had its share of positivity recently as its growth momentum rapidly gains speed. And the future is looking bright too: according to the central bank’s forecast, GDP will grow 2.5% in the next year and 1.5% in 2019 and 2020. However, the country is subject to significant skills shortages, with the generation gap being particularly felt at the moment – a fact that opens up numerous opportunities for contractors seeking that perfect project overseas.
Finland is also a breeding ground for innovation. For example, last year one of its municipalities, Sysmä, announced plans to trial its very own digital currency. The country is also known for its out-of-the-box, but highly effective education system. Having moved from the usual evaluation-driven model and ensured greater incorporation of tech into the classroom, the Finnish education system has consistently ranked highly in global league tables.
Use innovations – and those yet to come – make Finland a great place for contractors seeking new and exciting opportunities.
Contracting in Finland: the legal bit
Clearly prospects are rife in the country, but what do you need to know when making a move to Finland? Here are a few key requirements:
- While EU nationals don’t currently need a work permit when relocating, UK residents may find this changes following Brexit
- Be aware that tax is split in two: State tax, with a top rate of 31.75%, and Municipal tax that ranges from 16.5% to 22.1% depending on your location
- Self-employed contractors are subject to social security payments levied at 23% of their taxable income
- You will need a fixed address in the country in order to register with the local office – the Maistraatti – which you have to do within a week of your arrival. You will then be issued with a Finnish social security and tax number
- When your placement ends, you will be required to de-register via a letter to local authorities.
Let us help you
The above is merely a brief overview of the key compliance factors when seeking work in Finland. As with many destinations, tax and legislative requirements are not only complex, but also subject to regular changes.
In order to stay on the right side of the law and steer clear of possible fines or even criminal sanctions, it’s advisable to use a fully compliant contractor management organisation. Speak to our team today to find out why we are the leaders in this field: