7th September 2018
Finland has certainly seen its share of news coverage in recent months as debates rage around the country’s economic future and long term financial stability. However, while these arguments continue there is one undeniable fact: there’s a huge skills shortage in this location – and businesses are turning to international contractors for support.
Lack of available talent
Reports from the Confederation of Finnish Industries (EK) revealed at the end of last month that businesses in the country are struggling to source the required talent, with 67% of respondents stating that they have faced considerable to moderate difficulties finding skilled workers. The study revealed that much of these shortages are being felt due to a lack of occupational skills and relevant levels of qualifications in applicants.
In light of this talent-short environment, it is perhaps unsurprising that we’ve noticed a significant (89%) uptick in contractor numbers in the country year-on-year to July 2018. While this demand has been noted across various sectors, it has been particularly prevalent in the technical and engineering fields.
For contingent workers, it is important to note that there is a clear preference to operate under an employed solution in the country, with 70% choosing this option. This is perhaps unsurprising, though, when we factor in that self-employed contractors will be subject to social security payments levied at 23% of their taxable income.
What you need to know
As we mentioned in our contractor guide earlier this year, there are a number of considerations that professionals need to be aware of when seeking a move to this country. For example, your tax payments will be 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 the location. Of course, partnering with an expert in international tax law is without a doubt the safest way to ensure you remain compliant in your chosen destination – speak to our team today.