Work for a Finnish Company Remotely: Your 8 Biggest Queries Answered

As remote work becomes an enduring part of modern employment, many professionals and employers are exploring flexible cross-border arrangements. Finland, with its advanced digital infrastructure, strong labor protections, and balanced work culture, is among the most progressive nations today in supporting remote workers. However, if you’re thinking about working for a Finnish company remotely from abroad, or if your employee is relocating internationally, understanding the legal, tax, and compliance implications is crucial.

This guide answers the 8 biggest questions about remote work with Finnish employers, explaining how Employer of Record (EOR) solutions simplify the process for both employees and companies.

Can I Work for a Finnish Company Remotely from Overseas?

Yes, it’s increasingly possible to work remotely for a Finnish company while living abroad. Finnish employers have embraced flexible work models, and Finland consistently ranks among Europe’s most digitally advanced and globally integrated economies.

However, working across borders adds legal, tax, and compliance layers that both sides must understand. Whether you remain a Finnish tax resident or become subject to foreign tax laws depends on where you physically perform your work.

Legal and Tax Implications of Working Abroad

If you live and work outside Finland for more than 6 months, you typically become a non-resident for Finnish tax purposes. That means you’ll owe income tax in your country of residence rather than in Finland.

Finland has double taxation treaties (DTAs) with more than 70 countries, preventing you from paying tax twice on the same income. These treaties determine which country has the primary taxing rights based on where the work is performed, your residency, and how long you’ve been abroad.

From an employer’s side, Finnish companies must ensure they don’t create a “permanent establishment” (PE) in the host country, meaning a taxable business presence triggered by the remote employee’s location. PE risk can be minimized through EOR partnerships, which legally employ the worker in their country of residence while the Finnish company continues to manage day-to-day work.

How Finnish Employment Law Affects Remote Workers

Finland’s labor legislation, including the Employment Contracts Act, the Working Hours Act, and the Annual Holidays Act, ensures employees receive fair terms, clear working hours, and statutory leave.

However, once an employee starts working abroad, local labor law in the host country often takes precedence. That means holiday entitlements, termination procedures, and benefits may shift to align with local regulations.

If the employee remains on a Finnish contract while living abroad, this can create ambiguity, so legal counsel or an EOR provider should clarify which laws apply to avoid disputes or compliance breaches.

Employer Responsibilities for Cross-Border Employees

For Finnish employers, obligations differ depending on whether the employee is based in Finland or abroad. If the worker stays in Finland, standard payroll, pension (TyEL), and social insurance contributions apply, managed through Finnish Tax Administration (Vero) and Kela, the Social Insurance Institution.

If the employee relocates overseas, employers must:

• Determine whether Finnish or host-country social insurance applies.
• Adjust payroll to withhold taxes locally (if required).
• Respect host-country minimum wage, leave, and termination rules.
• Ensure compliance with GDPR and data-transfer regulations across borders.

Failing to do so can expose the company to foreign labor fines or back payments. Partnering with an EOR in the host country ensures full compliance and minimizes liability.

How Do Employer of Record Services Work?

Employer of Record (EOR) providers act as the local legal employer for a company’s overseas workers. The EOR hires the employee on behalf of the Finnish company, handles payroll, tax compliance, and statutory benefits in the worker’s country, while the company retains full operational control.

This model is ideal for companies exploring international talent or supporting Finnish employees who move abroad.

EOR vs. Traditional Employment: Key Differences

By delegating administrative and compliance functions to the EOR, Finnish employers can continue working with their global staff without opening foreign entities or risking PE exposure.

Payroll, Taxes, and Benefits Under an EOR

An EOR in Finland or abroad handles all country-specific employment obligations, including:

• Income tax withholding and remittance
• Social security contributions
• Local pension and insurance schemes
• Paid leave and public holiday management
• Health and safety compliance for remote workers

EORs also manage employee onboarding, digital contract signing, and document retention under local data protection rules. This ensures every aspect of the employment relationship meets host-country legal standards.

When to Use an EOR Instead of Setting Up an Entity

Setting up a branch or subsidiary abroad requires registration, banking, accounting, and legal filings, often taking months and costing tens of thousands of euros.

In contrast, an EOR can onboard employees in as little as 1–3 weeks, handling all HR and payroll operations through its existing local infrastructure.

EORs are best suited when:

• You’re hiring a few remote employees abroad.
• You’re testing a new market before establishing a permanent presence.
• An existing Finnish employee relocates internationally.
• You want to avoid the cost and risk of foreign incorporation.

Can I Work Remotely for a Finnish Company Through an EOR?

Yes. An EOR can employ you locally while you continue working for your Finnish company. You’ll receive a compliant employment contract in your country of residence, ensuring the right tax and social contributions are paid where you live.

For example, a Finnish software developer moving to Portugal could be onboarded by an EOR in Portugal. The Finnish employer would still direct the work, but payroll and benefits would be managed under Portuguese law.

Similarly, an international professional working for a Finnish employer can be hired via an EOR in Finland, ensuring compliance with Finnish Employment Contracts Act provisions on working hours, annual leave, and termination.

How Much Does an EOR Cost?

EOR pricing varies by provider, location, and complexity of services. Costs generally depend on the number of employees, country-specific compliance requirements, and benefit packages.

Typical Pricing Models for EOR Providers

Most EORs charge either:

• A flat monthly fee per employee (common for predictable budgeting), or
• A percentage of the employee’s gross salary, typically ranging from 8% to 15%.

Additional fees may apply for visa sponsorship, benefits management, or high-complexity jurisdictions.

Cost Comparison: EOR vs. Setting Up a Subsidiary

For most Finnish SMEs and mid-sized companies, using an EOR offers substantial savings and faster market entry.

EOR Hidden Costs to Watch Out For

While EORs simplify compliance, some may charge extra for:

• Employee offboarding or contract termination.
• Complex benefits packages or healthcare administration.
• Annual payroll tax filing support.

Transparent providers like INS Global clearly outline all costs upfront, helping employers plan accurately.

Are There Risks or Limitations When Working Overseas for a Finnish Company?

Yes, working remotely from another country can trigger different obligations or risks for both employees and employers. These include taxation, benefits, and logistical challenges.

Social Security and Double Taxation Treaties

Finland coordinates its social security rules through EU regulations and bilateral treaties. Finnish employees working in another EEA or EU country may stay covered under Finnish social security for up to 24 months with an A1 certificate, issued by Kela or Eläketurvakeskus (ETK).

Beyond Europe, double tax and social agreements exist with countries like the U.S., Canada, and Australia. These treaties prevent overlapping tax liabilities and ensure contributions to only one country’s system at a time.

Time-Zone, Communication, and Productivity Challenges

Finland operates in the Eastern European Time Zone (UTC+2/3), which overlaps well with Europe and the Middle East but can challenge coordination with Asia-Pacific or the Americas.

Employers should adopt asynchronous work practices, flexible meeting schedules, and clear communication protocols. Tools like Slack, Notion, or Microsoft Teams help maintain real-time collaboration across time zones while respecting Finland’s strong work–life balance ethos.

What Are the Risks of Choosing to Work for a Finnish Company Remotely?

Remote arrangements work best with clear planning and documentation. However, some risks remain for both sides.

Risk of Misclassification as an Independent Contractor

When workers abroad are hired as contractors rather than employees, authorities may reclassify the relationship if it looks like employment (fixed hours, ongoing supervision, exclusivity).

In such cases, the employer could face back taxes, unpaid benefits, and penalties. Using an EOR eliminates this risk by formalizing the employment relationship under local law.

Corporate Tax Liability for the Employer (Permanent Establishment)

If a Finnish employee abroad performs key revenue-generating or managerial activities, local authorities could determine that the employer has created a permanent establishment in that country, making it liable for corporate taxes there.

An EOR acts as the local legal employer, insulating the Finnish company from PE risk while maintaining full operational oversight.

Employee Rights and Protections Overseas

Local labor laws govern working hours, leave, and dismissal rights. Some countries also mandate collective bargaining agreements, minimum notice periods, or mandatory severance.

Employers should review these obligations with an EOR or labor lawyer to ensure compliance and preserve employee protections equivalent to Finnish standards.

Conclusion – How INS Global’s Employer of Record Can Help Companies Work Worldwide

While Finland has been at the forefront of remote work progress for a while, times may be changing in terms of. Recently, the government has made a push to encourage overseas Finnish employees to relocate back to Finland, offering opportunities for those companies that wish to grow locally. As of yet, this is only through encouragement, but international labor laws change quickly.

However, whether you’re a Finnish company managing staff abroad or an employee relocating internationally, INS Global’s EOR services simplify global compliance.

We act as the legal employer in Finland or in your host country, managing payroll, tax, benefits, and legal obligations, so both parties can focus on productivity rather than paperwork.

With over 160 countries covered, INS Global helps businesses:

• Onboard globally within weeks
• Ensure local labor and tax compliance
• Avoid permanent establishment risk
• Offer consistent HR and benefits worldwide
• And much more

For Finnish employers and professionals embracing international work, EOR partnerships offer the safest and most efficient path forward.

FAQ

A Specific Example – Can I Work for a Finnish Company in Spain?

Yes. Once you relocate to Spain, Spanish employment law and taxation generally apply. Your Finnish employer can use an EOR in Spain to issue a local contract, register you for Seguridad Social, and run compliant payroll in euros.

A Specific Example – Can I Live in Finland and Work for a U.S. Company?

Yes, but your U.S. employer may need an EOR in Finland to employ you legally. The EOR manages PAYE, social contributions, and benefits under Finnish law while the U.S. company directs daily tasks.

Can I Work Remotely in the EU for a Finnish Employer?

Yes. Thanks to EU labor mobility and social security coordination, you can work for a Finnish company from another EU/EEA country. Ensure you have the correct social insurance certificate (A1) and that taxes are paid locally or per treaty terms.

Can I Be Paid in Finland While Living Abroad?

Technically possible, but not recommended. Once you move abroad, local tax withholding usually applies. Continuing Finnish payroll could trigger noncompliance in your host country or double taxation unless covered by a treaty.

What If I Want to Switch from Contractor to Employee?

If your working arrangement with a Finnish company becomes long-term, converting to employment via an EOR ensures legal security. You’ll gain benefits such as paid leave, pension, and social coverage, while the employer gains compliance assurance.