The government of Finland is committed to increasing the amount of foreign direct investment (FDI) in the country. Last year the government introduced a fast track process for major investments as part of its FDI promotion policy. This year it has announced a cut in corporation tax from 24% to 20%, which will come into effect from the beginning of 2014.
The tax cut is a very positive signal that makes Finland more competitive especially at the European level as an investment destination for international companies, according to Petri Peltonen Director General of the Department of Enterprise and Innovation at the Ministry of Employment and the Economy. The government’s target is that the FDI coming to Finland will be higher than the EU average by the year 2020.
Bayer values Finland
Bayer HealthCare Pharmaceuticals relocated its Northern Europe office from Denmark to Finland in 2011 and has been very satisfied with the move. According to Bayer’s managing director Oliver Rittger, Finland’s strengths are an education system that produces a good workforce, the country’s stability and good infrastructure, and a high quality of life. These are some of the reasons why Bayer is continuing its investments in Finland.
Finland’s president, prime minister and minister of economic affairs all share the view that foreign investment is an important driver for the growth of the economy, according to Tuomo Airaksinen, CEO of Invest in Finland. Despite the economic uncertainty in Europe, which has made many companies cautious in their investments, Airaksinen believes that this year is already looking better for Finland. “When some good news comes from Europe, the investment backlog will start to be released,” he says.
Finland’s fast track for major investors is already in use and the first news about new investments will be made when the companies involved decide to make their announcements, according to Airaksinen.