Legal, tax, and administrative requirements for hiring international employees

Hiring internationally allows Finnish companies to access skills that may be difficult to find locally. As more businesses recruit talent from abroad, understanding the legal and administrative requirements becomes an important part of the hiring process.

Although the recruitment process is similar to hiring locally, employers should understand the additional requirements that apply when recruiting from abroad. Being prepared from the start makes the process more efficient and helps avoid delays.

Employee's right to work

Before employment begins, employers should confirm that the employee has the legal right to work in Finland.

Citizens of EU and EEA countries generally have the right to work in Finland without a residence permit. Employees arriving from outside the EU and EEA usually need a residence permit before they can begin working.

Although the employee submits the residence permit application, the employer provides much of the information required for the application. This typically includes:

  • The employment contract or job offer
  • The job description
  • Salary and working hours
  • Employer details

Employment conditions in Finland

International employees have the same employment rights as Finnish employees.

The employment contract should clearly define the role, salary, working hours, probation period, and other key employment terms. Salaries must follow the applicable collective agreement or, if no agreement exists, reflect a reasonable level for the position.

Equal treatment is also an important part of Finnish employment legislation. International employees should receive the same working conditions, benefits, and opportunities as colleagues performing similar work.

Employer tax obligations

Employers are responsible for ensuring that salaries are taxed correctly from the beginning of the employment relationship.

Before receiving their first salary, employees need a Finnish tax card. The employer uses this information to withhold income tax and pay the required employer contributions.

 

Taxation can vary depending on the employee's circumstances. Their country of residence, the length of their stay in Finland, and possible tax treaties between Finland and another country may all affect how income is taxed. For this reason, payroll arrangements should be reviewed individually for each international employee.

Occupational healthcare

Every employer in Finland must arrange occupational healthcare, regardless of the employee's nationality.

The purpose of occupational healthcare is to support employees' health, prevent work-related illnesses, and maintain their ability to work throughout their employment.

Many companies also choose to offer additional healthcare services as part of their employee benefits. Although these services are voluntary, they can make the company more attractive to international professionals considering relocation.

Recognition of professional qualifications

Regulated professions, including healthcare, education, and certain technical occupations, require officially recognised qualifications before employment can begin.

In these professions, employers cannot rely solely on a diploma from another country. Depending on the occupation, the employee may need their qualifications officially recognised by the relevant Finnish authority before they are legally allowed to work.

Employment records

Finnish employment legislation requires employers to keep accurate records throughout the employment relationship. These records serve as official documentation of the employment and demonstrate that the employer has fulfilled obligations related to working hours, wages, and the employee's legal right to work in Finland. They may also be requested by Finnish authorities during inspections or other compliance checks.

Relocation support goes beyond legal requirements

Legal compliance is only one part of a successful international hire. For many employees, relocating to Finland also means adapting to a new country, unfamiliar systems, and everyday practical matters.

Many employers choose to support international employees by helping them find accommodation, register with local authorities, open a bank account, and settle into daily life in Finland.

Although these services are not legally required, they can make the relocation process much easier and help employees focus on their new role sooner.

Hiring international employees involves more than filling a vacancy. Understanding the legal and administrative requirements before recruitment begins allows companies to prepare the necessary documentation, comply with Finnish legislation, and avoid unnecessary delays throughout the hiring process.

If you want the recruitment and relocation process to run as smoothly as possible, professional relocation support can help reduce administrative work and ensure your new employee has everything in place for a successful start in Finland.