Why Helsinki is one of the most cost-efficient cities in Europe for business setup in 2025
Set up a business in Helsinki and get the best cost–quality ratio in the Nordics. Learn why Helsinki offers the lowest operating costs for R&D and tech businesses in Europe. Compare the cost of setting up a business in European cities and see why global companies are choosing Finland in 2025.
Ready.
Set.
Grow.
When comparing costs of R&D centres among European cities, Helsinki consistently ranks within the top 2 for lowest total costs. The city offers top 3 labour cost performance in every sector and some of the most affordable office spaces among peer cities. Especially in Biotech, Helsinki emerges as the most cost-efficient city in the benchmarking.
Helsinki at a glance
18% Corporate tax rate
The corporate tax rate in Finland will be 18% from 2027 onwards. Until 2027, the corporate tax rate in Finland is 20%. The EU average is 21.3% and the world average is 23.4%.
686,000 Helsinki population
Helsinki is the capital and largest city of Finland with 686,000 residents. In the Helsinki metropolitan area, there are 1,271,000 residents.
Trees and sea Urban nature
In Helsinki, nature is close-by. Of the city area, 84.4% is forested, and Helsinki has 130 km of shoreline.
2nd Education leader
Finland ranks 2nd in education globally, measured by access to educations, quality of education and human capital.
EU and NATO Finland belongs to the EU and NATO
Finland holds strong western and European alliances, sharing values of freedom, democracy and international collaboration. Finland follows and can affect EU-level legislation. It also means you can pay in euros here – convenient!
2nd Most innovative
Helsinki is the 2nd most innovative region in Europe.
1550 Year of founding
Helsinki was founded in 1550 and transferred to its current location in the 1640s. The city became the capital in 1812.
Cost comparison: Helsinki leads in R&D affordability
For companies, Helsinki offers a blend of low operating costs and an advanced digital infrastructure. Helsinki is a Nordic cost-leader for R&D-intensive sectors, particularly for companies prioritizing operational efficiency without sacrificing innovation ecosystems, talent access, or infrastructure quality.
Lowest operational cost Biotech & Pharma R&D Center
For Biotech & Pharma R&D centers, Helsinki provides the lowest operational costs among cities compared. The total operational costs for a head count of 100 across 13 different job functions are €8.60M (labour costs €6.26M, property costs €2.34M).
fDi Benchmark from the Financial Times Ltd 2025
Low property cost Software R&D Center
Helsinki is among the most cost-effective cities in Europe for a software R&D center. The total operational costs for a head count of 100 across 28 different job functions are €7.93M (labour costs €9.76M, property costs €877k).
fDi Benchmark from the Financial Times Ltd 2025
Electronics R&D Center
For setting up an Electronics R&D center in Europe, Helsinki is a very cost-effective option, coming second after Stockholm. In Helsinki, the total operational costs for a head count of 120 across 19 different job functions are €11.5M (labour costs €9.9M, property costs €1.5M).
fDi Benchmark from the Financial Times Ltd 2025
Cost-efficiency for small teams Bioinformatics R&D
Helsinki is a highly competitive operational environment for Bioinformatics and small teams or startups. The total operating costs for R&D centre with 18 people in Helsinki are EUR 1.64 m per year.
fDi Benchmark from the Financial Times Ltd 2023
Labour cost and tax efficiency in Finland
Taxation benefit for foreign key employees
Foreign key employees in Finland pay a flat 32% tax at source if they meet with certain criteria, e.g. become a resident taxpayer in Finland, earn at least €5,800/month and their work requires certain expertise.
Median monthly salaries in Helsinki (EUR)
- Managing Directors: €11,615
- Professionals: €4,525
- Technicians: €3,596
- Sales Agents: €4,313
- Service Workers: €2,794
Example of employer costs in Finland
The employment structure in Finland is transparent and predictable. For a salary of €3,000/month, the total cost of setting up a business for the employer is €3,628.20. This includes pension, health insurance, and unemployment coverage.
- Earnings related pension insurance contribution 17,39€.
- Unemployment insurance 0,52%.
- Occupational adducent insurance 1,5%.
- Employer’s health insurance contribution 1,53%.
Labour Costs Comparison for a Software R&D Center
Among European comparison cities, the labour costs for a software R&D center in Helsinki are the second-lowest.
- Stockholm €8,691,104
- Helsinki €9,758,551
- Dublin €9,896,981
- Berlin €11,074,738
- Amsterdam €11,260,211
- Copenhagen €12,874,541
- Paris €14,055,678
- London €14,069,164
Cost of setting up a business in Helsinki
- Foreign companies most commonly conduct business through a private or public limited liability company or a Finnish branch office. The incorporation process involves very few procedures and only takes 2 to 3 weeks.
- For company registration, a Trade Register fee of €320 is applied.
- A €200 auditor’s fee is required to certify the deposit share capital.
- Outsourcing the incorporation work of an LLC to a law firm costs €992.
- The minimum share capital in Finland is €0.
Hidden Savings in Helsinki
Not all costs can be marked down in a spreadsheet at the start of your business. These include time wasted on paperwork or traffic, or a continuous need to hire new staff. Check out how Helsinki helps companies save on hidden costs.
1. Seamless bureaucracy and digitalization
- Finland is #1 in Europe for digital governance (DESI 2023)
- Company registrations and permits are digitized and fast
2. Employee retention & talent
- Finland ranks 4th in the world for talent retention (GTCI)
- 99,000 Healthtech professionals; 42% in Helsinki-Uusimaa
- Expats rate Helsinki as Europe’s best city to live in (Condé Nast)
3. Smart infrastructure & transit
- Public transport in Helsinki is fast and well-connected across bus, tram, train, metro, and city bike lines
- Helsinki Airport: Best in Europe for its size (2025)
- Efficient connections to EU markets and beyond
4. International mindset
- High English proficiency
- Diverse, inclusive culture
Over 20% of residents speak a mother language other than Finnish or Swedish
Key takeaways
When it comes to the cost of setting up a business, from startup labs to global HQs, Helsinki combines low costs with high quality and makes it easy to scale a company. In a world where companies must balance efficiency with talent access and quality of life, Helsinki continues to punch well above its weight.
Contact Helsinki Partners
Ready to grow? We’re here to make it happen. Whether you’re looking for tailored advice, industry connections, or information about funding opportunities, Helsinki Partners is your trusted partner in Finland. Our services are designed to streamline your expansion journey, and the best part? They’re completely free.
Reach out today and let’s work together to leverage the potential of Helsinki’s vibrant business landscape. Your growth, our city—let’s make it happen.
