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      In Finland, the parliament has approved amendments to the Finnish Aliens Act concerning the conditions an applicant must meet to obtain a permanent residence permit (P residence permit) or a long-term resident’s EU residence permit for third country nationals (P-EU residence permit).

      The changes have been under discussion in the Finnish parliament throughout the year 2025 and have now been approved and ratified by the President of Finland. The changes will come into force on 8 January 2026.1,2,3

      WHY THIS MATTERS

      The extended residency requirement, stricter language proficiency, and employment history conditions will require organizations and individuals to reassess timelines and eligibility for permanent residence in Finland.

      The exceptions for high earners, university graduates with recognized degrees, and those with advanced language skills provide alternative pathways to qualify for a permanent permit sooner but will require careful documentation and planning. Early awareness and proactive adaptation to these changes will be essential to avoid disruptions to foreign employees’ residence and to facilitate a seamless transition to permanent residence.

      Key Highlights

      Updated Statutory Conditions Governing Permanent Residence Permits in Finland

      • The new legislation states that in order for a permanent residence permit to be granted in Finland, the applicant must have resided in the country continuously for a period of six years, subject to certain exceptions.
      • In addition to the residency condition, the applicant must be able to demonstrate sufficient proficiency in either Finnish or Swedish, which will be determined by language testing, and must have a working history of at least two years without more than short-term reliance on unemployment benefits or social assistance, subject to certain exceptions. Conditions regarding the applicant’s criminal history have also been made stricter.

      Exceptions to the Six‑Year Residency Requirement

      There are exceptions to the six year residency requirement. Meeting at least one of the conditions below will reduce the residency requirement to four years:

      • The applicant has lived in Finland for at least four years under a continuous residence permit (A permit) or a Brexit permit and has annual income of over EUR 40,000 (no language or work history requirement).
      • The applicant has lived in Finland for at least four years under a continuous residence permit (A permit) or a Brexit permit, and has a higher university degree recognized in Finland, as well as two years of work history without relying on unemployment benefits or social assistance in Finland for anything other than very short periods during the stay in Finland (no language requirement).
      • The applicant has lived in Finland for at least four years under a continuous residence permit (A permit) or Brexit permit, has particularly good Finnish or Swedish language skills, verified by a language test, as well as three years of work history without relying on unemployment benefits or social assistance in Finland for anything other than very short periods during the stay in Finland.

      In addition, if the applicant has completed a Bachelor’s, Master’s, Licentiate’s, or Doctoral degree in Finland and has developing Finnish or Swedish language skills, the permanent residence permit can be obtained without the required period of residence (no work history requirement).

      P-EU residence permit can be obtained after a period of five years, if the applicant has lived in Finland for at least five years under a continuous residence permit (A permit) or Brexit permit, the applicant’s Finnish or Swedish language skills are good, and the applicant has sufficient financial resources (no work history requirement).

      Furthermore, the applicant must still meet all general requirements for permanent residence, in addition to the new requirements introduced above.

      KPMG INSIGHTS

      Steps to Consider

      KPMG in Finland states that, in light of the changes, employers might wish to consider the following:

      • Employers and foreign employees in Finland might wish to be aware of the changes in the requirements for permanent residence permits in order to plan for their employees’ residency statuses or potential localization in Finland. For foreign assignments, employers should also be aware of each employee’s continuous residence in Finland in case the employee is planning to apply for permanent residence in Finland.
      • Employers might also wish to proactively support their employees who are subject to language requirements by offering opportunities to take part in language courses for those wishing to apply for permanent residence in the country.

      What’s Next?

      Looking ahead, these changes may increase competition for international talent and place greater emphasis on integration and economic contribution. Although the changes generally tighten the conditions for obtaining a permanent residence permit in Finland, their actual impact varies depending on the applicant’s background and situation. Organizations that adapt quickly and provide targeted support to their international employees will be best positioned to retain key talent in Finland under the new regulatory environment.

      The KPMG International member firm in Finland will continue to monitor the legislative changes and will endeavor to inform readers of GMS Flash Alert of any important developments.

      For additional guidance and assistance, it is advisable to reach out to your usual global-mobility professional or immigration counsel or a member of the global-mobility team with KPMG in Finland (see the Contacts section).

      FOOTNOTES:

      1  SISÄMINISTERIÖ, Inrikesministeriet | Ministry of the Interior, ”Pysyvien oleskelulupien myöntämistä koskevan lainsäädännön uudistaminen,” (in Finnish).

      2  Eduskunta Riksdagen, EV 136/2025 vp, published on 28 November 2025 (in Finnish).

      3  Finnish Immigration Service, “Amendments to Aliens Act regarding permanent residence permits,” (in English).

      Contacts

      karoliina-nurmi
      Karoliina Nurmi

      Partner

      KPMG in Finland

      Artturi Kortelainen
      Artturi Kortelainen

      Global Mobility Advisor

      KPMG in Finland

      Minna Pekkanen
      Minna Pekkanen

      Manager

      KPMG in Finland

      More Information

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      * Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.

      The information contained in this newsletter was submitted by the KPMG International member firm in Finland.

      GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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