Space Law 2026 Comparisons

The international system is evolving, and technological development is advancing rapidly. Space and satellite technologies already play a significant role in both civilian and military infrastructure, and their importance is expected to increase further. Against this backdrop, international regulatory developments are increasingly focused on security, resilience, and strategic autonomy, alongside the need to foster innovation and commercial activity. To remain internationally competitive, actors in the space sector must be able to operate with agility, which, in turn, underscores the importance of coherent national regulatory frameworks and efficient, predictable licensing regimes.

The growing importance of space across all sectors of society, particularly from a security and defence perspective, means that licensing and supervisory procedures are increasingly linked to national security and foreign and security policy considerations.

Finland has sought to position itself in line with these international developments by maintaining a clear and empowering regulatory framework while simultaneously strengthening supervision of national security. National space legislation has been in place since 2018, and is currently undergoing reform. The evolving legislative system seeks to enhance the appeal of Finland’s investment environment and increase investment inflows by establishing a national operating model for the implementation of investment projects. Key measures under consideration include streamlined regulatory and licensing procedures based on a “one-stop-shop” principle, as well as accelerated and predetermined processing times.

A draft Government Bill for revised Finnish space legislation was published in January 2026, proposing amendments to the Act on Space Activities (63/2018, as amended) and the Act on Ground Stations and Certain Radars (96/2023 as amended). The key proposed reform is the transfer of responsibilities under the Act on Space Activities from the Ministry of Economic Affairs and Employment to the Finnish Transport and Communications Agency (Traficom). The amendments were initially scheduled to enter into force in July 2026. However, this transfer of duties has faced opposition from major Finnish space sector companies and, at the time of writing, the Government Bill has not yet been submitted to Parliament.

Finland’s NewSpace sector has expanded rapidly over the past decade, driven by sustained public investment in innovation, research, and a supportive business environment. The ecosystem now comprises approximately 200 space-related companies, ranging from start-ups to globally significant operators. Finland has emerged as one of Europe’s leading NewSpace hubs, ranking among the top countries for private space investment, driven by large-scale funding rounds such as ICEYE’s Series F. By 2026, ICEYE’s valuation, exceeding EUR10 billion, illustrates both the maturity of the ecosystem and the global competitiveness of Finnish space technology.

This development reflects a broader structural shift in the global space economy towards commercialisation and private-sector leadership. Finnish stakeholders, both public and private, have actively positioned themselves in line with this trend. The state has taken a more strategic role, including reinforcing domestic ownership in key companies such as ICEYE, signalling a growing emphasis on retaining influence over critical space capabilities. At policy level, the Finnish Space Strategy 2030 aims to position Finland as one of the world’s most advanced space operating environments, with a focus on predictability, security, and innovation.

Finnish companies are well positioned to benefit from the NewSpace shift, supported by established strengths in radar technology, hyperspectral imaging, RF technology, AI, cybersecurity and software. Finland’s geographic advantages, including political stability and favourable positioning for polar-orbit ground station operations, further enhance its structural competitiveness.

Public actors play a central and strategic role in the Finnish NewSpace ecosystem. Business Finland (the Finnish government agency responsible for innovation funding and investment promotion) is a key instrument in supporting the growth of space companies through targeted R&D funding, exemplified by ICEYE’s EUR28.3 million continuation grant in June 2026, completing a major funding programme. Complementary financing is provided by Finnvera (the state-owned export credit agency) and Suomen Teollisuussijoitus (Tesi, the state-owned investment company), while the government has also signalled a policy objective of maintaining domestic ownership in strategically significant space capabilities.

The rapid commercialisation of the sector has increased regulatory pressure, reflected in the growing volume of licence applications submitted to the Ministry of Economic Affairs and Employment. The ongoing legislative reform, including the proposed transfer of licensing responsibilities to national sectoral regulator Traficom, seeks to address this by centralising decision-making and introducing a streamlined one-stop-shop that can handle higher volumes of applications more efficiently and with greater consistency.

The reform also addresses increasing legal complexity, particularly in relation to international transfers of space objects or space activities. More broadly, the NewSpace transition has introduced greater contractual and transactional complexity. Finnish operators routinely engage in cross-border launch procurement, satellite operations from Finnish ground stations, international data licensing, and foreign investment arrangements, requiring coordination across applicable regulatory regimes, export control rules, and international treaty obligations. Dual-use considerations have become a defining feature, as the same assets increasingly serve both civilian and defence purposes.

Finland’s space sector has expanded rapidly in line with global growth trends and has emerged as a relatively concentrated but high-performing European ecosystem. According to the European Space Policy Institute’s (ESPI) Space Venture 2024 report, between 2014 and 2024, Finnish space companies raised approximately EUR458 million in funding, placing the Finland among the top four countries in Europe in terms of total investment. Based on the Space Venture 2025 report, Finland had risen to the top two countries in Europe in terms of total investment. The sector continues to attract significant foreign investment, while its strategic importance from a security and defence perspective has increased markedly in recent years.

A defining feature of the Finnish ecosystem is its strong research and innovation base. Many leading companies, including ICEYE and Kuva Space, originate from university spin-offs, such as Aalto University. Finnish universities and research institutes, such as the VTT Technical Research Centre of Finland, provide advanced capabilities in imaging technologies, satellite platforms, and AI-driven data analytics. This close integration between research, education and commercialisation has been a key driver of ecosystem development.

The Finnish space sector is also noted for a growing defence and security element. Space-based services, such as satellite positioning, remote sensing, and secure satellite communications, are integral to the operations of Finnish defence and security authorities. The Finnish Defence Forces have also developed their own space capabilities, including a SAR satellite constellation with a second satellite launched in January 2026.

Finland’s space offering can be broadly structured into four interconnected segments, as identified by Business Finland (“Finnish Solutions for New Space Economy”).

• First, Finland has a strong upstream capability in small satellites, subsystems and components. The country benefits from a well-established technology base, with companies designing, manufacturing and operating small satellites, several of which have already reached orbit. A broader industrial ecosystem supplies critical components across the value chain, including electronics, radio frequency systems, propulsion technologies and high-precision optical instruments. This is supported by specialised testing infrastructure, particularly in radio technology, reliability and radiation resilience, providing a competitive advantage in high-performance environments.
• Second, downstream satellite data-based services make up a rapidly expanding segment. Finnish companies combine Earth observation data with advanced analytics and AI to deliver services across sectors such as forestry, agriculture, maritime operations and smart cities. This data-driven layer is a key driver of value creation in the Finnish space economy and reflects the broader global shift towards downstream applications. Finland is also home to the PECASUS space weather service.
• Third, software and secure connectivity represent a core horizontal strength underpinning both upstream and downstream activities. Finnish expertise in embedded systems, communication protocols, imaging software and AI-enabled analytics supports high-reliability applications across the space value chain. This capability is reinforced by a strong national software tradition and a high standard of education in computer science and artificial intelligence.
• Finally, the ecosystem is anchored in a robust research and education base. Finnish universities and research institutes have a long-standing role in space research and the development of scientific instruments, with participation in numerous international missions. Research spans a wide range of fields, from Earth observation and atmospheric science to space weather and astrophysics. Strong university-industry linkages continue to drive innovation, talent development and the creation of new companies.

Legal System and Sources of Law

Finland is a civil law jurisdiction, where legislation constitutes the primary source of law and judicial precedents are not formally binding in the same way as in common law systems. However, judgments of the Finnish Supreme Court carry significant precedential weight in practice, and decisions of the Courts of Appeal are also persuasive. Legislative preparatory works, particularly Government Bills, play an important interpretative role, reflecting the legislator’s intent. In addition, academic legal doctrine is recognised as a supplementary source of law, especially in more novel or developing areas such as space law.

Current Legal Framework and Anticipated Developments

Finland’s space activities are primarily governed by the Act on Space Activities, which sets out the core framework for licensing, supervision, registration, operator obligations (including insurance), and liability. The regime is complemented by secondary legislation and the Act on Ground Stations and Certain Radars, as well as broader legislation on electronic communications, foreign investment screening, cybersecurity and export control, reflecting the cross-sectoral and security-sensitive nature of space activities.

As noted above, the framework is currently subject to reform. The January 2026 draft Government Bill proposes amendments to both the Act on Space Activities and the Act on Ground Stations and Certain Radars, with a central element being the transfer of key regulatory responsibilities from the Ministry of Economic Affairs and Employment to Traficom. While the reform aims to streamline and centralise licensing and supervision, its timing and scope remain uncertain, as the proposal has not yet been submitted to Parliament.

Up-to-date information on the project is available on the Finnish Ministry of Economic Affairs and Employment’s website.

The Finnish state plays a multi-faceted role in space activities, acting simultaneously as regulator, participant and facilitator. Public authorities are closely involved across the entire ecosystem, from regulatory oversight and policy development to funding, strategic investment and operational use of space-based capabilities.

The Ministry of Economic Affairs and Employment serves as the central authority for space policy and regulation. It acts as the Finnish Space Agency and is responsible for national space legislation, overall coordination of space administration, and Finland’s participation in the development of international space regulation. It currently functions as the licensing authority under the Act on Space Activities.

The role of Traficom is already significant and is expected to expand further. At present, Traficom acts as the regulatory authority for radio frequencies used by both space objects and ground-based systems, as well as for ground stations and certain radars. As discussed above, the ongoing legislative reform proposes transferring core licensing, supervisory and registration tasks to Traficom, which would further centralise regulatory functions.

Other ministries also play defined roles reflecting the cross-sectoral nature of space activities. The Ministry of Defence is responsible for defence-related space policy and oversees the space activities of the Finnish Defence Forces. The Ministry of Transport and Communications is responsible for satellite navigation systems, while the Ministry of Foreign Affairs administers export control licensing, which is particularly relevant given the prevalence of dual-use technologies in the sector.

In addition to its regulatory role, the state acts as a facilitator and investor. Business Finland supports companies through R&D and internationalisation funding, while Finnvera and Tesi provide growth financing. The Finnish government has signalled its intent to support domestic ownership of strategic space assets. The state has also taken a more active strategic role, including reinforcing its ownership in key companies such as ICEYE, signalling an intention to maintain influence over nationally significant space capabilities.

Finally, the Finnish Space Committee (avaruusasiain neuvottelukunta), operating under the Ministry of Economic Affairs and Employment, functions as an advisory and coordinating body. It facilitates cross-governmental policy alignment and serves as an interface between public administration, research institutions and industry.

Finland operates a comprehensive authorisation regime for space activities under the Act on Space Activities. Space activities may only be conducted with prior authorisation from the Ministry of Economic Affairs and Employment (the current competent authority). As noted above, legislative reforms propose transferring these responsibilities to Traficom.

Authorisations may be granted for a fixed or indefinite period and conditions necessary for the safe conduct and supervision of space activities may be attached to the authorisation.

Finland is party to the UN Registration Convention, and the Ministry of Economic Affairs and Employment maintains the national register of space objects. Operators are required to register space objects under Finnish jurisdiction and provide the information specified in the Act on Space Activities. This information is subsequently transmitted to the United Nations Register of Objects Launched into Outer Space.

Supervision is based on a combination of licensing conditions and ongoing regulatory oversight. Operators are subject to continuous monitoring obligations, including the requirement to submit annual reports on their activities. In addition, the Ministry has broad powers to request further information and to carry out inspections of space activities and associated infrastructure where necessary to ensure compliance.

Overall, the Finnish regime combines a relatively centralised licensing model with ongoing reporting and inspection powers, reflecting both international obligations and the increasing regulatory scrutiny associated with commercial and dual-use space activities.

Finland has a structured regime for radio frequency use, with Traficom acting as the competent licensing and regulatory authority for both space-based and terrestrial systems. Traficom coordinates national and international frequency use and participates in international frequency management preparations, including within the International Telecommunication Union (ITU) and the European Conference of Postal and Telecommunications Administrations (CEPT).

Traficom is responsible for monitoring and investigating radio interference, and notifications can be submitted through its online reporting system. In addition, a legislative initiative to criminalise the unauthorised possession of devices intended for the deliberate interference of radio communications was approved in April and will enter into force on 1 July 2026.

Finland does not have a dedicated rocket launch site, but the state acts as a regulator and authorises space operations. As discussed above, the Act on Space Activities includes the regulatory framework for, inter alia, licensing, supervision and registration related to space activities. Thus, the role of the state is mainly connected to this framework enabling and regulating space operations.

International Framework and National Implementation

Finland is party to four of the five core UN space treaties:

• the Outer Space Treaty (1967);
• the Rescue Agreement (1968);
• the Liability Convention (1972); and
• the Registration Convention (1976).

Finland is not party to the 1979 Moon Agreement.

In accordance with its obligations under the Registration Convention, the Ministry of Economic Affairs and Employment maintains the national register of space objects and reports relevant information to the United Nations.

Finnish space legislation is grounded in these international treaties, and a central objective of the national framework is to ensure that Finland can fulfil its international obligations, including the principle of due regard under Article IX of the Outer Space Treaty.

In practice, this is implemented through the statutory authorisation and registration regime, which enables the authorities to obtain information on space activities conducted within Finland’s jurisdiction or by its nationals and legal entities. This, in turn, allows Finland to discharge its obligation under the Outer Space Treaty to supervise activities falling under its responsibility. Correspondingly, key elements of the treaty framework, such as registration, supervision and liability, have been incorporated into national legislation.

Responsibility and Liability

In accordance with Finland’s international obligations, the Act on Space Activities provides that compensation for damage caused by a space object is, as a starting point, paid from state funds, excluding damage suffered by the operator itself. The state is entitled to recover such compensation from the operator to the extent that the operator would have been liable under the Finnish Damages Act (412/1974, as amended).

However, in cases where damage occurs on Earth or to an aircraft in flight, including its passengers or crew, the state’s right of recourse is broader. In such situations, the state may recover compensation from the operator even in the absence of intent or negligence as required under Chapter 2, Section 1(1) of the Damages Act.

Under the Act on Space Activities, the operator must take out insurance against damage caused by space activities to third parties at least up to the maximum amount of the State’s right of recourse (ie, EUR60 million). Compliance with this insurance requirement is a precondition for obtaining a licence.

Exceptions nevertheless apply. This is significant in practice, as insurance costs may be high for smaller operators and may therefore act as a barrier to market entry. The Ministry of Economic Affairs and Employment may refrain from requiring the insurance if: i) the insurance of the launching company or a corresponding insurance substantially covers the operator’s and the State’s liability for damage caused by the space activities to third parties; or ii) on the basis of the risk assessment conducted on the space activities, the Ministry can accept the risk of damage caused by the space activities on Earth, in the airspace and in outer space.

Further provisions on the insurance are laid down by a decree of the Ministry of Economic Affairs and Employment. In said decree, with regard to the exception under subpoint 2 above, insurance must at a minimum cover the launch phase and related operations until the space object has reached its intended orbit. The requirement may also be waived where, over the entire life cycle of the space object, the probability of collision with another object of at least ten centimetres in diameter is less than 1 in 1,000, and the probability of the object or its parts causing personal injury upon re-entry is less than 1 in 10,000.

The maximum amount of the State’s right of recourse for the compensation of damages is EUR60 million. However, the maximum amount does not apply if the operator has failed to comply with the Act on Space Activities or the conditions attached to the authorisation.

In practice, legislative preparatory works note that operators incur direct costs from obtaining third-party liability insurance. The typical insured amount is EUR60 million, with annual premiums generally around EUR30,000. However, in the early stages of development, most Finnish space objects have been small satellites operating in low Earth orbit with relatively short life spans. The associated risk of damage is therefore limited, and the launch phase, as well as the first year in orbit, are typically covered by the launch provider’s liability insurance. In such cases, the Ministry of Economic Affairs and Employment may waive the operator’s insurance requirement. Notwithstanding this practice, the legislation does not provide for a categorical exemption from the insurance requirement for small satellites.

As part of the legislative reform, it is proposed that the State’s right of recourse, in the context of international transfers of space objects, be increased to EUR100 million, which would correspondingly raise the applicable insurance requirement.

Very high altitude (VHA) means a “border” zone between the lower limit of outer space (governed by space law) and the upper limit of aeronautical space (governed by aviation law).

Finnish law, in line with international law, does not define where airspace ends and outer space begins. The Act on Space Activities does not include such a definition, reflecting the absence of international consensus on the matter.

Under the Act on Space Activities, provisions on civil aviation apply, mutatis mutandis, to space objects moving within Finnish airspace. This primarily refers to aviation safety rules set out in the Aviation Act (864/2014, as amended), particularly those concerning activities that may pose risks to flight safety. Legislative preparatory works note that space objects may be launched from Finnish territory in the future, in which case ensuring aviation safety becomes essential.       

The Act on Space Activities applies to space operations irrespective of the specific nature of the activity. Only limited exceptions exist, particularly in relation to satellite remote sensing carried out by public authorities.

The Act primarily applies to space activities conducted within the territory of Finland. It also extends to activities carried out outside Finland where they are conducted: (i) on board a vessel or aircraft registered in Finland; or (ii) by a Finnish national or a legal entity incorporated in Finland.

There are no sector-specific rules governing space activities in areas such as healthcare and life sciences, agri-food, mobility, environment or energy.

With regard to cybersecurity and space data, reference is made to 4. Data Protection and Cybersecurity below.

Under the Act on Space Activities, space activities must be carried out in a manner that does not pose any particular risk to persons, property or public safety.

In addition, any person involved in the launch, operation or return of a space object must possess the necessary knowledge and experience to ensure proper control of the activities under their responsibility.

These safety and competence requirements form part of the authorisation conditions under the Act on Space Activities. The forthcoming EU Space Act is also expected to further address issues related to safety and the prevention of harmful interference.

Under the Act on Space Activities, space activities may only be conducted with prior authorisation from the Ministry of Economic Affairs and Employment. The authorisation is subject to specific conditions, including the requirement for the operator to have a plan for discontinuing the space activities and implementing related measures.

In the licensing process, national security considerations play a central role. Authorisation will only be granted where the proposed activities are compatible with national security interests, Finland’s international obligations and its foreign policy objectives. In addition, the operations shall be consistent with the applicable UN space treaties.

With regard to environmental protection, please see 5.1 Environmental Protection in Space.For space debris, please see 5.3 Orbital Debris.

Categories of Space Data Under Finnish Law

Space data does not constitute a distinct legal category under Finnish law and is subject to a general, technology-neutral regulatory framework applicable across sectors. Finnish law does, however, specifically recognise two categories, remote sensing data and ground station data, and imposes certain additional requirements on each. Regardless of whether space data falls within either of those categories, the general rules applicable to space data vary according to its nature and may encompass provisions governing intellectual property, trade secrets, and personal data.

Both remote sensing data and ground station data are defined by reference to their source and derivation. Under the Act on Space Activities, remote sensing data refers to signals transmitted or data recorded by a device or system used in satellite remote sensing that are in possession of a remote sensing operator, together with products derived therefrom, excluding products that are not primarily based on those signals or data but have instead been obtained as conclusions through the combination or manipulation of different data or through calculations based thereon. Under the Act on Ground Stations and Certain Radars (96/2023, as amended), ground station data refers to signals and data transmitted or received by a ground station or radar, together with products derived therefrom, excluding products that are not primarily based on those signals or data but on conclusions reached through the combination or manipulation of different data or through calculations based thereon. In both cases, the definition applies regardless of the processing or storage stage or the mode of transmission or presentation of the signals and recorded data.

Personal Data in the Space Data Context

Where space-derived data qualifies as personal data, the applicable legal regime is the General Data Protection Regulation (EU 2016/679, “GDPR”), which requires, among other things, a lawful basis for processing, compliance with data security obligations, and transparency towards data subjects. The GDPR is complemented at national level by the Finnish Data Protection Act (1050/2018, as amended). Public sector entities are additionally subject to the Act on Information Management in Public Administration (906/2019, as amended). The national supervisory authority is the Office of the Data Protection Ombudsman.

The State’s Access to Space Data

Finnish law contains both direct and indirect mechanisms through which the state may control or access space data. Under the Act on Space Activities, where an emergency condition under the Emergency Powers Act (1552/2011, as amended) exists, a remote sensing operator must secure priority access to remote sensing data for the relevant Finnish authorities when those authorities consider it necessary for the protection of national security or Finland’s foreign or security policy interests. In such circumstances, the operator is entitled to receive compensation for fulfilling that priority obligation.

Beyond this direct instrument, the state may also exercise control or access through indirect mechanisms, including but not limited to ongoing reporting obligations under the Act on Space Activities and the supplementary Decree (as discussed above), and export controls on space data transfers under the Act on the Export Control of Dual-Use Items (500/2024, as amended) and the Act on the Export of the Defence Materiel (282/2012, as amended). In addition, the Act on the Openness of Government Activities (621/1999) governs public access to government-held documents and may, in certain circumstances, restrict access to space data held by public authorities.

Sharing of Space Data

The handling of space-related data in business-to-business relationships is governed primarily by contract law and sector-agnostic legislation, rather than space-specific rules. Parties are generally free to agree on the terms of the data exchange, subject to compliance with applicable laws related to, inter alia, data protection, competition law, and confidentiality. However, remote sensing data and ground station data are subject to certain restrictions and notification obligations imposed upon applicable authorities – the Ministry of Economic Affairs and Employment for remote sensing data and Traficom for ground station data – as follows.

• Remote sensing data may only be disclosed to customers that have been identified and verified by the remote sensing operator.
• Remote sensing data or ground station data cannot be supplied for military use to any country subject to European Union or United Nations arms export bans or other sanctions.

If the operator has reason to suspect that it has disclosed remote sensing data for such use, it must notify without delay.

• If operator suspects that the disclosure of remote sensing data or ground station data may otherwise compromise national security, Finland’s compliance with its international obligations, or Finland’s foreign or security policy, it must notify the applicable authority without delay.
• The same notification obligation applies where the operator discovers that remote sensing data or ground station data has been accessed by a person not authorised to do so.

There is currently no specific Finnish legislative framework addressing the interoperability of space data sets in a business-to-business context, though EU-level data governance instruments, such as the Data Act (EU 2023/2854) and the Data Governance Act (EU 2022/868), may apply depending on the nature and origin of the data.

Transfer of Space Data

The transfer of space data to third countries is regulated through two principal frameworks.

• Where the space data also constitutes personal data, transfers outside the European Economic Area are governed by Chapter V of the GDPR, which permits such transfers only where an adequacy decision applies, appropriate safeguards – such as Standard Contract Clauses approved by the Commission – are in place, or a specific derogation is applicable.
• Where the space data is of a dual-use nature, transfers are subject to the Act on the Export Control of Dual-Use Items. Where space data constitutes manufacturing know-how relating to products listed on the Common Military List of the European Union, it qualifies as defence materiel, and its transfer is additionally subject to the Act on the Export of the Defence Materiel. In each case, prior authorisation may be required depending on the classification of the data and the destination country.

Finland does not have separate national legislation on space data spaces. It has seen growing activity in sector-specific data spaces across areas such as mobility, agriculture and location data, all of which are well-positioned to leverage space-derived data. However, a dedicated space data space has yet to emerge.

Relevant developments are occurring primarily within the EU’s common framework. A central platform in this respect is the Copernicus Data Space Ecosystem, which provides extensive open and free access to satellite data, alongside tools for its processing and analysis. The country contributes to this initiative through its participation in EU and ESA cooperation, including by hosting infrastructure for the processing and distribution of Copernicus data at the Sodankylä Satellite Data Centre in Northern Finland. ESA is also planning with the Finnish Meteorological Institute and Finnish industrial partners to develop an advanced Earth observation facility.

Regulatory Overview

Regulation on cybersecurity is derived principally from two EU directives: the NIS2 Directive (EU 2022/2555) and the Critical Entities Resilience Directive (EU 2022/2557), implemented in Finland by the Cybersecurity Act (124/2025, as amended) and the Act on the Protection and Resilience of Critical Infrastructure in Society (310/2025, as amended), respectively. Within the space sector context, both directives apply to operators of terrestrially located infrastructure that support the provision of space-based services that meet the separately prescribed criteria.

The competent authority responsible for supervising the cybersecurity of space sector in Finland is Traficom. The National Cyber Security Centre, which operates within Traficom, functions as Finland’s CSIRT unit and is responsible for responding to and investigating cybersecurity incidents. Where a ground station operator identifies a cyber threat or incident, it is required to report it to Traficom.

Under the Act on the Protection and Resilience of Critical Infrastructure in Society, a space sector operator may be designated as a critical entity where:

• it provides a service essential to the functioning of society;
• the critical infrastructure it owns, controls, or operates is situated within Finnish territory; and
• disruption would have significant adverse effects on the provision of one or more of those essential services or on the provision of other essential services in sectors dependent thereon.

In assessing significant adverse effects in the space sector, two factors must be considered: first, the operator’s role in providing services or producing information that is critical to society and dependent on space-based services; and second, the operator’s role in providing services that are significant for the production of information relating to space situational awareness or interference in the radio environment. If a space sector operator is designated as a critical entity, additional obligations related to risk assessments, resilience, security and notifications apply.

Security Requirements

Additionally, the Act on Space Activities and the Act on Ground Stations and Certain Radars place certain security requirements on remote sensing and ground station operators regarding the management of risks concerning the security of their operation and related equipment. Specifically, operators must ensure that remote sensing data and ground station and radar data are transmitted, received, and processed securely, with adequate protection against external interference and cyber threats, unauthorised access to facilities and equipment, and detectable security breaches and faults. For ground station data, logs of commands, encryption methods and keys, timestamps, and routing must be retained for four years, and operators must also maintain business continuity and crisis management plans, secure their supply chains for critical electronic systems, and document their risk management and information security practices.

The forthcoming EU Space Act is expected to introduce additional requirements for on-orbit security due to a concern that the existing framework could primarily be focused on ground-based operations. However, the legislative process is ongoing, and the relationship between the current cybersecurity legislative framework and EU Space Act requirements remains open.

Standards and Rules

More detailed standards, rules and minimum requirements on security may be provided by government decrees or Traficom regulations.

Under the Act on Space Activities, space activities must be carried out in a manner that is environmentally sustainable and promotes an enduring sustainable use of outer space. In its application for authorisation of space activities, the operator must assess the environmental impacts of the activities on the earth, in the atmosphere and in outer space, and present a plan for measures to counter and reduce adverse environmental effects. Any nuclear materials and other radioactive materials used in the space object must be specified in the application for authorisation.

In addition, it has been mentioned in the Act that, in accordance with generally accepted international guidelines, the operator must seek to ensure that the space activities do not generate space debris. In particular, the operator must restrict the generation of space debris during the normal operations of the space object, reduce the risks of in-orbit break-ups and in-orbit collisions and, after the space object has completed its mission, seek to move it into a less used orbit or into the atmosphere.

This section does not apply within this jurisdiction.

Statutory Obligations

The Act on Space Activities addresses orbital debris mitigation directly. In accordance with generally accepted international guidelines, operators are required to seek to ensure that their space activities do not generate space debris. In particular, operators must restrict the generation of debris during the normal operation of a space object, reduce the risks of in-orbit break-ups and collisions, and seek to move a space object that has completed its mission to a less-used orbit or into the atmosphere.

Post-Mission Disposal

The Decree of the Ministry of Economic Affairs and Employment on Space Activities (74/2018, as amended) supplements this framework with a specific disposal requirement. Operators must seek to ensure that, within 25 years of the end of the operational lifetime of a space object, it re-enters the atmosphere or is transferred to an orbit where it is not expected to pose a risk or hazard to other space objects or space activities.

Relationship to The Licensing Process

Debris mitigation obligations are integrated into the licensing process. Compliance with applicable debris-related requirements forms part of the conditions that operators must satisfy in order to obtain and maintain a licence under the Act on Space Activities.

National Planning

Finland does not have a standalone national plan dedicated specifically to orbital debris. However, the sustainable use of outer space, including debris mitigation, is addressed as part of Finland’s broader space policy framework.

Finland does not have a specific tax system for space activities, but the taxation of space-related operations falls under the general Finnish tax framework, including corporate income tax, value added tax, and other applicable taxes and duties. The Finnish corporate income tax rate is currently 20%, and it has been proposed to be reduced to 18% as of 2027. The standard value added tax rate is 25.5%; whereas lower rates apply to specific supplies.

Finland does not have specific tax incentives aimed at space activities. However, it offers several tax incentives which may also be available for space investors. Such tax incentives may include, for example, R&D tax incentives for companies involved in research or development activities, and a key employee tax regime offering beneficial taxation for employees moving or returning to the country.

Finland does not have specific tax regime for sale or transfer of space assets.

Investment and Financing Standpoint

Finland has emerged as a notable destination for NewSpace investment in Europe. The country has attracted significant capital in the space sector in recent years, reflecting a broader shift in European space investment dynamics, with a growing number of jurisdictions becoming active participants alongside the historically dominant space economies.

Financing in the Finnish NewSpace sector draws on both public and private sources. Public instruments include ESA BIC Finland, Business Finland, the EIB Space TechEU programme, and Horizon Europe. On the private side, venture capital activity in the sector has grown in recent years, with capital originating from both domestic and international sources.

Spin-Offs

Academic and research institution spin-offs are one of the defining structural features of the Finnish NewSpace ecosystem. Several companies in the sector have originated from university research environments, particularly Aalto University, often supported initially by public funding and incubation programmes before progressing to private investment rounds.

ESA BIC Finland has also supported a range of early-stage companies in areas such as satellite technology, Earth observation, and space-related data services. In some segments, including remote sensing and imaging technologies, Finnish research-based companies have attracted international interest at later funding stages.

Venture Capital Interest

Venture capital interest in Finnish space-related companies has increased in line with broader European space investment trends, with a gradual increase in both the number of investors and the scale of funding rounds.

The typical financing trajectory often begins with public support instruments and early-stage grants, followed by domestic venture capital participation at the seed stage and increasing involvement of international and institutional investors at later stages. There is also a growing intersection between space technologies and defence or dual-use applications, which may influence investor interest and structuring considerations in certain transactions.

Finnish NewSpace companies are typically financed through a layered combination of public funding, private capital, and selected alternative and hybrid mechanisms, with the relative importance of each source evolving as companies mature.

Public funding is particularly significant at early stages. Business Finland plays a central role in this ecosystem, providing both R&D grants and development loans. In some cases, funding can be substantial: for example, Business Finland has provided individual financing packages of approximately EUR41 million to Finnish space companies, combining grants and development loans to support large-scale R&D programmes. ESA-related support also contributes to early-stage development through programmes such as ESA BIC Finland and other ESA innovation and procurement mechanisms, which are typically used alongside national funding instruments.

At the growth stage, Tesi typically functions as a key public co-investor in the capital stack. It generally invests alongside private investors on market terms, either directly or via fund structures, acting as an anchor investor in rounds where private capital alone may still be limited. Finnvera complements this ecosystem by providing loans, guarantees, and export credit guarantees, which become particularly relevant as companies begin to scale into international and institutional markets. Export credit instruments are especially important for space companies entering sovereign or government-driven procurement structures.

Private financing is primarily equity-based. Venture capital participation typically includes domestic and Nordic investors at seed and Series A level, while international and institutional investors become increasingly important in later-stage rounds. According to ESPI’s Space Venture 2025 report, Finland ranked second in Europe for space investment secured in 2025, reflecting the increasing visibility of the sector in European deep-tech capital flows.

Debt financing remains relatively limited at early stages but becomes more relevant for mature companies with predictable revenues, contracted institutional customers, or infrastructure-like business models. In such cases, long-term government or defence-related contracts may further enhance bankability and support additional financing capacity.

At EU level, programmes such as Horizon Europe and CASSINI provide additional non-dilutive funding and ecosystem support. In Finland, these instruments generally operate as complementary rather than primary sources of transaction financing, particularly in R&D-intensive or consortium-based projects.

Overall, Finnish NewSpace financing is characterised by a structured progression from public de-risking at early stages towards increasing reliance on private and institutional capital as companies scale, with a growing but still secondary role for EU-level programmes and alternative procurement-linked funding structures.

Regulatory Framework and Ongoing Reform

The Finnish framework for space activities is based on the Act on Space Activities, which establishes a licensing regime and operator obligations designed to provide legal certainty and a predictable regulatory environment for commercial operators. This regulatory clarity is generally viewed as supportive of investment activity (see 2.2 Legal System and Sources of Space Law and Regulation).

A legislative reform process initiated in 2025 aims to streamline the permitting framework further, including by centralising administrative responsibilities, introducing a one-stop-shop approach, and improving processing efficiency. The Finnish Space Strategy 2030 similarly supports a more coordinated regulatory framework for space activities (see 1.1 International Legal and Regulatory Developments and 1.2 NewSpace and the Space Tech Economy).

Public Funding and Co-Investment

Public funding plays a significant role in de-risking early-stage investment. Business Finland and other public actors provide grants and co-investment instruments that often complement private venture capital, supporting the development of early-stage space technologies and services. Finland has committed an additional EUR280 million per year in public funding for 2024–2030, targeting 4% of GDP in total R&D investment. With regard to finance sources for space activities, please see 7.2 Finance Sources for Space Activities.

Technology Ecosystem

Finland’s university and applied research institutions generate spin-off activity in the space sector and provide a deep engineering and software talent pool for deep tech development. The Finnish innovation environment encourages and supports the development of space services and applications, with public funding helping to launch new innovations and attract private sector financing alongside.

Investment Environment

Finland’s broader investment environment – characterised by EU membership, a stable regulatory framework, transparent corporate governance, and well-established shareholder protection – supports cross-border investment and integration into European space and technology markets.

Finland does not have a sector-specific foreign investment regime for space activities. Its two general frameworks are nonetheless relevant.

The Act on the Screening of Foreign Corporate Acquisitions (172/2012, as amended) operates as a targeted monitoring mechanism rather than a general approval gateway: the Act’s stated purpose is to monitor and, where required due to extremely significant national interest, to restrict the transfer of influence to foreigners and foreign entities in monitored companies. Confirmation may be refused only where necessary by reason of very high national interest. Space companies fall within the scope of monitored targets in two situations: (i) where they produce or supply critical products or services, related to those authorities’ statutory functions, to Finnish authorities that are themselves central to the safety of society; and (ii) where the company is, when assessed overall on the basis of its sector, business, or commitments, considered critical for the safeguarding of vital societal functions. Acquisitions through which a foreign owner reaches one-tenth, one-third, or one-half of an entity’s total voting rights, or the corresponding actual influence, cross the thresholds at which procedural obligations arise. The nature of these obligations depends on the category of the target. For defence sector companies and companies supplying critical products or services to Finnish authorities, the foreign owner must apply for prior confirmation from the Ministry of Economic Affairs and Employment before completing the acquisition. For other monitored companies that are critical to vital societal functions, the foreign owner may voluntarily notify the Ministry, which may also independently request information once it becomes aware of the transaction.

A space activities licence may only be granted if the activity does not conflict with national security, Finland’s international obligations, or its foreign policy interests. Ground station licences are subject to the same conditions. These licensing conditions apply regardless of ownership structure and function as an indirect filter on foreign involvement in space operations.

NewSpace fundraising in Finland broadly follows the same documentation practices as venture capital financing in other technology sectors. Typical documents include a term sheet, investment or subscription agreement, shareholders’ agreement and corporate resolutions, together with standard due diligence materials.

That said, space-sector companies often require more extensive, sector-specific due diligence reflecting their regulatory and technical profile. Investors commonly focus on intellectual property ownership, export control and sanctions compliance, applicable licensing requirements under Finnish and EU law, satellite operations where relevant, spectrum and frequency authorisations, government funding arrangements, and key contractual relationships with public authorities or major aerospace customers.

Where the business involves satellite launches or in-orbit operations, investors will typically also review liability allocation, insurance coverage, and the status of required regulatory approvals.

In summary, while the core fundraising documentation is broadly similar to that used in other venture-backed technology companies, NewSpace transactions typically involve more extensive technical, regulatory, and compliance-focused due diligence, as well as more tailored representations and warranties.

Due diligence in Finnish NewSpace fundraisings and M&A transactions generally follows the same structure as in other technology sectors, but typically involves additional regulatory dimensions arising from the sector’s layered licensing framework.

Key areas may include the following.

• Licensing: Status, conditions, and transferability of applicable space sector licences, including any national security considerations relevant to a change of ownership or control.
• Security and resilience compliance: Applicability and compliance with security requirements stemming from national space legislation.
• Export control and dual-use compliance: Classification of products and technologies, export licensing history, and compliance frameworks.
• Foreign investment screening: Applicability of the foreign investment screening regime and any timing implications for the transaction.
• Public funding and government contracts: Where present, any provisions that could be affected by a change in ownership or control.

Finnish space companies typically access liquidity through the same routes as other technology companies, including trade sales, secondary share transactions, and public listings, under the general Finnish corporate and securities law framework. Trade sales are the most common exit route, while secondary transactions may enable partial liquidity for existing investors and IPOs may become relevant at later stages of maturity.

There is generally no sector-specific liquidity event process as such for space activities, although transactions may in practice be affected by regulatory considerations such as foreign investment screening, licensing requirements, and other change-of-control related approvals where applicable.

Public securities markets have played a limited role in financing Finnish space activities to date. The sector has primarily relied on public grants, venture capital, and institutional private equity, and no Finnish space company has completed a public listing, at the time of writing.

The main venues are Nasdaq Helsinki, a regulated market, and Nasdaq First North Growth Market, an SME-focused growth market for smaller and growth-stage companies.

Finland does not have space-specific intellectual property (IP) legislation. IP rights arising from space activities are protected under the same general legal framework that applies in other technology sectors, principally the Patents Act (550/1967, as amended), the Copyright Act (404/1961, as amended), Trademarks Act (544/2019, as amended) and the Trade Secrets Act (595/2018, as amended).

Finland is generally regarded as offering a reliable and effective enforcement environment, with an independent judiciary and access to interim measures such as injunctions. The enforcement framework applies equally regardless of whether the underlying innovation relates to space activities.

There is no inherent tension between Finnish IP law and the principles of freedom of exploration and use of outer space. IP rights are territorial and apply to activities within Finnish jurisdiction, and they do not purport to extend to outer space as such. The open-access principles applicable to space exploration under international law operate at a different level and do not restrict the protection of privately developed innovations under domestic IP law.

Intellectual property protection in the Finnish NewSpace sector is rarely built around a single right. Companies typically combine patents, trade secrets, data-related protections and contractual arrangements to create overlapping layers of protection, with each instrument addressing vulnerabilities that the others do not cover in isolation.

Patent filings are generally focused on Finland, the European patent system, and key commercial markets, with jurisdiction selection driven by where the technology is expected to be deployed or commercialised. Cost-efficiency considerations inform jurisdiction strategy, with protection prioritised in markets where the risk of imitation is the greatest rather than in every country of launch.

Finnish companies regularly assess, on a case-by-case basis, whether patent protection or trade secret protection is the more appropriate strategy. Patents confer enforceable exclusive rights but require public disclosure of the underlying technology, which may be commercially or strategically undesirable. For example, this concern is particularly relevant in the dual-use and defence materiel realm. Trade secret protection avoids disclosure and may subsist indefinitely, but affords no protection against independent development or reverse engineering by competitors.

Collaboration is a defining feature of the Finnish space sector, with start-ups, universities, research organisations, and public actors frequently developing new technologies jointly. Ownership and usage rights in such arrangements are typically addressed in advance through co-ownership agreements or licensing structures.

Finland has no space-specific intellectual property enforcement rules, and IP rights are instead governed by the general Finnish and EU legal framework, which operates on territorial principles.

Disputes concerning IP rights arising from space activities are therefore handled within the ordinary legal system, with the Market Court holding exclusive jurisdiction over patent, copyright, and trademark disputes.

The geographical scope of Finnish IP rights is determined by the general principle of territoriality. A Finnish patent confers exclusive rights within Finland, a European patent designating Finland confers rights within Finland, and so on. This framework is, however, supplemented by the quasi-territorial extension established under the Outer Space Treaty, to which Finland is a party. Under the Treaty, a state retains jurisdiction and control over objects registered in its national registry and personnel aboard such objects.

Finnish IP rights therefore extend to Finnish registered spacecrafts, and for example, unauthorised use of a Finnish-patented invention aboard such a spacecraft could give rise to an infringement claim under Finnish law in the same way as an equivalent act on Finnish territory. Where an infringing product or data derived from space activities enters Finnish territory, such as via commercialisation on the Finnish market, ordinary enforcement mechanisms are available.

However, beyond these two connecting factors, Finnish IP law has no reach in outer space. Where infringing activity occurs on an unregistered object or a celestial body and produces no effect within Finnish jurisdiction, Finnish IP rights cannot be enforced. Enforcement is therefore available within national borders and aboard Finnish-registered spacecraft but lacks broader extraterritorial effect absent a territorial or registry nexus.

Finnish companies have begun entering into commercial arrangements with non-Finnish counterparties to extract resources from space for use on Earth, reflecting the growing commercial activity in this area. However, we are not aware of any Finnish legislative developments or judicial decisions addressing the application of patent law to devices manufactured or processes performed in orbit. The question is acknowledged in legal and academic commentary more broadly, but it has not, to our knowledge, given rise to specific national debate or reform initiatives in Finland. In the absence of dedicated rules, the existing framework would apply by default.

In relation to artificial intelligence-generated innovations, Finnish patent law, in line with the European Patent Convention, requires a human inventor. Inventions generated autonomously by artificial intelligence systems cannot currently be patented without attribution to a natural person.

Arbitration offers an effective means of resolving disputes between operators and is a common way of resolving disputes in space-related contracts. Finnish parties usually prefer arbitration under the Arbitration Rules of the Finland Chamber of Commerce and seated in Finland.

However, in international relationships in particular, other institutional rules and seats are also customarily being selected, such as the SCC Arbitration Institute and Sweden as a neutral seat.

There is no public information on such.

Despite the technical complexity and high-risk nature of the sector, disputes in the Finnish space industry have so far remained relatively rare. In practice, disagreements are typically resolved through negotiations between the parties, and there is a general reluctance to resort to formal dispute resolution mechanisms.

However, the evolving regulatory landscape, the increasing number of operators, and the rapid growth of the sector are contributing to a gradual rise in disputes that cannot be resolved without recourse to external dispute resolution methods.

Where formal proceedings are required, operators tend to favour arbitration over court litigation, primarily due to its advantages in international enforceability, confidentiality, procedural efficiency, and access to specialised expertise.