Employer-provided accommodation: a valued workplace benefit

Employer-provided accommodation refers to housing offered by a company to its employees as part of their job. It may be included in the employment contract or arranged separately to make working life easier. Typically, employees pay rent to their employer based on the local market value.

If the rent paid by the employee is below the market value, the difference may count as a taxable benefit (known as a benefit-in-kind). The taxable value is calculated using the Finnish Tax Administration's guidelines. You can find out more about housing-related tax deductions on the Tax Administration website.

From an employer's perspective, offering accommodation as part of a job means arranging it or covering its costs as a workplace benefit. Though this comes with certain responsibilities, it also involves significant advantages.

For instance, employer-provided accommodation could be a fully furnished flat rented from Joo Kodit, conveniently located near the workplace. This makes settling in much easier for experts relocating from other parts of Finland or abroad.

Is subsidised accommodation part of the total salary?

Subsidised accommodation is taxable if an employee receives free or discounted housing from their employer. This means that subsidised accommodation is treated as part of the employee’s total pay.

Even if subsidised accommodation is sometimes organised by the employer, it's not necessarily considered employer-provided accommodation. Subsidised accommodation isn't usually tied to a specific role or location.

The taxable value of subsidised accommodation is calculated based on the Finnish Tax Administration’s guidelines and added to the employee’s taxable income. This taxable value is set independently of the rent paid by the employee. Instead, it reflects the value of the property as estimated by the Tax Administration.

So, what sets employer-provided accommodation and subsidised accommodation apart?

In short, employer-provided accommodation refers to housing provided as part of the employment contract, while subsidised accommodation refers to a taxable benefit to the employee.

Employer-provided accommodation

• Accommodation provided by the employer as part of the employment

• May be taxable if the rent paid by the employee to the employer is below the market value

• Tied to the employment and the terms specified by the employer

• The employer arranges the rental agreement

Subsidised accommodation

• Accommodation offered by the employer as part of the total salary package.

• Always a taxable workplace benefit

• Not necessarily tied to a specific role

• The employee arranges the rental agreement.

Why should employers offer accommodation as a workplace benefit?

Offering employer-provided or subsidised accommodation involves significant advantages for employers. Here are three key reasons to consider this benefit:

1. Stand out in recruitment

In competitive industries in particular, offering accommodation as a benefit can give employers an edge. Employer-provided accommodation, which contributes to a carefree day-to-day life, helps attract and retain top talent.

2. Boost international recruitment

Employer-provided and subsidised accommodation are particularly attractive for international recruits. For employees relocating from abroad or across the country, having accommodation ready and waiting makes settling into a new life much easier, while also reducing culture shock.

3. A message of care and commitment

Providing accommodation is a strategic decision that shows the company values its employees’ wellbeing. Not having to worry about accommodation lets employees focus on their new role from day one. Fully furnished accommodation, complete with all the essentials for day-to-day living, helps them feel at home straight away.

Are you interested in business accommodation for your employees?

If you’re thinking about offering accommodation benefits like employer-provided or subsidised accommodation, check out Joo Kodit’s available rentals. We offer a wide range of furnished and unfurnished homes across Finland. Visit our apartments for companies page to learn more about carefree accommodation options for businesses.

Contact us by email sales@jookodit.fi. We take pride in our flexibility, so everything is negotiable to match your needs. You can also see our available options in our apartment search.