Space Law in Finland

What is space law? Regulation of space activities in Finland and the EU

Space is no longer the preserve of states and large space agencies. Finnish companies design, launch and operate satellites and sell satellite data worldwide. At the same time, space has become critical infrastructure: positioning, time synchronisation, communications, weather services and national defence all rely on satellites. Space law sets the conditions on which these activities may be carried out – and determines who is liable if something goes wrong.

Space law in brief

Space law is the body of rules governing the exploration and use of outer space and the objects launched into it. It has three layers:

International space law: the United Nations space treaties drawn up in the 1960s and 1970s, which bind states.
National space legislation: states implement their treaty obligations through their own laws. In Finland, the key statute is the Act on Space Activities (63/2018).
EU regulation: the EU runs its own space programme (including Galileo and Copernicus), and the European Commission has proposed the first EU-wide regulation on space activities, the EU Space Act.

In practice, a space project also involves many other areas of law: export controls and sanctions, radio frequency regulation, insurance and liability law, contract law, and the rules governing mergers and acquisitions.

The international framework: states are responsible for private space activities

The cornerstone of space law is the 1967 Outer Space Treaty. Outer space is free for exploration and use by all states, but no state may claim sovereignty over outer space or celestial bodies. For companies, the most important principle is that a state bears international responsibility for the space activities of its private operators and must authorise and continuously supervise them.

The Outer Space Treaty is supplemented by, among others:

the Liability Convention (1972): the launching state is absolutely liable for damage caused by its space object on the surface of the Earth or to aircraft in flight; liability for damage caused in outer space is fault-based;
the Registration Convention (1975): objects launched into outer space are entered in a national registry and reported to the United Nations;
the Rescue Agreement (1968): the rescue of astronauts and the return of space objects.

Because liability rests with the state, states require operators to hold a licence, carry insurance and accept a right of recourse. National space legislation is therefore the starting point for every satellite project.

The Finnish Act on Space Activities

Finland has been a party to the UN space treaties for decades, but its own space law was enacted only when the first Finnish satellites were about to be launched. The Act on Space Activities (63/2018) entered into force on 23 January 2018. Its aim is a predictable and legally clear operating environment: as a rule, space activities are not restricted where safety and the other licensing conditions are met.

Scope

The Act applies to space activities carried out in Finnish territory, on board a vessel or aircraft registered in Finland, or by a Finnish citizen or a legal person registered in Finland. Space activities mean the launch of a space object, its operation in outer space and its return to Earth. A space object is any man-made object launched into outer space, such as a satellite or a launch vehicle.

Key principles of the Act

Prior authorisation: space activities require a licence, which must be obtained before operations begin.
State liability and right of recourse: the State is liable externally under the international treaties, but the risk is passed on to the operator through the right of recourse and mandatory insurance.
Safety: the activities must not cause particular danger to people, property or public safety.
Sustainability: the activities must be environmentally sustainable, also in outer space, and the generation of space debris must be limited.
Transparency and supervision: space objects are registered, and the authority supervises the activities throughout their life cycle.

Liability and insurance

Damage caused by a space object is compensated in the first instance from State funds, except for damage suffered by the operator itself. The State may recover the compensation it has paid from the operator. For damage caused on the surface of the Earth or to aircraft in flight, recourse liability applies regardless of fault. The right of recourse is capped at EUR 60 million, but the cap does not apply if the operator has breached the Act or the licence conditions. The operator must hold liability insurance covering at least this amount. The insurance requirement may be waived if the launch service provider's insurance covers the risk or the risk is otherwise acceptable.

Space debris and end of life

Operators must limit the generation of space debris and reduce the risk of break-ups and collisions. When operations end, a decommissioned space object must be moved to a less-used orbit or directed into the atmosphere.

Licensing requirements

The Ministry of Economic Affairs and Employment may grant a licence for a fixed or indefinite period and attach conditions to it. The applicant must demonstrate, among other things, that:

the operator is reliable and has the necessary technical and financial capacity;
a risk assessment shows that the activities do not cause particular danger;
space debris is prevented and there is a plan for ending operations;
the operator holds the insurance required by the Act;
the activities comply with the frequency rules of the International Telecommunication Union (ITU) and with export control rules; and
the activities do not conflict with Finland's national security or foreign policy interests.

The application must also set out the ownership of the space objects and assess the environmental impact of the activities on the ground, in the atmosphere and in outer space.

Transfers of satellites and changes

Transferring a space object or control of space activities to another party requires the Ministry's prior approval. If the transferee is established abroad, the Ministry may require a liability agreement with the transferee's home state. This matters, for example, when a satellite in orbit is sold or when a space company is sold to a foreign buyer. Operators must also notify the authority without delay of changes affecting the licence conditions or registry data, of changes in ownership and of the termination of operations.

Registration, supervision and sanctions

Registry: space objects are entered in a public national registry, and Finland notifies them to the UN registry. The registry records, among other things, the launching state, the purpose of the object and its orbital parameters.
Supervision: operators submit an annual report on their activities. The authority may carry out inspections and use external experts.
Amendment and revocation: a licence may be amended or revoked, for example for serious breaches. The authority may set conditions for the safe continuation or termination of operations, or order the activities to be transferred to another operator.
Sanctions: unlicensed space activities, unauthorised transfers and failures to insure or to notify are punishable offences.
Defence Forces: the licensing, insurance, transfer and supervision provisions do not apply to space activities of the Finnish Defence Forces, which are overseen by the Ministry of Defence.

Satellite remote sensing and ground stations

Provisions on satellite remote sensing were later added to the Act. Earth observation by satellite requires a licence, and the activities may be restricted on national security grounds. Ground stations are regulated separately under the Act on Ground Stations and Certain Radars.

Legislation is changing. In early 2026, the Ministry of Economic Affairs and Employment circulated for consultation a draft amendment to the Act on Space Activities. Under the draft, licensing and supervision of space activities and remote sensing would move to the Finnish Transport and Communications Agency (Traficom), and the Government would decide on licences with significant national security implications. The draft also clarifies the rules on transfers of space objects and would introduce administrative penalty fees. Anyone planning a licence application should follow the progress of the reform.

Finland space objects registration supervision and sanctions

The EU Space Act

In June 2025, the European Commission proposed an EU Space Act. Its aim is to replace the differing national space laws of the Member States with common requirements. The proposal rests on three pillars:

safety: collision avoidance, space debris management and the sustainable use of orbits;
resilience: cybersecurity and risk management for space infrastructure;
environmental sustainability: assessment of the environmental footprint of space activities.

The proposal would apply not only to operators established in the EU but also to non-EU operators providing space services in the EU. The regulation is still under negotiation: the positions of the Council and the European Parliament differ on, among other things, the scope, the relationship between its cybersecurity rules and the NIS2 Directive, and transition periods. Under the Commission's proposal, the regulation would apply from 2030. Industry has also stressed that the new rules must not add administrative burden to the point of slowing down European growth companies.

What should space companies consider?

Apply for the licence early: start the licensing process well before launch, and take the launching state's legislation into account when buying a launch abroad.
Contracts: launch, manufacturing, operations and data agreements allocate liability and settle cross-waivers of liability, insurance, delays and governing law.
Export controls and sanctions: many satellite components, software and technical assistance are dual-use items whose export may require a licence under the EU Dual-Use Regulation (2021/821). Sanctions against Russia further restrict the supply of space-related goods and services.
Transactions and financing: transferring a satellite in orbit or a licence, foreign ownership and security-critical activities may require regulatory approvals, which must be reflected in the deal timetable and terms.
Liability and insurance: check that third-party liability cover meets the statutory minimum and the contractual risk allocation.
Data and security: the distribution of remote sensing data may be subject to restrictions and customer reporting obligations.
Preparing for EU rules: the EU Space Act and NIS2 may bring new risk management and reporting obligations, which are worth building in already at the product development stage.

How can LKOS help with space law matters?

Space projects combine transport and insurance law, export controls and sanctions, international trade, and corporate transactions – all core areas of expertise at LKOS Law Office. We advise space companies and their investors on licensing, contracts, export control and sanctions assessments, and M&A transactions in Finland, the Baltics and the Nordic countries. We work in English, Finnish and Latvian.

Contact us: [email protected]

This article is a general overview and does not constitute legal advice in any individual case. Status as of 22 October 2026.

Frequently asked questions about space law in Finland

Where does outer space begin legally?

The lower boundary of outer space is not defined in Finnish law or in any internationally agreed treaty. In practice, it is generally considered to begin at an altitude of around 100 kilometres.

Do you need a licence to operate a satellite in Finland?

Yes. Under the Act on Space Activities, launching, operating and returning a space object requires a licence when the activities are carried out in Finland, from a Finnish-registered vessel or aircraft, or by a Finnish citizen or a Finnish legal person. Satellite remote sensing also requires a licence.

Can a foreign company carry out space activities from Finland?

Yes, but the Act on Space Activities applies to all space activities carried out in Finnish territory, regardless of the operator's nationality, so a Finnish licence is required. The licensing assessment also covers national security and foreign policy interests.

Who is liable for damage caused by a satellite?

Internationally, the launching state is liable. In Finland, the State compensates damage caused by a space object and may recover the compensation from the operator, as a rule up to EUR 60 million. The operator must carry corresponding insurance.

Can a satellite in orbit be sold?

Yes, but transferring a space object or control of space activities requires the authority's prior approval. If the buyer is foreign, approval may be made conditional on a liability agreement with the buyer's home state.

Will the EU Space Act apply to companies outside the EU?

Under the Commission's proposal, yes: the EU Space Act would also cover non-EU operators that provide space services in the EU. The regulation is still being negotiated, and the Commission has proposed that it apply from 2030.