The prime minister is formally ranked third in the protocol after the president of Finland and the speaker of the Parliament but is in practice the most powerful officeholder.

Kesäranta, located in the westerly Meilahti subdivision of Helsinki, has been the official residence of the prime minister of Finland since 1919.

Under the provisions of the Constitution of Finland, the president nominates a prime minister after the parties in the parliament have negotiated the distribution of seats in the new cabinet and the government's programme.

If the second nominee also fails to gain an absolute majority, a third vote is held, in which any member of parliament can nominate a candidate; in this round a plurality is sufficient for election.

Previously it was assumed that the president would nominate the candidate who, in a third round of voting, would have gained a relative majority, this usually being the leader of the party with the largest seat share in parliament.