Doing Business in Sweden

Sweden: An Overview

In the ever-increasing global market, Sweden hosts one of the most internationally integrated economies in the world. With a focus in technology-driven commerce, Sweden’s sizeable trade and foreign investment are only a few signs of the nation’s competitive business.

In addition to a notable business sector, Sweden focuses on the future through a qualified, highly-developed workforce and education system – Swedish schools and universities meet high international standards. Swedish society itself is reflective of the country’s widespread innovation in information technology.

This inventive technological pioneering stems from Sweden’s high expenditure on and investment in Research & Development (R&D). R&D is an integral part of Sweden’s economy, providing for the necessary breakthrough technology so vital to business. Due to this as well as Sweden’s commitment to education and Information & Communications Technology (ICT), Sweden is recognized as one of the world’s most knowledge-based economies.

Quick Statistics:

>> Sweden’s business sector is unique for its large number of multinational corporations in relation to the relative size of the national economy.

>> Sweden places third in economic competitiveness within the EU, after Switzerland and Denmark (Source: World Economic Forum, 2008-2009).

>> Sweden is ranked as number four in economic competitiveness (Source: World Economic Forum, 2009-2010).

>> Sweden is ranked number one when it comes to technological readiness (Source: World Economic Forum, 2009-2010)

>> In 2008, there were more than 12,800 foreign-owned companies employing a total of 620,000 Swedes. USA was the country with the most IT companies, 241 and almost 12,000 employees. (Source: Only in Swedish; Tillväxtanaly)

>> Sweden is foremost in innovation capability (Source: Global Summary Innovation Index; Trendchart, 2007).

>> The highest internet penetration in Europe; 80% (Source: Invest in Sweden Agency)

>> Sweden was in 2008 ranked number 18 as one of the leading exporters and importers in world trade in commercial services. (Source: WTO)

Swedish Industrial Strengths:

>> Innovation and technology

>> Openness and willingness to work globally

>> Skilled workforce and high productivity

(Source: Invest in Sweden Agency)

Market potential

Sweden is often seen as a frontrunner in adopting new technologies and setting new consumer trends more broadly. Thus, in Sweden products and services can be tested where there are already demanding customers and high levels of technical sophistication. Nowhere else is average market take-off so rapid, and Sweden’s test market for new technologies is ranked third after Iceland and Japan.

Foreign investors can benefit from Sweden in many ways. One way is to tap into the skills and technologies in our industry clusters and research institutions. Of special note are the cleantech, ICT, life sciences, automotive and materials science industries. These are all areas where Swedish companies excel and compete at highest international level. (Source: Invest in Sweden Agency)

ICT- Sweden’s is one of the fastest countries to adapt to new technologies both when it comes to businesses, public and the private sector. With possibilities for good R&D, early innovation and adaptation Sweden’s the perfect country for ICT.

Clean tech- With a well known heritage of being environmentally friendly, worldwide recognition and being a world leader when it comes to cleantech there are plenty of business opportunities in Sweden.

Life Sciences- With access to cutting edge technology, six medical universities recognized for there research, that’s the reason why Sweden’s the fourth largest biotechnology in Europe.

To read more about competitive industries: Invest in Sweden Agency

Attractive Corporate Tax Climate

Over the course of recent decades, Sweden’s cost position has become increasingly competitive. Total salary costs in Sweden for a basket of 15 professional and administrative jobs are considerably below those found in Japan, Germany and France. Costs for manufacturing labor show an even more competitive pattern, with Swedish salary rates placed second-lowest among ten European nations assessed by a grouping of Swedish labor unions.

For more details: Invest in Sweden Agency

An Attractive Corporate Tax Climate

At a flat 26,3 percent, Swedish corporate tax rate is significantly lower than in many other European countries and OECD nations. The nation also has decreased business costs in comparison to other European countries.

    * Competitive corporate taxes
    * Capital gain exemptions on sales of subsidiaries
    * Tax-exempt intra-group dividends
    * Full tax relief on interest
    * Tax relief for foreign key personnel
    * Absence of thin capitalization rules
    * Comprehensive tax treaties for the avoidance of double taxation with most countries

Important for Your Business

With its access to new technology and thriving business, Sweden has been crucial for foreign investors seeking opportunities in trade. Sweden also offers a vital location, serving as a gateway to three distinct markets: Scandinavia (25 million consumers), Baltic Sea Region (100 million consumers), and the European Union (350 million consumers). Sweden serves as an ideal spot for conducting high value-added operations in goods or services or for establishing competency centers to serve the entire region.

In addition to location and technology, Sweden attracts numerous foreign investors due to its highly-educated populace and global business mindset. In 2008, Sweden had the second most private equity investments as a percentage of GDP in all of Europe (Source: European Venture Capital Association).

Even in an unfavorable economic environment Sweden’s economy continues to grow at a rate of 0.9% (Source: US Department of State)

US direct investment in Sweden during the first nine months in 2008 was $609.2 million, most of them focused in the IT and computer hardware industries. (Source: US Department of State)

Useful information:

Invest in Sweden Agency

Swedish Trade Council, USA

Swedish Customs

Swedish Agency of Patent & Registration

Sweden National Board of Trade

Embassy of Sweden, Washington DC

National Tax Board

Swedish Chambers of Commerce

The Department of Immigration

The Swedish Public Employment Service