Sweden

.

 

BACK - COUNTRIES

ABOUT SWEDEN

Sweden at a Glance

Sweden is a Scandinavian nation with thousands of coastal islands and inland lakes, along with vast boreal forests and glaciated mountains. Its principal cities, eastern capital Stockholm and southwestern Gothenburg and Malmö, are all coastal. Stockholm is built on 14 islands. It has more than 50 bridges, as well as the medieval old town, Gamla Stan, royal palaces and museums such as open-air Skansen. Sweden is one of the most competitive, productive and globalized nations in the world. The country is a global leader in innovation with a highly skilled labour force, sophisticated consumers, smooth business procedures, openness to international ownership, and a stable economy. Sweden’s business culture is highly egalitarian, with a lack of formal hierarchy. Compromise and consensus are key business principles, and people at all levels are often empowered to make decisions.

 

 

 

Population: 10 161 797
Form of government: Unitary parliamentary
constitutional monarchy
Official & spoken languages: Swedish, Finnish, Yiddish
Currency: SEK (Swedish krona)
Time zone: CET (UTC+1) summer CEST (UTC+2)
GDP (PPP): $547 billion
GDP (PPP)/per capita: $53,077
Average salary: 22 000 SEK
Unemployment: 6,5 %
Major trading partners: Germany, Norway, Finland, Denmark, United States 

 

PLEASE CONTACT US TO SCHEDULE A MEETING WITH THE NOVASIGMA CONSULTANT

Doing Business in Sweden

Advantages of doing business in Sweden

Setting up a company in Sweden is easy:

  • An AB company ( LLC) can be incorporated in Sweden within 1 week, with a minimum of 1 shareholder and 1 director. The company can be 100% foreign-owned as the shareholders can be of any nationality and residence status
  • The minimum paid up share capital is EUR 5 620
  • Sweden’s company law does not require businesses to publicly disclose details of their shareholders and directors, thereby allowing investors greater privacy.

Sweden offers an excellent business environment for young companies:

  • Sweden is ranked as the 11th best country in the world for doing business, according by the World Bank.
  • Businesses with fewer than 50 employees investing in certain areas are eligible for either grants covering 35% of the costs of machinery, 25% of the office rent and 50% of the consulting or installation costs or monetary subsidies up to €7,000 for training every new employee.
  • Sweden has a well-qualified labour force with a 99% literacy rate, a 97% computer literacy rate and the 3rd highest number of individuals in Europe with university degrees.
  • Sweden has 11th of the highest internet penetration in the world, with almost 92,5% of the people online. Businesses will find it easier to connect with local consumers through web.
  • Resident companies employing highly skilled foreign workers, will pay social security on only 75% of the employee’s taxable income.
  • Sweden’s 4 Free Trade Zones offer bonded warehouse facilities, where goods can be stored for an unlimited period of time without customs clearance.
  • Swedish companies can carry forward their business losses for and indefinite period of time.

 Disadvantages of doing business in Sweden

  • Tax rates for both corporations and individuals are high in Sweden. The corporate tax rate is 22% and the personal income tax can be as high as 56%
  • Sweden has the 23rd highest cost of living in the world.
  • Sweden has the world’s 2nd highest VAT rate of 25%.
  • According to Eurostat, Sweden has the highest hourly labour costs in the EU.
  • All employers are required to contribute 31% social security contributions on each employee’s salary.
  • Swedish company law requires the managing director and deputy managing director of all resident companies to live within the European Economic Area. If there are more directors on the board of a company, then 50% of them must live within the EEA. In addition, all directors living outside of Sweden, must appoint an agent from Sweden, to accept the service of proceeding against them.

PLEASE CONTACT US TO SCHEDULE A MEETING WITH THE NOVASIGMA CONSULTANT

The World Bank “Ease of doing Business -ranking”

Overall rank 2016: rank 10
– Starting a business: rank 13
– Dealing with construction permits: rank 27
– Getting electricity: rank 6
– Registering property: rank 9
– Getting credit: rank 77
– Protecting minority investors: rank 29
– Paying taxes: rank 27
– Trading across borders rank 18
– Enforcing contract: rank 36
– Resolving Insolvency: rank 116

READ MORE: SWEDEN COMPANY FORMATION SERVICES & FEES

Residency and Moving to Sweden

Tax Resident in Sweden

TAX RESIDENCY – INDIVIDUALS:

  • To be considered a resident of Sweden, an individual must have a real home in the country, or if the individual does not have a real home in Sweden, he/she must stay permanently in the country.
  • Tax Resident of Sweden is individual that spends in Sweden above 183 days during calendar year
  • Both income gained in Sweden and worldwide tax will be subject to taxation.
  • Income tax is progressive – the more you earn, the higher your rate will be.

TAX RESIDENCY – BUSINESS:

  • A corporation is resident in Sweden if it is incorporated in accordance with the Swedish Companies Act (incorporation principle).
  • Swedish companies are taxed on their worldwide income, subject to the provisions of tax treaties.
  • Nonresident companies are taxed on Swedish-source income, e.g. income attributable to a Swedish PE and real estate.

 

Taxation in Sweden

Taxes in Sweden

Residence: A corporation is resident in Sweden if it is incorporated in accordance with the Swedish Companies Act (incorporation principle).

Basis: Resident companies are taxed on worldwide income, nonresidents are taxed only on Swedish-source income

Taxable income: Taxable income is based on accounting profit, adjusted for tax purposes by nondeductible expenses, nontaxable income, tax depreciation, etc.

Taxation of dividends: Dividends paid by a Swedish company to a nonresident (corporate or individual) shareholder are subject to a 30% withholding tax unless the rate is reduced under a tax treaty. No withholding tax is imposed on dividend distributions to a legal entity resident in another EU member state that holds 10% or more of the capital of the Swedish company, provided the company fulfills the requirements for the application of the EU parent-subsidiary directive.

Furthermore, no withholding tax is imposed where the dividends are paid to a shareholding qualifying for the benefits of the Swedish participation exemption.
Dividends paid to a Swedish resident generally are not subject to withholding tax, although they are subject to income tax if paid to individuals.

 

Capital gains: Capital gains derived by companies are included in taxable income and taxed at the normal corporate rate of 22%.

Losses: Swedish companies can carry forward their business losses for and indefinite period of time.

Foreign tax credit: The foreign tax credit for any year may not exceed the amount of Swedish income tax attributable to the recipient’s total foreign-source income.

Participation exemption: Sweden has a participation exemption for dividends and capital gains and an extensive tax treaty network

Taxable income: 22%
Taxation of dividends: 0%/30%
VAT registration:
Companies and individuals whose businesses involve the supply of taxable goods or services must charge VAT and be registered for VAT purposes
– VAT Rates: The standard rate of VAT is 25%. 
Surtax:
Alternative minimum tax: Yes
Withholding tax (general): 30%
– From Dividends 0%/30%
– From Royalties 0%
– From Interests 0%
Transfer tax: No
Capital gains tax: 0%/22%
Real property tax: 0,2%-2,8%
Social security: The employer social security contribution is 31.42% of salary and taxable benefits.
Payroll tax: Sweden has a progressive income tax, the general rates for 2018 are as follows (based on yearly incomes):

  • 0% from 0 kronor to 18,800 kronor
  • Circa 32% (ca. 11% county and 20% municipality tax which is the Swedish average): from 18,800 kronor to 468,700 kronor
  • 32% + 20%: from 468,700 kronor to 675,700 kronor
  • 32% + 25%: above 675,700 kronor
Stamp duty:
Varies; 1.5%/4.25% for real estate
Capital duty: No
Tax treaties:
Sweden has abroad tax treaty network, with most treaties following the OECD model treaty. Treaties generally provide for relief from double taxation on all types of income, limit the taxation by one country of companies resident in the other and protect companies resident in one country from discriminatory taxation in the other.
Anti-avoidance rules:
– Transfer pricing Transactions between related parties (as defined) must be at arm’s length. The comparable uncontrolled price method may be used, but in the absence of any direct comparables, the taxpayer may use the cost-plus or the resale price method.
– Thin capitalization rule There are no specific thin capitalization rules, but interest paid to a nonresident (whether or not related) must be on arm’s length terms.
– Disclosure requirements No

Compliance for corporation:

Tax year: Calendar year.

Consolidated returns: Consolidated returns are not permitted; each company must file separate return.

Filling requirements: The tax return must be filed within three months after the year-end.

Penalties: Penalties range from SEK 6,250 to SEK 18,750 for the late filing of a return

Rulings: No.

Tax authorities: The Swedish Tax Agency is responsible for all tax administration and compliance for both corporations and individuals.

Personal Taxation in Sweden 2018

Personal taxation basis:

Residents individuals are taxed on their worldwide income: nonresidents are taxed only on Sweden-source income.

Tax Residence: To be considered a resident of Sweden, an individual must have a real home in the country, or if the individual does not have a real home in Sweden, he/she must stay permanently in the country. Tax Resident of Sweden is individual that spends in Sweden above 183 days during calendar year

Filling status:

Joint returns are not permitted.

Income tax rates in Sweden:

Sweden has a progressive income tax, the general rates for 2018 are as follows (based on yearly incomes):

  • 0% from 0 kronor to 18,800 kronor
  • Circa 32% (ca. 11% county and 20% municipality tax which is the Swedish average): from 18,800 kronor to 468,700 kronor
  • 32% + 20%: from 468,700 kronor to 675,700 kronor
  • 32% + 25%: above 675,700 kronor

Social security payments in Sweden: Paid by employer, except for pension insurance fee of 7% on employment income up to SEK 478,551

Inheritance/estate tax in Sweden: 

No

Net wealth/net worth tax in Sweden:

No

Tax year:

Calendar year

PLEASE CONTACT US TO SCHEDULE A MEETING WITH THE NOVASIGMA CONSULTANT

 

OUR OFFERS IN SWEDEN

  • Company disclosure in netherlands, UK, Germany, Russia
    COMPANY DISCLOSURE SOLUTIONS
  • business planning, tax consulting by Novasigma
    BUSINESS CONSULTING FROM 125€/h
  • Sweden - Company Formation Services from 2.290€
  • TAX & WEALTH PROTECTION PLAN

 

NOVASIGMA IN SWEDEN

Consulting & Advisory services

Consulting & Advisory services

PLEASE CONTACT US TO SCHEDULE A MEETING WITH THE NOVASIGMA CONSULTANT

Incorporation, Administration & Business services in Sweden

Incorporation services in Sweden

  • New company formations in Sweden | from 2.290€
  • Company Closures and liquidations in Sweden | Ask for quotation

Company administration in Sweden

  • Legal registration address service for a Swedish company | from 900€/year
  • Company secretarial service 60€/h
  • Nominee director services
  • Nominee shareholder/ techical UBO services

PLEASE CONTACT US TO SCHEDULE A MEETING WITH THE NOVASIGMA CONSULTANT

Additional business services in Sweden (by Novasigma Certified Partners)

Accounting and Bookkeeping services in Sweden


Some of the common domestic Accounting and Bookkeeping services we provide in Sweden include

  • Bookkeeping and Accounting Package | from 600€/ year + 90€/h
    • Invoicing and payments
    • Annual accounts
    • Monthly Reconciliation
    • Monthly financial statements (including balance sheet and income statement)
    • Payroll services
    • Income and tax return
  • Management accounts | Ask for quotation

Value Added Tax (VAT)

  • VAT registration | +90€/h
  • EORI registration | +90€/h
  • Advice on VAT scheme options | Ask for quotation
  • VAT returns and declarations | +90€/h

Audit

  • Annual accounts in view of an annual audit and attend accounting audits | Ask for quotation

Legal services for Swedish companies and business owners

Legal services in Sweden for all Novasigma Clients including companies and their owners and directors

Novasigma has built in Sweden team of lawyers, associates and legal advisers to assist our clients with a business and tax planning, overseas business operations, risk management and other legal matters. Primarily focused on business transactions, Novasigma Accounting & Law corporate attorneys are a great asset to a small and large businesses. With a background on corporate law, our corporate lawyers and legal advisers have an in depth knowledge on the transactions that may put your business at risk of litigation. These include contracts and negotiations, taxation laws, business structuring, buy/sell agreements, and intellectual property, among others.

Send us a Brief for Quotation

Banking, Financial and Insurance services in Sweden

Banking services in Sweden

Financial services in Sweden


 

NEWS AND BUSINESS OPPORTUNITIES IN SWEDEN

  • 5 Reasons for investing in Sweden

 


Interested in Sweden? Please leave us a message and we will come back to you shortly.

Available services

  • Tax planning and tax free solutions from Novasigma
    Tax Planning, Business Structuring & Wealth Protection
  • Incorporation & Rental Company Services
  • ACCOUNTING & OUTSOURCED PAYROLL
  • Company disclosure in netherlands, UK, Germany, Russia
    Business Disclosure & Redomiciliation
  • Marine, Aircraft & Vehicle Registration
  • Novasigma offers citizenship programs with Caribian passports and tax residencies with a immigration service
    HIGH NET WORTH IMMIGRATION

News and business opportunities

Mauritius GBC1 Companies will be liable to tax rate of 15% from 1 Jan 2019

Mauritius GBC1 Companies will be liable to tax rate of 15% from 1 Jan 2019

As of 1 January 2019, GBC1 companies will be renamed as Global Business Licence (GBL) and will be liable to tax at the rate of 15%. However, GBL will qualify for an exemption of 80% of the specific foreign-source income (e.g. foreign dividend not allowed as deduction in source country, foreign interest income, foreign-source income…

SCAN2MOVE – SHARE ISSUE

SCAN2MOVE – SHARE ISSUE

Our client Scan2Move is a world recognized digital inventory list application for mobile devices with the main aim to bring the moving industry into the digital era. It is a well recognized solution by major global moving organizations like IAM and FIDI. The application makes the moving process more secure, smooth and cost-efficient. The solution…

Mash Group Plc – Investor Opportunity

Mash Group Plc – Investor Opportunity

Mash Group Plc (former Euroloan Group Oyj) is a rapidly growing international fintech group headquartered in Helsinki, Finland with offices in Luxembourg, Madrid, Stockholm and Warsaw. It has developed an efficient payment and financing business model and system in the market, and is a leading service provider in key European markets. Mash´s fully automated and…

Georgia – Tax (Free) Residency

Georgia – Tax (Free) Residency

ABOUT GEORGIAN TAX RESIDENCY We all want to find legal ways to reduce our yearly tax burden. For many of us, that means establishing our homes and/or businesses in low-tax countries. The good news is that most countries with low-tax systems are actively trying to attract wealthy individuals and the business expertise that they bring. The…

Salmari – Distributor Opportunity, East Europe & Russia

Salmari – Distributor Opportunity, East Europe & Russia

Salmari is a dark, premium salmiak liquor (alcohol vol 25%) with a refined and exotic taste. Based on an original Finnish recipe where Salmiak liquor has been the most popular shot for the last 20 years, especially among women and consumers aged between 18-40. Finland is home to many unique alcohol brands which have been…

You can now pay with cryptocurrencies for Antigua & Barbuda Citizenship Program

You can now pay with cryptocurrencies for Antigua & Barbuda Citizenship Program

Antigua and Barbuda becomes the first country to accept Bitcoin and other cryptocurrencies as payment for citizenship by investment program (CIP). On Monday July 23, the parliament of Antigua and Barbuda amended by resolution on Citizenship by Investment Programme Act to allow payments to be made in Bitcoin and other cryptocurrencies.  The resolution also allows payments to be made in…

Novasigma provides international accounting services, company formation services, legal, business and tax advisory services | Terms of Use & Terms of Business | © 2016 NOVASIGMA Global - Accounting & Law Cooperative ("NOVASIGMA LIMITED"). Member firms of the NOVASIGMA Global - Accounting & Law network of independent firms are affiliated with NOVASIGMA Global - Accounting & Law. NOVASIGMA Global - Accounting & Law provides no client services. No member firm has any authority to obligate or bind NOVASIGMA Global - Accounting & Law or any other member firm vis-à-vis third parties, nor does NOVASIGMA Global - Accounting & Law have any such authority to obligate or bind any member firm. Independent registered advisers, lawyers and accountants are not owned by, affiliated with or supervised by Novasigma or its affiliates. Novasigma provides custody, trading and operational support services for advisers, lawyers and accountants. Not all products and services available through Novasigma and its affiliates are available through advisers, lawyers or accountants. Registration does not imply a certain level of skill or training. Depending on jurisdiction there might be eligibility requirements to work with a dedicated Financial Consultant, Lawyer or Accountant. Wealth management, accounting, audit and legal services refers to products and services available through the operating subsidiaries of the Novasigma Corporation of which there are important differences including, nut not limited to, the type of advice and assistance provided, fees charged, and the rights and obligations of the parties. It is important to understand the differences when determining which product and/or services to select. Novasigma provides a full range of business, financial, banking and tax advisory, accounting and legal services through its operating subsidiaries.

All rights reserved. NOVASIGMA is a trademark of SilverFox & Co. Inc. Online services by NOVASIGMA LIMITED - Suites 41/42, Victoria House 26 Main Street, Gibraltar GX11 1AA.

bitpay
Bitpay
Latvijas Pasta Bank
NTL Immigration
CM Asesores
Blue Orange Bank