Sweden is often seen as a frontrunner in adopting new technologies and setting new consumer trends. Thus, products and services can be tested in Sweden where there are already demanding customers and high levels of technical sophistication. Nowhere else is average market takeoff so rapid; Sweden’s test market for new technologies ranked among the top five in the Global Innovation Index 2015.
Foreign investors can benefit from Sweden in many ways. One way is to tap into the skills and technologies in Swedish 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: Business Sweden)
Competitive Labor Costs Combined With Low Corporate Taxes
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 lower than 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, as assessed by a grouping of Swedish labor unions. At a current flat tax rate of 22 percent, Sweden’s corporate tax rate is significantly lower than in many other European countries and OECD nations. The nation has also decreased business costs in comparison to other European countries. Sweden has an attractive corporate tax climate because of:
- 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
For more details: Business Sweden
Big Private Sector
Private owned companies represent 90% of the industrial production in the country. Service companies stood for 66.8% of GDP in 2013, agriculture for 2%, and industry for 31.3% of GDP.
Responsible, Advanced and Innovative Thinking
Sweden is by no means the land of “lagom” or normal. Instead, it is seen abroad as rather special – and attractive. Global surveys show that Sweden is associated with qualities like a high degree of technical skills, innovative and user-friendly design, quality and professionalism, advanced environmental thinking and social responsibility. Swedes work in a non-hierarchical way and with flat leadership; they are seen as honest and dependable, open-minded and cooperative, democratic and egalitarian. This is something a foreign business can use. (Who doesn’t want to do business with a partner like that?)
ICT- Sweden is one of the fastest countries to adapt to new technologies, both in public and private sector businesses. With possibilities for good R&D, early innovation, and adaptation, Sweden is the perfect country for ICT.
Cleantech- With a well-known heritage of being environmentally friendly and worldwide recognition as a world leader in sustainable technology, there are plenty of business opportunities for CleanTech business in Sweden.
Life Sciences- With access to cutting edge technology and six medical universities internationally recognized for their research, there is a reason why Sweden is the fourth largest country for biotechnology in Europe.