Economic overview
Notwithstanding Sweden’s exposure to worldwide exchange dynamics, Covid-19 limitedly affects its economy contrasted and most other European nations. Milder precaution limitations against Covid-19 prior in the year and a solid recuperation in the second from last quarter contained the GDP compression to an extended 4.7% in 2020 as indicated by IMF or 2.9% as per most recent evaluations of the Swedish government. Declining business certainty file and increasing joblessness rates are expected to burden financial recuperation in 2021, with development estimate at 3.5% (3% as indicated by Swedish government).
Sweden’s among rare progressed economies to show both a current record excess and low open obligation in Europe. Public gross obligation was projected to ascend to 41.9% before the finish of 2020, from an expected 34.8% per year sooner as the public authority has presented liberal joblessness remunerations and dispensed extra assets to nearby specialists because of rising wellbeing and government assistance costs. Money related approach is required to stay accommodative in 2021-22, with the Swedish national bank keeping up the repo rate at zero until in any event 2023 and the public spending ascending to SEK 105 billion for 2021 (2% of GDP). Government obligation is projected to edge down just hardly to 41.4% by 2022.
Main sectors of industry
Agriculture has 1.4% of the GDP and utilizes 1.6% of the labor force. The principle agrarian items are grains (especially oats, wheat, grain, and rye), potatoes and other root yields, vegetables, and organic products, just as dairy items, meat and wood. While creation surpasses homegrown utilization, a lot of food should be imported because of absence of yield assortment. The nation has an abundance of characteristic assets: timberlands, iron, lead, copper, zinc and hydroelectric energy.
The industrial sector adds to 22.2% of the GDP and utilizes almost 17.7% of the labor force. It is overwhelmed by gatherings like Volvo, Saab, Ericsson, ABB, AstraZeneca, Electrolux, Ikea, H&M, and so on Sweden’s principle fabricating exercises are wood preparing, paper, electronic gear, modern food handling, drug items, and so forth The new advances and biotechnologies areas are critical in the economy.
The tertiary sector, driven by media communications and IT gear, utilizes 80.7% of the dynamic labor force and adds to 65.2% of the GDP.
Taxation in Sweden
Sweden’s tax structure is transparent and efficient.
There is a beneficial tax climate for enterprises that set up a subsidiary, a holding company or a branch in Sweden.
Companies and branches that have business in Sweden are liable to pay tax there. The corporate tax is at 21,4% but there should get to 20,6% this year.
A Swedish company is generally taxed on its worldwide income. Losses can be carried forward indefinitely and offset against the taxable profit.
There is no withholding tax on a dividend to a “foreign company” that is the foreign equivalent of a Swedish limited liability company, if the dividend is tax exempt under Swedish participation exemption rules should the recipient be a resident company.
Capital gains and dividends from business related shares are generally exempt from tax. Interest costs generally deductible for tax purposes.
The standard VAT rate is 25 percent. For food, acccommodation, camping, and cultural and sporting events, the VAT is reduced to 12%, while a 6% applies to books, magazines, newspapers and public transport.
Medical and dental care, banking, finance and social services are VAT exempt.
Investing in Sweden
Sweden is one of the world’s largest investors.
Manufacturing, followed by legal, professional, scientific and technical activities, and the wholesale and retail sector are the main foreign investment hubs.
Here are the main reasons why you should consider Sweden for your investments:
- Business friendly environment, with skilled professionals
- Low corporate tax rate
- Easy access to a market of 28 european countries
- Strong public finances
- The economy is open, diversified and competitive.
- Political stability
- Good quality of life
- Dynamic and competitive technology hub
- Very high per capita purchasing power
- The judicial system is balanced and allows for safe, transparent and reliable decisions.