Doing business in Sweden: Sweden trade and export guide
Updated 10 July 2015
Brexit
Learn about changes for UK exporters to Sweden if the UK leaves the EU without a deal.
Managing risk
Find out how UK companies can control risks when doing business in Sweden.
Export opportunities and advice
Find more export advice and explore opportunities overseas on great.gov.uk.
1. Sweden export overview
Sweden is a wealthy, prosperous and developed country. It ranks 22nd in the world for Gross Domestic Product (GDP) and according to data from the International Monetary Fund (IMF), it is ranked seventh for GDP per capita . Sweden is a world leader in investment into research and development (R&D), spending around 3% of GDP annually.
Contact a Department for International Trade (DIT) Sweden export adviser for a free consultation if you’re interested in exporting to Sweden.
Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Sweden.
Sweden is the ninth easiest country in to do business according to the World Bank Report 2016.
Over 1,000 British companies are operating in Sweden, including well known companies like BP, British Airways, GlaxoSmithKline, Burberry, BAE Systems and Royal Bank of Scotland.
Benefits for UK businesses exporting to Sweden include:
- English widely used as business language
- geographical hub in the Nordic Region
- strong currency
- modern and friendly business environment
- Swedes are open-minded to new ideas and products
Strengths of the Swedish market include:
- stable economy
- educated and skilled workforce
- user friendly bureaucracy
- pioneer in new technologies and consumer trends
2. Challenges
As a member of the European Union (EU), doing business in Sweden is very similar to doing business in the UK. If your product or service is successful in the UK, there’s a good chance you’ll be successful in Sweden.
However, labour law is intricate and the relationships between employers and unions are strong. Foreign organisations posting workers to Sweden are required to register at the Swedish Work Environment Authority and to appoint a contact person in Sweden.
3. Growth potential
3.1 Economic growth
The Swedish economy showed resilience during the world financial crisis and has continued to grow in subsequent years. The National Institute for Economic Research has forecast GDP growth of 2.3% in 2015 and 3.1% in 2016.
The average unemployment rate for persons aged 15 to 74 was 7.9% in 2014.
3.2 Trade agreements
Sweden is a member of the EU and the World Trade Organisation (former General Agreement on Tariffs and Trade). This means that goods manufactured in the UK are exempt from import duties.
Contact the SOLVIT team if you have market access issues relating to the operation of the Single Market.
4. UK and Sweden trade
Sweden was the UK’s 14th largest export market in 2014 with total exports of around £5.6 billion.
The UK maintains top 5 trading partner status in Sweden and it’s the UK’s biggest export market in the Nordic region.
Top UK exports to Sweden include:
- electrical and communications products
- machinery and transport equipment
- manufactured goods
5. Opportunities for UK businesses in Sweden
Department for International Trade (DIT) provides free international export sales leads from its worldwide network. Search for export opportunities.
Tenders Electronic Daily (TED), the online version of the ‘Supplement to the Official Journal of the European Union’, provides access to public procurement notices from the European Union and European Economic Area.
Learn more about business opportunities in the Nordic and Baltic regions.
5.1 Transport and infrastructure
The Swedish government currently has a 10-year infrastructure spending plan in place worth around £50 billion. This covers both road and rail projects, although the larger share of investment is focused on rail. It also covers infrastructure improvements such as new developments, as well as extra funds for maintenance.
The Swedish government is looking for efficient, low energy and practical solutions to meet increasing infrastructural demands.
Opportunities for UK companies include:
- development and construction of new railway lines
- maintenance of existing railway lines
- maintenance of existing road network
Contact alan.goodliffe@fco.gov.uk for more information on transport and infrastructure opportunities in Sweden.
5.2 Construction
The Swedish construction sector has an annual turnover of £50 billion. About half of Sweden’s national wealth is spent on construction and infrastructure investment.
Sweden continues to invest in the development of work space which includes:
- office and business premises
- public premises such as hospitals
- manufacturing industrial premises
Construction of the European Spallation Source (ESS), a neutron research facility, in Lund, Southern Sweden is a major project. Procurement for this project due for completion in 2025 is ongoing. Total investment in ESS EUR 1.86 billion.
Main opportunities for UK companies are:
- new build
- renovation
- entry to supply chain
Contact sabine.blomberg@mobile.trade.gov.uk for more information on construction opportunities in Sweden.
5.3 Renewable energy
Sweden has an increasing demand for energy. By 2020 it is expected to need an additional 1.3 giga watts (GW) in energy supply.
The government has invested in replacing the country’s energy supply with renewable sources. The target of zero reliance on fossil fuels by 2030, has seen a large expansion of solar, water, biofuel and wind power in recent years. By 2020, Sweden is forecast to get 62% of its energy from renewable sources.
The instalment of 457 new wind turbines in 2013 shows the demand and potential of the market.
Main opportunities for UK companies:
- waste management
- wind turbines
- hydro power
Contact daniel.taylor@mobile.trade.gov.uk for more information on renewable energy opportunities in Sweden.
5.4 Life sciences
The Swedish healthcare market is by far the biggest in the Nordic region, with turnover of about SEK 76.8 billion (£7.7 billion). This amounts to 9.6% of GDP.
Sweden is a global leader in the field of life science and has one of the highest per capita spending in Europe on R&D within this sector.
Opportunities for UK companies include:
- medical innovation
- drug discovery
- pharmaceutical commercialisation
Contact daniel.taylor@mobile.trade.gov.uk for more information on life sciences opportunities in Sweden.
5.5 Cyber, security and defence
Securing cyber networks is an increasing concern for businesses and organisations worldwide with 81% of larger organisations and 60% of smaller ones having a cyber-related security breach in the last year.
Sweden’s defence budget is being increased.
Opportunities for UK companies include:
- involvement in defence supply chain
- cyber security
- capital into internet and media related start-ups
- mobile technologies
- data centres
- Machine to Machine (M2M) / Internet of Things (IoT) / Cloud / smart city / automation technologies
- fintech
Contact Export Control Organisation (ECO) to check your goods you are meeting legal requirements for export.
Contact Timea.Ocskai@mobile.trade.gov.uk for more information on cyber and security opportunities in Sweden.
Contact Steve.angus@mobile.trade.gov.uk for more information on defence opportunities in Sweden.
5.6 Fashion and retail
Swedes have a general appreciation for British products and luxury goods.
Consumers in Sweden have strong purchasing power. They have double income households and lower social costs compared to many other European countries. This makes the country a rewarding place for international brands to expand.
According to a report by Tillväxtverket (the Swedish growth board) Sweden’s fashion industry had a turnover of £18.2 billion in 2013.
Opportunities for UK companies include:
- mid-high end men’s work wear
- women’s high fashion
- shapewear
Contact Lisa.Voltaire@mobile.trade.gov.uk for more information on fashion and retail opportunities in Sweden.
5.7 Food and drink
The Swedish retail food and drink market was valued at around SEK 208 billion (£21 billion) in 2012.
There is a growing demand for more sophisticated products, such as convenience food, tropical fruits, berries (fresh and dried), healthy snacks, and more refined beverages. The mainy attributes for a successful export product are good quality, low fat content, healthy, and easy to prepare.
Opportunities for UK companies include:
- organic
- free from
- ready to eat
Contact lisen.stenberg@mobile.trade.gov.uk for more information on opportunities in Sweden’s food and drink sector.
6. Start-up considerations
There are several ways you can do business in Sweden:
- establish a Swedish subsidiary
- register as a foreign company
- appoint an agent or distributor
- for a joint venture
7. Legal considerations
The major government agencies involved in the regulation of companies and their activities are:
- Swedish Companies Registration Office which registers entrepreneurial activities and legal security for the trade and the business industry
- Swedish Tax Agency which administers Sweden’s various taxes
- Swedish Competition Authority which works to safeguard and increase competition and supervise public procurement in Sweden
- Swedish Consumer Agency which works to safeguard consumer interests
Contact the Department for International Trade (DIT) team in Sweden to help find tax and legal advisers before entering into agreements.
7.1 Standards and technical regulations
Products and packaging should meet EU standards.
If you do not meet the agreed standards, you risk action being taken against you under the Consumer Buyer’s law. More information can be found at the Swedish Consumer Agency.
You must adhere to rules on Swedish labelling. Livsmedelsverket (national foods agency) has responsibility for labelling matters..
7.2 Intellectual property
Trademarks, designs, patents and copyright are the principal forms of Intellectual Property (IP) protection available to companies and individuals.
IP law, especially for patent protection, is not totally harmonised within the EU. In particular patent protection is only harmonised to a certain degree.
The Swedish Patent and Registration is the authority in charge of intellectual property rights in Sweden. You should check that your intellectual property is protected.
8. Tax and custom considerations
8.1 Value added tax (VAT)
The VAT level in Sweden is 25%. VAT for food, hotel accommodation and art is 12%. Books, magazines, transport, sporting events, restaurants, museums etc are subject to a 6% VAT rate.
Foreign key personnel may benefit from a special expatriate tax regime.
Further details on Swedish taxes are available form the Swedish Tax Agency Skatteverket.
Check with HM Revenue and Customs (HMRC) regarding VAT refund of business expenses incurred in Sweden.
8.2 Corporate tax
The Swedish corporate tax rate is 22%.
8.3 Income tax
There are 3 main levels of income tax: 30% municipal income tax and 2 further national bands pushing marginal rates to 50% and 55% for higher earners.
8.4 Customs
The internal market of the European Union is a single market which allows the free movement of goods and services. Therefore no import duties are applicable.
8.5 Documentation
Goods which are in free circulation within the European Union can move between member states without being subject to any documentation requirements.
This does not apply to excise or controlled goods which still require documentation.
9. Entry requirements
EU residents do not require a visa to enter Sweden, but are advised to travel with a valid passport.
9.1 Travel advice
If you’re travelling to Sweden for business, check the travel advice beforehand.
10. Contacts
Contact the Department for International Trade (DIT) team in Sweden for more information and advice on opportunities for doing business in Sweden.