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Investing in Sweden

FDI in figures | Why you should choose to invest in Sweden | Procedures relative to foreign investment | Finding assistance for further information

FDI in figures

FDI flow to Sweden slowed down in 2008 and 2009. Nevertheless, the country maintains a high level of appeal to foreign investors because of its multilingual and qualified workforce, and its very high per capita purchasing power. The country is preceded only by Ireland, Belgium and Hong Kong in terms of per capita FDI receipt.

 

The government has undertaken to develop support for investments through expanding sectors (biotechnologies and food processing), as well as on rapidly growing markets (Baltic countries, India, Brazil, etc.). There are gaps in the food processings field as well as in the housing and interior design sectors.

 
Foreign Direct Investment 200520062007
FDI inward flow (millions USD) 10,16923,16220,952
FDI stock (millions USD) 171,768226,385254,459
Performance Index*, ranking on 141 economies 765358
Potential Index**, ranking on 141 economies 88-
Number of Greenfield investments*** 10311986
FDI inwards (in % of GFCF****) 16.032.624.3
FDI stock (in % of GDP) 46.957.656.0

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

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Why you should choose to invest in Sweden

Strong points
The political and economic situation is very favorable and the quality of the business environment is good. This environment favorably influences the way companies behave in making payments. The average probability of defaulting is very low.
According to the World Bank, Sweden is amongst the world's first 10 economies in terms of facility of business undertakings. The survey takes into account the following indicators: the formation of one's own company, hiring and dismissing employees, executing contracts, loan availability, registering one's capital and investor security.
The Swedish tax system is direct and corporate tax is amongst the lowest in Europe. The country applies contribution exemptions, authorizes total tax deductions on interest, and does not have strict capitalization rules.
The legal system is balanced and ensures sound, transparent and reliable hearings. Contracts are standardized and documents are often used for simple procedures, especially for mortgages.
The quality of management and consultancy services is very high, and commercial formalities and procedures are easy to undertake.
For further information, consult the ISA website.
Weak points
The country's only weak point is the high cost of manpower.
Government measures to motivate or restrict FDI
Since it joined the European Union, the Swedish government has established a number of reforms to improve the business legal environment. This has enabled it to attract foreign investors and increase competitiveness.
Sweden is ranked n° 1 by the OECD in terms of public spending, especially in promoting investment.
Bilateral investment conventions signed by Sweden
To see the list of countries, click here.
To see the conventions, click here.

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Procedures relative to foreign investment

Freedom of establishment
Yes.
It takes two to three weeks once the Swedish Company Registration Bureau has received the written application.
Acquisition of holdings
Taking a majority holding in the capital of a Swedish company is allowed. Click here.
Obligation to declare
The investment promotion agency in the country gives information about the authorizations necessary for setting up.
Competent organization for the declaration
The Swedish Company Registration Bureau (Bolagsverket)

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Finding assistance for further information

Investment aid agency
Invest in Sweden Agency (ISA)
Almi Foretagspartner
NUTEK
Other useful resources
 

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Last updates: November 2009