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Date: 2015-10-1 16:43:28

Sweden-Reason to Invest

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.


However, there are disadvantages of it. The country's weak points are the high cost of manpower, rigid labor legislation, high individual tax rates, and overall high costs in Sweden. Furthermore, 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.


The following is the table showing the protection of foreign investor in between of Sweden, Organization for Economic Corporation and Development (OECD), United States and Germany.