Sweden

Investing

FDI in figures

Direct Foreign Investment (DFI) was 19 billion USD in 2005. It reached 26 billion USD in 2006. Sweden is very attractive to foreign investors, and is preceded only by Ireland, Belgium and Hong Kong in terms of FDI per person.

Foreign Direct Investment	2004	2005	2006
FDI of inward flow (millions USD)	11,463	10,169	27,231
FDI inward stock (millions USD)	n.c.	n.c.	218,373.0
Performance Index*, world ranking	64	76	53
Potential Index**, world ranking	6	8	n.c.
Number of Greenfield investments	137	103	119
FDI inwards (in % of GFCF)	20.4	16.7	39.5
FDI stock (in % of GDP)	n.c.	n.c.	56.8

Source: UNCTAD, World Investment Report

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.

Why you should choose Sweden

Strong points: The political and economic situation is very favorable and the business environment is good quality. This environment influences favorably the payment behavior of companies. The average probability of defaulting is very low.
According to the World Bank, among 145 countries (in 2005), Sweden is among the first 10 economies in the world, in terms of facility of business undertakings. The survey takes into account the following indicators: creating one's own company, hiring and dismissing employees, carrying out contracts, being able to take out a loan, security for investors.
The Swedish tax system is direct and corporate tax is among the lowest in Europe. The country practises the exemption of holdings, authorizes total fiscal deduction for interest, and has no strict capitalization rules.
The legal system is balanced and ensures sound, transparent and reliable actions. 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 high cost of manpower.
Government measures to motivate or restrict FDI: Since it joined the European Union, the Swedish government has set up 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 in relation to GDP.
Bilateral investment conventions signed by Sweden: To see the list of countries, click here.
To see the conventions, click here.

Administrative 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)