Tax reduction for key personnel
Foreign key personnel – executives, experts, researchers and others with sought-after skills that are difficult to find in Sweden – may qualify for a special tax regime that reduces their income tax by 25 percent and lowers the employer’s social security costs by the same percentage. This tax exemption acts as an incentive for foreign-qualified professionals to try a career in Sweden, while assisting employers in attracting the brain power they need.

Attractive tax package

• Competitive corporate tax rates
• Capital gain exemptions on sales of subsidiaries
• Tax-exempt intra-group dividends
• Full tax on interest
• Tax relief for foreign key personnel
• Absence of thin capitalization rules
• Comprehensive tax treaties for the avoidance of double taxation with most countries

Labor Market

• Low level of conflict
• Good supply of skills
• High participation of men and women

Low level of conflict
Swedish labor relations are generally cooperative and rarely result in open conflict. A relatively generous system of government unemployment benefits has contributed to unions’ willingness to accept measures deemed necessary for economic restructuring.

Good supply of skills Education and staff training is considered one of Sweden strengths in international surveys of competitiveness. The percentage of people with a higher education has increased substantially in recent decades, almost to the extent of constituting a supply shock.

High participation of men and women
Perhaps the most striking feature of the labor force is the rate of female participation, which is only slightly below the rate for men. The introduction of new tax incentives, higher salaries for women and – perhaps most important – the development of an extensive child care system has resulted in an excellent utilization of intellectual capital.

Why Sweden?