Trading with Sweden as an SME

Everything you need to know to start trading with Sweden.

Sweden is one of the most competitive, enterprising and international countries in the world. In addition to Sweden’s stable economy, it has a highly skilled workforce and cosmopolitan consumers.

High transparency

Sweden has an open and highly transparent approach to international business. Welcoming international partnerships, the country has a highly skilled and educated workforce. Together with the low corporate tax rate, this makes Sweden a comparatively easy country to transact business in.

Established trade partnership

Sweden and the UK have enjoyed a longstanding trade relationship, with the total value of trade in 2019 topping £20 billion (ONS).

Innovation focused

Sweden makes an excellent test market for innovative products due to its sophisticated consumer base and appetite for novel products.

Exporting to Sweden

VAT

It may be possible to zero rate goods exported to Sweden if you are registered for VAT, provided that you meet certain conditions.

The standard VAT rate in Sweden is 25%, but there is a lower rate of 12% for certain products, like food, accommodation and art.

Payment terms

Enterprises must pay within 60 days under Swedish law, unless otherwise agreed. Public authorities have a 30 day maximum payment term, except in exceptional circumstances, where a 60 day term may be allowed.

Routes to market

Overseas suppliers will news a strong USP to successfully enter this sophisticated market. Agents and distributors with native fluency in Swedish can be beneficial in establishing a presence in the market.

Due to the proximity of Sweden to the UK, a direct sales approach is possible. E-commerce may be another good option as delivering products to Sweden is relatively easy.

Fast Facts

Ease of doing business

10th / 190 countries (World Bank, 2019)

Currency

Swedish krona

Business language

Swedish, English

Economic growth

1.2% (2019, IMF)

GDP per capita

£38,875 (IMF, 2018)

Time zone

GMT +1

Thinking of exporting to the EU? Click here to check the risk on invoices to overseas buyers, obligation free!

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