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Working in Sweden For Members

How good is Sweden for digital nomads?

Chiara Milford
Chiara Milford - [email protected]
How good is Sweden for digital nomads?
A person surrounded by their devices at a pavement café in Stockholm. Photo: Christine Olsson/TT

High taxes, a high cost of living and a tricky accounting system make Sweden less ideal for 'digital nomads' than a tropical getaway like Bali, but there are some definite perks to making Sweden your next digital home. Here’s our list of the pros and cons.

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In the wake of the Covid pandemic, working remotely has become the new normal, but the concept of flexible, remote working is really nothing new. Long before the pandemic, legions of freelancers and remote workers had cottoned on to the fact that all they really needed to carry out their jobs was an internet connection and a laptop - and that travelling the world wasn't something that needed to be reserved for holidays.

More and more countries in Europe are now trying to woo these 'digital nomads'. Estonia and Spain both have special 'nomad visas', and Italy voted one into law last March (although it has yet to be implemented, and may end up being shelved). 

So how does Sweden stack up? 

PROS

The new ‘talent visa’

As of last June, Sweden has made it easier for non-EU citizens with an advanced level degree to move to the country for up to nine months while they look for work or start their own business. It's not exactly a 'nomad visa', but it does make make getting a visa relatively painless if you are sufficiently highly educated, especially if you work as a freelancer and can set up your own company in Sweden. 

To qualify for the “resi­dence permit for highly quali­fied persons to look for work or start a busi­ness”, you need to have an advanced degree, and prove that you have enough funds or income to support yourself during the period for which you are applying for a permit and have money to cover the cost of your journey home. You also need comprehensive health insurance valid for healthcare in Sweden. 

READ ALSO: How do you apply for Sweden's new talent visa? 

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Obviously, if you're lucky enough to have citizenship in another EU country, you'll automatically have the right to live and work in Sweden without applying for any sort of residence permit first. 

Many other nations like Australia, Canada, Japan - and now the UK after Brexit - have agreements with the EU that allow their citizens to spend up to 90 days in the Schengen Area without needing a visa. However, this visa waiver programme does not apply to those planning on undertaking paid work in the Schengen Area, so you will still need a work permit to work in Sweden, even if you're not planning on staying longer than 90 days.

You will also have to register with the Swedish Tax Agency if you're an EU citizen planning to stay for longer than three months.

Fast internet

Sweden has one of the fastest internet speeds in the world (although if you’re looking to move to a Scandinavian country, Norway and Denmark rank higher) and internet is relatively cheap, costing an average of less than €30 a month. Around 90 percent of the population enjoy a stable internet connection and you can find 4G in most of the country. A shack in the Swedish woods is often more likely to have a blazing fast fibre optic internet connection than a toilet with running water.

Everyone speaks English

When you’re setting up an internet service provider, chances are you’ll be able to talk to them in English. Sweden ranks second on the list of countries with the most non-native English speakers in the world. The working language is English for many locals, and Swedish children start learning English at a young age. You won’t have trouble ordering an oat milk latte with extra foam or finding your way around.

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Lots of co-working spaces

There are 175 co-working spaces across the country, with many companies opting to rent office space collectively since the pandemic. In Stockholm, Gothenburg and Malmö it is easy to find shared office space, either through freelance collectives, or through more corporate providers.

Here's The Local's list of ten co-working spaces in Stockholm.

Thriving tech scene 

Stockholm is second only to Silicon Valley in terms of the number of so-called unicorns (startup companies valued at more than $1bn) per capita, while Stockholm and Malmö are also among the leading cities it the world for game development. 

The KTH Royal Institute of Technology in Stockholm draws in young tech talent from all over the world and has a well-established incubator programme to encourage students and alumni to start spin-off tech companies. 

Malmö, Stockholm, and Gothenburg also have a well-established informal tech scene, where web developers, programmers, and other tech professionals can share new ideas. You can find a lot of them on the Meetup app. 

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CONS

It’s quite expensive

With one of the highest rates of income tax and a high tax rate on goods and services, stuff in Sweden just costs more. This is balanced by a relatively high average income, but if you’re getting paid a salary by a non-Swedish company, it might not stretch as far in kronor.

As a freelancer, once you're making good profit, you could be paying nearly 50 percent in total taxes to operate a business. You also don't get all the same benefits as employed people in Sweden do, such as 25 days holiday, sick leave, and the right to get paid leave to look after a sick child, and you may also be paying for private health insurance on top of that. In this respect, you're paying for a system which you can't use.

Having said this, with the krona now historically weak against the euro, dollar and pound, Sweden is cheaper than it has been for decades, so if you're a true nomad and have been planning on checking out Sweden for a while, this is not a bad time to do it.

READ ALSO: 

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A complex accounting system

Invoicing in Sweden can be tricky, even though the information provided by the Tax Agency is available in English as well as Swedish. 

If you're employed full-time by a company abroad, you will have to show the Swedish Tax Agency a copy of your contract upon arrival, including some mention of the fact that you'll be working in Sweden.

If this doesn't apply to you, you'll need to either register to pay F-skatt as a self-employed person (which usually means you need at least two 'clients', so you can't just register as self-employed and continue working for the same company you did before,) or set up your own company (read our guide here).

Swedish freelancers tend to keep meticulous records of each tiny item they purchase and have a detailed knowledge of every possible tax rebate they can claim, all in the hope of bringing their effective tax rate closer to that of someone employed on a salary. 

It might make sense to use an umbrella company like Cool Company or Frilans Finans which puts you in the position of an employee in return for a fee, so that you don’t have to deal with the tax system yourself.

You won’t meet anyone

While working from anywhere is relatively easy in Sweden, it does significantly reduce your chances of meeting people and forging relationships. Swedes are a reserved bunch and they tend not to speak to people outside their friendship group (unless quite drunk). Finding a full-time job in the digital sector might be your best bet for settling in and finding community.

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