Exporting to Sweden

There are advantages and also potential challenges for Northern Ireland companies doing business in Sweden.

Sweden’s approach to international business is modern, open, and friendly. Businesses here welcome international partnerships, and there is a skilled, well-educated workforce. With a corporate tax rate that is low by international standards, Sweden is an easy country to operate in.

Advantages of exporting to Sweden

Sweden can offers numerous benefits to companies looking to do business in the region including:

• dual market access allows businesses in Northern Ireland to trade goods freely with France as it is part of the European Union. Read more about how to take advantage of dual market access.
• Sweden’s approach to international business is modern, open, and friendly.
• businesses in Sweden welcome international partnerships, and there is a skilled, well-educated workforce.
• With a corporate tax rate that is low by international standards, Sweden is an easy country to operate in.
• Sweden’s sophisticated consumer market has proven popular with international brands looking to introduce new products.
• Sweden is among the most competitive, innovative, and globalised nations in the world.
• The country provides a stable economy, a skilled labour force, and sophisticated consumers.
• The country is also recognised globally for its favourable business environment, making it an attractive destination for entrepreneurs and companies alike.

Challenges of exporting to Sweden

As a member of the European Union (EU), doing business in Sweden is very similar to doing business in the UK. If your product or service is successful in the UK, there’s a good chance you’ll be successful in Sweden.

However, labour law is intricate and the relationships between employers and unions are strong.

The European Union (EU) is an economic and political union of 27 countries.

Dual market access allows businesses in Northern Ireland to trade goods freely with Sweden as it is part of the European Union.

What is dual market access?

Dual market access allows businesses in Northern Ireland to trade goods freely with both Great Britain and the European Union.

This means goods can move from Northern Ireland to Great Britain and the EU without customs checks or tariffs, offering businesses a competitive advantage in both markets.

What are the benefits of dual market access?

With dual market access, your manufacturing business based in Northern Ireland can:

• Expand your customer base: Sell goods seamlessly to both GB and EU markets.
• Avoid trade barriers: no customs declarations or tariffs when trading with the EU.
• Enhance your competitiveness: access to two major markets provides a unique edge over businesses operating in only one.
• Reduce compliance costs: Northern Ireland maintains regulatory alignment on goods with EU regulations and there are no additional approvals required to place qualifying goods on the on the market in GB.
• Simplify your supply chains: businesses in Northern Ireland can act as a gateway between the UK and EU, leveraging their unique position to enhance logistics and distribution networks.

Dual market access presents opportunities for businesses meaning that Northern Ireland-based companies can strengthen relationships with both UK and EU customers while maintaining supply chain efficiency.

Read more about how you can maximise the opportunities of dual market access.

There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.

Infrastructure and construction

Sweden’s transport plan for 2018 to 2029 is worth around £60 billion. It features new rail and road projects, upgrades to existing infrastructure, and an increased allocation for maintenance. Sweden also needs to build thousands of energy-efficient homes with a low carbon footprint to meet current needs and contribute to a 'greener' future.

Railway

Sweden aims to further modernise its railway network and increase capacity by building new passenger lines between its biggest cities. It will also digitalise the network to make operations and maintenance more efficient. There are opportunities in many areas of the rail supply chain.

Housing and construction

Sweden’s cities are expanding and so is the need for new housing. The Stockholm region alone has planned housing investment worth EUR 61 billion until 2040 (source: Invest Stockholm). Swedish construction companies cannot satisfy the demand, which offers great long-term opportunities for companies looking to enter the market.

Smart cities, green construction and mobility

Like many places, Sweden is seeking to de-carbonise construction and its transportation systems, shifting from fossil fuel-powered vehicles to suitable alternatives. Ownership of electric vehicles is growing. Use of micro-mobility is widespread, such as e-scooters. Non-battery electric options are being researched and trialled, such as electric roads.

Food and drink

The demand for international food and drink in Sweden has grown, reflected in the ranges now available in supermarkets. The sector is dominated by 4 main retail groups and the government-owned alcohol monopoly. The route to market is normally through a distributor.

Demand for new food and drink categories

There are opportunities for UK producers of health, organic, vegetarian and plant-based food as well as craft alcoholic drinks. There is also demand for innovative and niche products with strong branding, and private label products.

Mature market

If you have a product with a strong, unique selling point, sophisticated packaging and a clear marketing strategy, there is a good chance you will find a receptive consumer market in Sweden.

Energy

Sweden’s target is for 100% fossil free electricity generation by 2040 and to reach net zero by 2045. The Swedish government announced ambitions to build at least 2.5 GW of new nuclear generation by 2035 and 10 GW by 2045

New nuclear

Sweden recognises the UK’s experience and expertise in developing Hinkley Point C, developments in small modular reactors, and UK businesses are ideally placed to support Sweden’s future new build programme.

Bio-CCS

The Swedish Energy Agency announced 20 billion Swedish Krona (SEK) support packages to create market conditions for the deployment of Bio-CCS. There are opportunities for UK companies with expertise in this field or manufacturing products to export.

Renewable energy

Sweden is switching to carbon neutral energy sources. Energy storage and grid solutions are needed as a part of this switch to renewable energy sources. There are opportunities for UK companies with expertise in renewable energy or manufacturing products to export.

Life Sciences

The ties between Sweden and the UK have been strong through political engagements, such as the bilateral memorandum of understanding signed in 2022 and the UK's industrial strategy, where life sciences is a key area. Additionally, commercial ties have been reinforced by companies like AstraZeneca and Glaxo Smith Kline. There are opportunities in biopharma, medtech, clinical trials, healthy ageing and more.

Biopharma

The Swedish biopharma sector is thriving, with numerous companies specialising in areas such as genomics, drug development and therapies. Partnerships or investment opportunities can be explored in these cutting-edge fields.

Medtech

Partnering with Swedish businesses on advanced medical devices including diagnostic tools, imaging equipment, and surgical instruments provides an option to enter the market. With the Swedish healthcare system embracing digital health solutions, there are opportunities within telemedicine, electronic health records, and mobile health applications.

R&D collaboration with academia and networks

Sweden is home to world-class research institutions, universities, science parks and networks that collaborate closely with industry. There are opportunities to partner with these institutions to advance R&D efforts, particularly in areas such as biotechnology, pharmaceuticals, and medical technology. There are over 3,000 companies involved in life science activities in Sweden to team up with.

There are a lot of things to consider before you start exporting to Sweden. It's essential to find out about local rules and regulations on tax and duty in your intended market.

VAT

If you’re registered for VAT, it may be possible to zero-rate the goods you export to Sweden, provided certain conditions are met.

Standard rate of VAT in Sweden is 25%. There may be reduced rates for certain products and services. For instance, food, accommodation and art is 12%.

Regulations

Rules and regulations depend on the goods. Special rules and regulations apply to living animals and animal products, plants, food, firearms and ammunition, alcoholic beverages, chemical products, medical products and narcotics, endangered species of animals and plants.

Services regulations

Information on rules for selling services and business travel to Sweden is available on gov.uk.

Trade barriers

Check for any reported barriers to trading with Sweden.

Report any trade barriers that are affecting your business so we can help fix them.

Check duties and customs

Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.

See current duties and customs procedures.

Routes to market

Sweden is an outward-looking and mature market. Overseas suppliers need to have a strong USP, sophisticated branding and a solid marketing strategy to succeed.

Options which may work well for you are:

• agents and distributors - using local agents or distributors with native fluency in Swedish is an effective way to develop a presence in this market
• direct sales - due to the closeness of the market, a direct sales approach is possible
• e-commerce - selling online or through e-marketplaces may be a good option for your company. It’s relatively easy to deliver products into Sweden. The Department for Business and Trade (DBT) can suggest online marketplaces to help you get started, see DBT’s Digital Exporting Programme.

Intellectual property

Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for businesses in Northern Ireland can be found through a network of IP attachés, based in key UK export markets.

Payment terms

Public authorities must pay for goods and services within 30 days or, in exceptional circumstances, 60 days.

Enterprises must pay within 60 days, unless agreed.

Business culture

Regular meetings and visits are important to build relationships. The market is competitive, and a strong unique selling point is helpful. English is commonly spoken in Swedish businesses.

Swedish companies tend to be less hierarchical than companies in many other countries when it comes to internal organisation. Swedish business culture tends to be focused around consensus decision making. Decisions can sometimes take a while to be made. Quite often meetings in market can involve a number of people from the organisation. Planning ahead is preferred by the Swedes. Appointments must be made in advance and meetings are clearly structured. Swedish companies prefer effective meetings with a little small talk. In negotiation, direct and straightforward communication is appreciated.

Punctuality is very important both when doing business and making social engagements. If late, it is recommended to phone.

Public procurement

Public procurement in Sweden follows the corresponding EU directive through the Swedish law on public procurement; Lagen om Offentlig Upphandling (LOU). The Swedish Competition Authority is the supervisory body.

Developing exports to Sweden could be a part of growing your business. But breaking into the market can be challenging. The right support and advice can significantly improve your prospects.

Invest NI offers a range of advice, plus additional support services for businesses trading with Sweden.

• Explore international markets – get support with market research and market visits.
• Exhibitions and trade missions - join trade missions and exhibitions to access new opportunities, strengthen relationships, and accelerate your business’s global growth.
• Export and capability development – access export and capability solutions to get the knowledge and skills to structure and build on your export activity.
• Export Health Check - assesses your business's readiness for exporting and get a tailored report sent to you, detailing your journey, next steps, practical tips, templates, and support available.
• Invest NI offers advice and support to help businesses maximise dual market access.
• Invest NI can advise on how to use digitalisation solutions to support your exports
• Invest NI can advise on financing your export business and may be able to provide financial support directly to businesses.

As well as Invest NI, there are other sources of support to assist with trading with Sweden.

• The Northern Ireland Chamber of Commerce (NICC) provides members with a range of opportunities and services to learn, up-skill and connect as they grow locally and internationally.
• Department for Business and Trade (DBT) in-market support - eligible UK businesses can access trade expertise and knowledge on exporting to specific countries from the DBT global network of international market hubs.
• A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
• Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.