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Sweden has a Stable Legal Framework that Encourages Investment

| News | Corporate Law and M&A

Ignacio Aparicio took part in the conference “Business Opportunities in Sweden”, organized by the Chamber of Commerce of Valencia

Sweden's economy is a mixed economy oriented mainly towards export and international trade and has a stable, legal framework that favours foreign investment.

This was made clear by Ignacio Aparicio, partner in Commercial Law of Andersen Tax & Legal, during the conference on Business Opportunities in Sweden, organised by the Chamber of Commerce of Valencia and in which Rafael Ripoll, Swedish Consulate in Valencia and of Andersen Tax & Legal council, also took part.

During his speech, Aparicio explained the main characteristics of the legal framework and aspects to be taken into account by companies wishing to do business in Sweden, which, according to the Forbes ranking, is at the forefront of countries where it is easier to do business worldwide. In fact, he said, Sweden is a country with a great openness to foreign trade, which represents about 84% of GDP, and the European Union is its first partner, as it is the destination of half of exports and most imports come from this area.

Thus, he explained that there is freedom to import products from Member States or third countries in free circulation with Member States or third countries and with some exceptions relating to quantitative restrictions, surveillance measures or special licences for specific goods, to which he added that the goods of Member States are exempt from payment of tariffs and are subject to Common Customs Law.

Andersen Tax & Legal partner reviewed the most commonly used formulas for setting up in Sweden, including the branch, limited companies, joint ventures or the European Economic Interest Grouping.

Ignacio Aparicio also referred to taxation in Sweden and explained, among other things, that dividends to foreign partners in the EU are exempt from withholding tax if they have a stake of more than 10% and a portfolio stake of more than one year, while recalling that in 1976 an agreement was signed with Spain to avoid double taxation.

Similarly, some aspects of Swedish labour regulation, based on a deep-rooted culture of collective bargaining, were analysed.

During the day it became clear that Sweden is one of the 20 most important economies in the world, with a high purchasing power characterized by high economic, political and social stability. An economy open to the outside world and a multilingual and highly skilled workforce.

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