• Sweden's news in English
 
app_header_v3
Introducing... Your finances in Stockholm

Introducing... Your finances in Stockholm

The Local · 19 Jun 2014, 17:23

Published: 19 Jun 2014 17:23 GMT+02:00

I'll soon be moving to Stockholm and I've just taken all the Swedish kronor that my local bank had available. Now I'm hearing talk of a cashless society. Won't I be able to use my notes and coins?

It's certainly true that Stockholm is further along the road of 'decashification' than pretty much every other city in the world. Some 73 percent of retail payments are made with plastic and you can even pay street vendors of the city’s charity magazine with your credit card. But don't worry: you can still use paper and metal in most places.

Wait a second. 'Most places'? Where can't I use cash?

Most buses. And, strangely enough, many banks.

So much for Money, Money, Money.

I wondered how long it would take before that cropped up. But you'd do well to consider a lyric that didn't make it to the final cut of the song:

You work all night
You work all day
You'll need a bank
If you're to stay…

What Benny and Björn were trying to say is that for many administrative reasons beyond paying bills, a Swedish bank account is essential. But first you will need a personal number (personnummer) and a few other bits of documentation. Get in contact with the Swedish Tax Office to get it sorted. Now.

Can’t I just pay my bills using my existing foreign bank account?

That's perfectly possible through Forex, but you'll have to pay a fee. There is good advice on how to do this at visitstockholm.com/moving-to-stockholm/.

Let's talk about tax.

Must we?

Yes.

OK. Sweden has a very efficient system for paying taxes, with perhaps some of the most helpful 'customer' service in the country. Most of your annual return will be taken care of automatically and if everything's in order you'll just have to send the authorities a text message to confirm your statement. How, and how much, you pay, depends on how long you are staying in Stockholm.

So how much will I have to pay?

Ah, the million kronor question.

A MILLION KRONOR??? I don’t mind high taxes but that’s ridiculous!

Sorry, bad choice of words.

But let's be honest about this: taxes are high in Sweden. The income tax rate is usually around 30 percent and the standard VAT rate is 25 percent. But someone has to pay for the (almost) free healthcare, daycare and university education. And, of course, if things don't go to plan, the unemployment insurance scheme is generous.

That’s great. But I’m not planning to be here forever. Why do I have to pay for all of that?

Well, perhaps you don’t. If you’re only here temporarily – and if your job falls into certain categories such as executives, scientists and other experts – then you may be entitled to pay tax on only 75 percent of your income.

Some paperwork is required and rules do apply so make it your business to find out if you are entitled to this perk.

So where should I start?

With some proper advice from the good people at the City of Stockholm and total commitment to getting to know your new best friend – your personal number.

This article was produced by The Local in association with Stockholm Business Region.

The Local (news@thelocal.se)

Today's headlines
How a Swedish rocker saved the life of this cute baby elk
Erik Brodén's daughters Tyra and Brita with the elk baby. Photo: Private

Probably the sweetest story you'll read today.

Man sentenced over dinner party murder in west Sweden
The man during a preliminary court hearing last year. Photo: Björn Larsson Rosvall/TT

He stabbed his friend at a dinner party and attempted to kill two others.

The Local List
Ten reasons why Varberg is the best place in Sweden
The Local shows some love for Varberg. Photo: Mikael Pilstrand/MarknadVarberg

Forget Stockholm, Gothenburg or Malmö, it looks like seaside town Varberg is Sweden's place to be.

Zlatan on his future: 'I made my choice a long time ago'
Zlatan Ibrahimovic at Thursday's press conference. Photo: Marcus Ericsson/TT

Go on then, Zlatan, tell us what it is.

Nooo! Rain and floods set to dampen Swedes' summer joy
Rain in Sweden earlier this year. Photo: Hasse Holmberg/TT

So, that was the Swedish summer? Nice while it lasted.

Homes
Slow design: How Nordic style can make your life better

The world has long been hungry for Nordic lifestyle, with its love of design, nature, and light. But this is about much more than painting your floorboards white or throwing a sheepskin on a chair – it’s a mindset that informs everyday life.

Report: Swedish information security 'not good enough'
Information security in government agencies has been criticised. Photo: Janerik Henriksson/TT

Low levels of security could lead to significant consequences, the state auditor warned.

Man arrested in Malmö after armed attack on car
Damaged cars at the scene of the incident. Photo: Johan Nilsson/TT

The incident occurred in the south of the city.

What's on in Sweden
Four fantastic foodie events across Sweden this weekend
It's beer and food galore in Stockholm this weekend. Photo: Brooklyn Brewery Mash

Are world foods your thing, or do you prefer a banquet with beer? Either way you're covered in Sweden this weekend.

Sweden votes yes to controversial Nato deal
A Nato exercise in Spain 2014. Photo: AP Photo/Daniel Tejedor

A bid to stall the decision was voted down.

Sponsored Article
How to find student housing in Malmö: 5 tips
Gallery
People-watching: May 25th
Sponsored Article
Can you afford to live in Stockholm? (Hint: yes)
Society
WATCH: Why Swedish handyman wore pink high heels for feminism
Sport
LIST: Top-ten ridiculous things Zlatan has compared himself to
Blog updates

20 May

Editor’s blog, May 20th (The Local Sweden) »

"Hello readers, Do not mention Abba! Or cuckoo clocks! Our most read article this week was…" READ »

 

17 May

What about “att”? (The Swedish Teacher) »

"Hej! It often seems like the small words are the ones that cause the most confusion.…" READ »

 
 
 
Sponsored Article
'Sweden gives artists the space to follow their dreams'
Business & Money
Why Swedes don't want the euro
Sponsored Article
Stockholm makes it easier for refugees to meet startups
Fastighetsbyrån
Gallery
Property of the week: Vika, Falun
National
Is this the most Swedish tattoo ever?
Gallery
People-watching: May 20th-22nd
Sponsored Article
Food, fun, and reliable sun: Summer in Dubrovnik
National
How to really annoy a Swede abroad
Sponsored Article
How Stockholm startups help new employees feel at home
National
How this war veteran is warming hearts in Sweden
Gallery
People-watching: May 18th
Sponsored Article
'Only soft power can defeat radicalism'
National
How this Swede's viral ad totally nailed Stockholm's housing crisis
Sponsored Article
Why Stockholm attracts so many successful researchers
Gallery
Property of the week: Vasastaden, Gothenburg
Lifestyle
The best Swedish cities for dating
Gallery
People-watching: May 13th-15th
Sponsored Article
'Sweden gives artists the space to follow their dreams'
Culture
BLOG: Eurovision as it happened
Sponsored Article
Retiring abroad: ensuring your health is covered
National
Why a 116-year-old Swede isn't the world's oldest woman
Sponsored Article
Can you afford to live in Stockholm? (Hint: yes)
National
Youth unemployment falls in Sweden
Gallery
People-watching: May 11th
Gallery
People-watching: May 6th-8th
Politics
Why Sweden's Greens are in free fall
National
Can these cartoon Swedes help foreigners blend in?
National
Why this fearless woman is the talk of Sweden
National
Sweden set for sunny weekend
3,307
jobs available
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
psdmedia.se