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Salary in London vs Stockholm

Evaluating a job offer

MinnieLou
post 20.Jul.2017, 06:09 PM
Post #1
Joined: 20.Jul.2017

Hi everyone,

I've been offered a job in Stockholm but as much as I've googled and researched salaries and cost of living I'm still feeling quite confused as to whether the salary offer is good for me or not.

I am a Brit and in London, UK would be looking for a role that paid around £40,000 a year. The job I've been offering in Stockholm will pay me around the same (£40,000 - £45,000).

As I said earning £40K in London would suit me fine with regards to living and spending but would the salary offer I have been given for Stockholm be equivalent over there? Everything I have read says the cost of living in Stockholm is less so I should actually be better off, but whenever I've visited I have found food etc so expensive compared to even the most central parts of London so I'm not sure I can believe what I've read!

Any advice would be much appreciated!
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delta76
post 20.Jul.2017, 07:00 PM
Post #2
Joined: 4.Oct.2014

Housing in London is crazily expensive, even more expensive than Stockholm - which is no where near "cheap"
The tax is higher in Sweden, but you get better social benefits in there.
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Svedallas
post 20.Jul.2017, 09:09 PM
Post #3
Joined: 21.Apr.2016

I would say Stockholm is more expensive - this is because you are paying more on income tax.

Even though rent might be lower than London, you will pay the price elsewhere - transport, food, restaurants, alcohol (double the cost) and clothing - VAT is 25%.

Disposable income would be lower in Stockholm.
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TLSucks
post 21.Jul.2017, 12:09 AM
Post #4
Joined: 12.Dec.2013

QUOTE (Svedallas @ 20.Jul.2017, 09:09 PM) *
I would say Stockholm is more expensive - this is because you are paying more on income tax.Even though rent might be lower than London, you will pay the price elsewhere - tra ... (show full quote)


You have to pay NI on a UK salary, while in Sweden that is covered entirely by payroll tax. Thus a £40k salary in Sweden is actually comparable to a £52k salary in the UK.

On £40000 in London you are left with £30367 in your pocket after tax + NI (not including council tax):
http://www.netsalarycalculator.co.uk/40000-after-tax/

On £40000 in Stockholm (actually £52k cost for the employer) you are left with £30604 in your pocket:
http://www.ekonomifakta.se/Fakta/Skatter/R...KMG5G2iLHW2Pox3

Rent and public transportation is much more expensive in London. Restaurant prices are similar and groceries are cheaper in London:
https://www.numbeo.com/cost-of-living/compa...city2=Stockholm
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Temp
post 21.Jul.2017, 09:28 AM
Post #5
Location: Stockholm
Joined: 14.Jun.2006

It's the alcohol costs that will kill you when out smile.gif

As it seems roughly the same after tax, then the decision is most likely to be about the type of lifestyle you want.

Exciting, buzzing, large range of places, culture, open mindedness, large => London

Nature, access to the outdoors (hiking, running, kayaking, skiing, ice skating, the wonderful archipelago...), some culture, less variety (though easy access to Norway, Danmark, Finland...) => Stockholm

Both cities offer a very different experience - and certainly trying to live like you would in London in Sweden is a route to poverty; but living a more Swedish way in Sthlm can be fun and an experience you wouldn't get in London.
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MinnieLou
post 21.Jul.2017, 02:08 PM
Post #6
Joined: 20.Jul.2017

Thanks everyone! That's all super useful information, i really appreciate you taking the time to help me out smile.gif
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yet another brit
post 23.Jul.2017, 06:49 PM
Post #7
Joined: 5.Jan.2013

That is actually a pretty optimal salary here - you would get (from the state) maxed contributions into a SERPS-type pension (paid from your employers tax), as well as likely a top up from the employer. In UK parlance, it is effectively going to be coming with a full non-contributory pension. Even if you are only here for a few years, it will eventually pay out.

It is optimal because there is a threshold up to which benefits (including pension) linearly increase, and above which the tax you pay goes to other people. At this point, the employer comes in instead, particularly for pension. Therefore, find out what pension package is on offer from the employer alongside (as a top up to) the state one.
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Mib
post 26.Jul.2017, 09:29 PM
Post #8
Joined: 7.Jul.2006

If you pay a mortgage in Sweden, you'll get 30% tax relief on the interest part up to 100K per person, per year.

830kr p/m for a monthly travel pass that includes underground, busses, local trains and even some boat services. You don't need a car! If you do need one occasionally, there are several car clubs to pay by the minute, hour or day.

You get extra pay on vacation days, which typically works out at 0.008% per day, so 320kr per day based on 40,000kr p/m.

If you make a loss on shares, you can get tax relief. You can only offset profits with losses in UK.

There's no separate Council tax. It's paid via your salary tax, which is fairer. There is a small property tax, which is paid via your monthly maintenance costs if you own an apartment. That fee normally includes, water, heating, external maintenance, rubbish collection, basic TV channels and property tax.

If you travel for as part of your job, you can claim a daily fee of around, £20 a day. You can't if your company gives you a daily allowance on top of your expenses. You get more the further you travel away and it must be at least 1 night.

If you have children in Sweden, then it beats England by miles with paid leave up to 380 days, very cheap nursery care, paid parental leave to cover child sickness.

You do have to pay to see a Doctor at 200kr or more for each visit, but limited to about 1100kr each year. You pay about 100kr per day when you stay in hospital. These are rough figures.

All in all, it's swings & roundabouts. As my American cousin said, they pay less taxes, but they end up paying for it in the end.
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