Swedish Expat Investment Options: Best Local and Offshore Investments

What are the best investment options for Swedish expats?

The best Swedish expat investment options include maintaining diversified offshore accounts, investing in global funds, and taking advantage of both Swedish and international real estate markets.

Some prefer to keep a portion of their wealth in Sweden for familiarity and potential krona appreciation, while others seek more advantageous tax and regulatory environments abroad.

Sweden has one of the most globally mobile populations, and managing wealth as a Swedish expat requires balancing opportunities both at home and abroad.

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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.

Investing as a Swedish expat

Expat investing in Sweden — or while living overseas — is heavily influenced by your tax residence and long-term financial targets.

If you remain a Swedish tax resident, your worldwide income is taxable in Sweden, which has one of Europe’s highest overall tax rates. However, non-resident Swedes typically pay tax only on Swedish-sourced income.

For those living abroad, the best investments for Swedes often include diversified, multi-currency portfolios using international ETFs, global bonds, and offshore accounts.

Due diligence and professional advice are essential, especially for those living in high-tax or high-inflation jurisdictions.

For long-term investors, distressed real estate and private credit opportunities can also form part of a globally diversified strategy.

How to invest as a Swedish expat

To invest as a Swede expat, start by setting up secure channels for international banking and brokerage access, either through Swedish institutions that cater to expats or offshore platforms.

These platforms make it easier to hold diversified assets.

Working with a financial advisor familiar with Swedish expat investment options can help structure portfolios that balance local exposure with offshore diversification.

Many expats also use tax-efficient vehicles or capital insurance accounts if they retain ties to Sweden.

Before making any commitments, review double taxation agreements (DTAs) between Sweden and your host country, and ensure compliance with both tax authorities.

This helps prevent overpayment and ensures transparency in reporting investments in Sweden and abroad.

Is investing in Sweden worth it?

It is a good idea to invest in Sweden as it offers political stability, strong financial regulation, and exposure to innovative sectors such as clean energy and technology.

However, high taxes and a strong krona can cut returns. Swedish expats can mix investments in Sweden for familiarity with offshore or host-country assets for growth and diversification.

For Swedes living abroad long term, investing internationally often offers better tax efficiency, flexibility, and global exposure than concentrating assets solely in Sweden.

What are the best investment options in Sweden for expats?

The best Swedish expat investments include Swedish stocks, mutual funds and ETFs, pension accounts, real estate, and government and corporate bonds.

• Swedish Mutual Funds and ETFs: Ideal for long-term growth with exposure to the Nordic and EU markets. UCITS-compliant funds offer diversification and strong investor protection. Many Swedes invest through local providers, though expats should confirm if their brokerage allows non-resident accounts and whether local reporting applies in their new country.
• Pension Accounts (ISK or Kapitalförsäkring): Tax-efficient vehicles for residents, though expats should confirm eligibility and double-taxation rules. However, once you become a non-resident, you may no longer be able to contribute to or open new accounts. Existing investments can usually be retained, but future tax benefits depend on your new country’s double taxation agreement with Sweden.
• Real Estate: Property in major cities like Stockholm, Gothenburg, or Malmö remains a stable store of value Swedish expats. Non-residents can own property in Sweden, but capital gains and rental income are typically taxable in Sweden. Consider local maintenance costs and currency exposure when investing from abroad.
• Government and Corporate Bonds: Sweden’s AAA-rated debt offers security, though yields are modest compared to international options.
• Swedish Stocks: Domestic equities offer exposure to Sweden’s economy and can provide international diversification if the companies operate globally. For expats, be mindful of dividend withholding taxes, reporting requirements in your new residence, and any brokerage limitations for non-residents.
  

If you plan to stay abroad long term, maintaining some assets in Sweden can preserve ties and hedge against future relocation, while building most of your wealth internationally can improve tax efficiency and diversification.

Best Offshore Investments for Swedish Expats

Some of the best Swedish expat investment options offshore include:

• International ETFs and Mutual Funds: Global equity and bond funds allow exposure across different regions, sectors, and currencies. These are suitable for expats seeking growth and inflation protection outside Sweden’s domestic market.
• Offshore Accounts in Stable Jurisdictions: Jurisdictions like Luxembourg, Switzerland, and Singapore are known for strong investor protection, multi-currency flexibility, and tax-efficient structures. Platforms and investment bonds offered there allow Swedish expats to consolidate global assets efficiently.
• International Real Estate: Long-term, income-producing properties abroad diversify geographic and currency exposure. Locations in southern Europe, the UK, or the UAE are particularly popular with Swedish expats looking for both lifestyle and investment value.
• Host-Country Retirement Plans: Swedish expats may benefit from pension contributions or tax-advantaged savings in the country where they live. They can explore these local plans and coordinate them with existing Swedish pensions to avoid overlap or double taxation.

Swedish Alternative Investment Options

Swedish expats can explore alternative investments like:

• Private Equity and Venture Capital – Especially attractive for those interested in the Nordics’ thriving tech ecosystem.
• Green Energy and ESG Funds – Sweden leads in sustainability and renewable projects, both domestically and abroad.
• Commodities – Provide hedges against inflation and currency fluctuations.

Offshore Company Structures for Swedish Expats

Some high-net-worth Swedes establish offshore companies or trusts to manage assets efficiently and maintain confidentiality.

These entities can also help streamline estate planning and reduce exposure to Swedish inheritance tax.

However, compliance with OECD reporting standards and Swedish CFC (Controlled Foreign Company) rules is essential.

Swedish Tax Residence

Tax residency in Sweden is based primarily on where you live and your personal and economic connections to the country.

You are considered a Swedish tax resident if you live in Sweden for more than six months a year or maintain strong ties — such as owning a home or having close family in Sweden — even if you temporarily live abroad.

Does Sweden tax foreign income?

Yes, Swedish tax residents are taxed on their worldwide income.

Under Sweden’s six-month rule, foreign income may be exempt from Swedish taxation if:

• You work abroad continuously for at least six months, and
• The income is taxed in the country where you work.

If you meet these conditions, your foreign salary or income is not subject to Swedish tax, though you may still need to report it to the Swedish Tax Agency for documentation purposes.

Meanwhile, non-residents are taxed only on Swedish-source income.

Swedish expat tax relief

For Swedes living abroad, tax relief may apply through double tax deals, which prevent paying tax twice on the same income in both Sweden and your host country.

Sweden has another tax relief for expats that applies to individuals who qualify for the expert tax relief scheme designed to attract highly skilled foreign workers.

Under this program, 25% of your salary and benefits can be exempt from income tax for up to five years, provided your work meets specific criteria set by the Swedish Tax Agency.

Besides double tax treaties and the expert tax relief scheme, Swedes working abroad may also benefit from the six-month rule mentioned earlier, which provides an exemption on foreign employment income under qualifying conditions.

Do expats pay tax in Sweden from UK (or elsewhere)?

Yes, if you’re a tax resident in Sweden, you’re generally taxed on your worldwide income, including earnings from the UK.

But thanks to the double taxation agreement between Sweden and the UK, you won’t pay tax twice on the same income.

Tax paid in one country can usually be credited or exempted in the other, depending on the income type and treaty rules.

Sweden tax on investments vs host countries

When comparing Sweden tax on investments with other countries, Sweden generally applies higher personal income tax rates but offers extensive social and legal protections.

By contrast, many host countries like the UAE or Singapore impose little or no tax on investment income. That makes them more attractive bases for expats seeking efficiency.

Investment income in Sweden such as dividends, interest, and capital gains is taxable, though structured accounts like ISK simplify reporting and cap effective taxation.

For long-term Swedish expats, using offshore investment platforms or holding assets in low-tax jurisdictions can balance exposure to both systems while staying compliant with Swedish reporting rules.

What happens to investments when you move abroad from Sweden?

You can retain Swedish investments even after moving overseas, but tax treatment may change, especially once you become a non-resident for tax purposes.

Some investment accounts may lose their Swedish tax advantages, and foreign income rules could apply in your new country of residence.

It’s best to review your portfolio and residency status with an international financial advisor to ensure your investments remain tax-efficient and compliant in both Sweden and your new country.

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