Sweden is one of the most popular countries in the world. Offering a great quality of life for its citizens including ex-pats and retirees, the beautiful landscapes and historic buildings are just the tip of the icebergs. The architecture, delicacies, people, and climates offer a life away from the ones retirees are used to. If you want to retire in Sweden, this guide covers everything you should know about living in the country.
The housing system in Sweden
The prices of accommodations in Sweden are affordable. However, Sweden is an expensive country to live in. The high cost of living does not come from rent; it comes from expensive household commodities, transportation, and other expenses. On average, house rents in Sweden are 32% lower than in the U.S. The rent of a one-bedroom apartment in the U.S. costs almost twice the cost of a similar apartment in Stockholm. If you are looking to purchase an apartment instead of renting one, you are likely to pay around 1000 per square foot. Whichever you choose, the prices are still lower compared to other top countries in the world.
Visas to Sweden
If you are from an EU member state, you do not require a visa to reside in Sweden. All you need is to apply for a permanent permit. However, for a non-EU looking to retire in Sweden, you must apply for a visa and then a residence permit. Citizens from the U.S. do not require tourist visas to visit Sweden if they don’t plan on staying for long. If you are a U.S. citizen and you are planning to retire to Sweden, you will need a Schengen visa, which you must apply for before leaving your home country. Apply at a Swedish consulate or embassy in the U.S. you must provide a valid passport, financial statements, et cetera during your application. The processing time for a residence visa varies, so you might need to wait before booking a one-way ticket.
Healthcare in Sweden
Sweden has a culture that encourages its citizens to enjoy outdoor activities regardless of the season. People engage in cycling and hiking whenever the weather is warm and skating or skiing when it is winter. It is safe to say that performing these acts has increased the health of Swedish residents. All thanks to its remarkable healthcare system, Swedish residents have access to quality public healthcare, which is funded by the taxes on their income. Sweden has one of the best public healthcare in the world. Due to this, health insurance is rare among the residents. Expats have access to the public healthcare services provided they have a healthcare card. When you are in Sweden, ensure you apply for a personal identification number at a local tax office to be issued a healthcare card.
Taxes in Sweden
People pay high taxes in Sweden, but taxes are paid more on consumption than income earnings. Taxes for ex-pats in Sweden varies depending on your stay in the country. If you are staying for six months or longer, you will pay a higher tax. However, if you are staying for less than six months, you might pay fewer taxes. Tax laws apply to only residents working in Sweden. However, you might be taxed on foreign-earned income provided you have been registered as a resident. This includes your pension as a retiree. To avoid paying double taxes to Sweden and your home country, you should hire the services of a tax expert to help you understand the tax codes.
Safety in Sweden
Sweden is a safe country, with low crimes and few cases of thefts, kidnaps, and threats against foreigners. The crime rate in Sweden is indeed lower than that of the U.S. but this is not to say that ex-pats in the country cannot be harmed. It is advisable to avoid trouble and stay safe. Ensure you follow the laws of the city and avoid conflicts as much as possible. If you ever find yourself in an unsafe situation, call the police and if you need emergency medical care, this is available in all parts of the country.
Retiring abroad is a bit difficult, but with the right agents or financial advisors, you can understand all you need to learn about retirement abroad, taxes on pensions, etc.
