Sweden angers the rest of EU with their new tax

admin / February 12, 2018

New tax policy coming from Sweden has caused quite a stir in the EU and in the rest of the world as well. The policy represents a strange departure from how businesses are usually taxed in Sweden and in the rest of EU.

This sudden change has come as a bit of a surprise and caused a few problems from the Swedish diplomacy in Brussels, but it works where it matters the most – in the stock market and therefore on everyone’s bank statement.


How it works?

Sweden is mostly known for its left leaning policies and so-called nanny state that takes care of its citizens from the day they are born to the day that die. That sort of state doesn’t really sound like it would be cutting the corporate tax rate, but that is exactly what they did and it’s yielding results in the stock market.

This has helped Swedish entrepreneurs get off their feet and start investing. This new income of fresh capital is opening new jobs and driving up the profits in the financial sector as well. The economy overall has started to grow.


The response

The response to this news has been overwhelming and it can be divided into two main groups. The EU countries and the EU administration itself are skeptical about it and there was a lot of harsh talk among the EU diplomats.

On the other hand, the companies are thrilled about the whole prospect and it shows in practical terms. A lot of companies are making plans to move their business to Sweden and start working there in order to be eligible for the tax break. This will firstly be done by the companies that work in tech and don’t require that many employees and infrastructure, but others will follow along.



Small investors and increasingly large ones as well are finding this opportunity interesting. The markets are always conservative and afraid of risks so it may take a while before the affects could be measured.

However, it can already be noticed that the investors are cashing in on this change because the companies have more money at their disposal. Some of it will go directly to the paychecks and the stakes of shareholders, but most of it will actually be noticeable when it’s turned into investments.


The Sweden is changing its tax laws and the effects are starting to show.

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