Living in Stockholm, Sweden’s capital, is a dream for many due to the unique feeling it can easily transmit. The beautiful landscapes, innovative culture, quality of life and experiences you couldn’t have anywhere else. Just like the Gamla Stan, a kind of crossroad between past and present island. However, understanding the cost of living, the average salary to get around, and the relocation costs is essential for anyone planning to move. So, how much should I earn to live in Stockholm comfortably?
Everything starts with the lifestyle you wish to have and whether you are moving by yourself or with family. Let’s try to reach an average monthly number for both cases to balance what we can call “the necessary quantity to survive” and “the desirable quantity to live. To live comfortably in Stockholm, a monthly income of at least 1837£ to 2571£ after taxes is recommended. This amount covers essential expenses, occasional dining out, and some savings.
Housing, utilities, food, transportation, taxes, and emergencies must be considered to determine our final numbers. Let’s break down the primary expenses:
Housing: Housing is typically the most significant expense. Renting a one-bedroom apartment in the city centre costs around 881£ to 1469£ per month, ranging from 587£ to 1028£ SEK outside the city centre. Property purchasing is also quite expensive, averaging around 7348£ per square metre in the city centre.
Utilities and Internet: Utilities, including electricity, heating, cooling, water, and garbage, cost approximately 88£ to 146£ per month. High-speed internet can add 22£ to 36£ to monthly expenses.
Groceries and Dining Out: On average, a monthly grocery bill for one person is around 1837£ to 293£. Dining out in a mid-range restaurant costs about 18£ to 400£ per meal.
Transportation: Public transportation in Stockholm is efficient and reliable. A monthly pass for unlimited bus, tram, and metro travel costs about 68£.
Healthcare and Insurance: Sweden is highly subsidized, but health insurance is essential to cover additional costs. An individual can expect to pay around 110£ to 220£ annually for basic health insurance, which can rise to 367£ to 734£ annually for a family of four.
Childcare and Education: Childcare costs can be a significant expense for families. Public preschools charge around 110£ to 220£ SEK per month per child, depending on household income. International schools and private institutions can cost significantly more, ranging from 50,000 to 150,000 SEK annually.
Taxation in Sweden: Understanding the tax system is crucial when considering how much I should earn to live in Stockholm. Sweden has a progressive tax system, meaning the tax rate increases with higher income levels.
Expenses for Families: Most families have both parents working in Sweden, so most families of four, for example, can earn around 4409£/month. If you aim to send your kids to daycare or extracurricular lessons, your monthly income is around 3674£.
Yes, expats do pay taxes in Sweden. If you have lived and worked in Sweden for over six months, you are considered a tax resident and must pay taxes on your worldwide income. You’ll be taxed on your income if you fit in any of the descriptions below:
Permanent Home: Having a permanent home in Sweden means you have a residence available anytime. This residence can be owned or rented. The critical factor is the availability and continuous nature of the home.
Substantial Presence: This rule says that an individual living in another country who comes to Sweden to work for an amount of time (up to 183 days) can be exempt from paying taxes in Sweden. This is due to the legislation on special tax for non-residents (SINK). The 183-day rule is a joint standard many countries use. In Sweden, you are considered a tax resident if your stay exceeds 183 days in a calendar year. The days do not have to be consecutive; they are cumulative throughout the year.
Primary Ties: This includes family residing in Sweden, significant business activities, and social connections. Even if you do not have a permanent home or do not stay for 183 days, substantial connections might still make you a tax resident.
Tax Obligations: Once deemed a tax resident, you must report and pay taxes on your global income, including earnings from foreign sources. Non-residents are only taxed on income earned within Sweden.
Non-residents working in Sweden for a Swedish employer or a foreign employer with a permanent establishment (PE) in Sweden are subject to a flat tax rate of 25%, deducted at the source. This same 25% rate also applies to pensions paid by a Swedish source to individuals who are not tax residents in Sweden. Also, Sweden offers tax relief for foreign experts, researchers, and key personnel for up to three years. This relief can significantly reduce the tax burden.
In Sweden, you are considered a tax resident if you meet any of the following conditions:
Having a permanent home in Sweden means you have a residence available anytime. The critical factor is the availability and continuous nature of the house.
The 183-day rule is a common standard used by many countries. In Sweden, you are considered a tax resident if your stay exceeds 183 days in a calendar year. The days do not have to be consecutive; they are cumulative throughout the year.
Primary ties include family residing in Sweden, significant business activities, and social connections. Even if you do not have a permanent home or do not stay for 183 days, substantial connections might still make you a tax resident.
Once deemed a tax resident, you must report and pay taxes on your global income, including earnings from foreign sources. Non-residents are only taxed on income earned within Sweden.
In summary, the success of your relocation significantly hinges on partnering with a reliable moving company that offers both support and advice. At VanOne International Movers, our dedication extends beyond merely transporting your belongings; we serve as your partner in navigating the intricacies of international relocation. With the proper preparation and support, the daunting task of moving across borders can transform into a manageable and enjoyable experience. Ready to embark on your international move with confidence? Contact us today to ensure your journey is smooth and stress-free from start to finish.
Understanding how much you should earn to live in Stockholm is vital for anyone planning to move. By considering the costs of housing, utilities, groceries, transportation, and taxes, you can better prepare for a comfortable life in Stockholm. Whether you’re an expat or a local, ensuring a sufficient income is critical to enjoying everything this beautiful city offers.
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