The Ultimate Guide to Relocating from Sweden
Practical Tips and Essential Steps for a Smooth International Move
In previous newsletters, I discussed the reasons for leaving Sweden, moving to Spain and settling there with family. In this issue, I'm offering a practical checklist to assist anyone who might be planning a similar move.
Leaving a place where you've spent over a decade raising a family, building a good life, making great friends, and creating countless wonderful memories is never easy. However, once you decide to move, there's a lengthy list of tasks to handle.
Deciding between a short-term or long-term move?
This turned out to be one of the most challenging yet crucial decisions to make. Many other practical choices hinge on this one. For instance, should you sell your house or rent it out? Keep your car or sell it?
When moving to another country, it's vital to be confident about your decision. But how can you be certain in advance? The truth is, you can't. It's impossible to predict exactly how things will unfold and whether everything will go as planned. Therefore, you need to base your decision on all the information you've gathered so far. Then, commit to that decision, especially when things get tough – and they likely will at some point.
We chose to give Spain a real chance, leaving Sweden for an extended period, perhaps permanently. We then aligned all our other decisions with this primary objective.
Informing Swedish Government Agencies About Your Move (Don't Forget This Step!)
Tax Office (Skatteverket)
If you're planning to move abroad for a year or more, it's important to notify the Swedish Tax Agency about your plans.
This step is also necessary if you initially planned a shorter stay abroad but later decide to extend it to a year or longer. It's crucial to inform the Swedish Tax Agency as soon as you make the decision to prolong your stay.
You'll need to print out a form, complete it, and mail it to the tax office.
Understanding Limited or Unlimited Tax Liability in Sweden
It's crucial to understand this: if you move abroad but your family remains in Sweden, or if you return for visits exceeding six months, or if you still own property, a company, or maintain any other economic ties in Sweden, you are still obligated to pay income taxes there. You can read more about this here.
Therefore, if you're planning to move abroad for more than a year and wish to avoid paying income taxes in both countries, it's advisable to close your company, sell any property, and relocate with your family. Also, ensure you inform the tax office about these changes in a timely manner.
Notifying Social Services (Försäkringskassan)
When relocating abroad, it's also necessary to inform the social services. You can find detailed information and the required forms on this link. Ensure that all underage children are included in this form. In such cases, both parents must sign the document, scan it, and submit it via the web portal of social services.
Signing Up for Kivra
Kivra is a digital mailbox service widely used by various government agencies in Sweden to send official correspondence. Before you move, it's important to set up a Kivra account. Ensure that you enable it to receive mail from different sources. By doing this, you can be confident that you won't miss any important mail, especially those pertaining to government services or official matters. This digital solution will be particularly useful when you're living abroad, keeping you connected with essential communications from Sweden.
Selling a House
The beginning of 2023 was not an ideal time to sell property. The Swedish housing market was experiencing a downturn, with prices falling. It seemed likely that prices would continue to drop, so we knew acting quickly was crucial for success.
Here are a few practical tips for a fast and successful property sale:
Find a good real estate agent using a service called Hittamäklare. After completing their form, you'll be presented with three agents who operate in your area. It's important to meet each of them in person before making your choice. You want to ensure you're hiring the right person for the job.
Your property will likely be advertised on “Hemnet”. If so, consider using their “Raketen” service. We opted for the best and most expensive option, but it proved worthwhile. It resulted in numerous viewings, and we were able to close the deal within a month.
When preparing for the photoshoot, remove any unnecessary furniture and clutter. The goal is to showcase your property as spacious and well-lit as possible.
If possible, schedule the photoshoot and any property viewings for a bright, sunny day. This will help in showcasing your property in the best light, making it more appealing to potential buyers.
Deciding What to Keep or Discard
When you've lived in one place for over five years with a family, it's likely you've accumulated a mix of valuable items and things that aren't as necessary. We often don't realise how much we've bought that we don't really need until it's time to move.
Our research into cargo transport costs revealed that it wasn't cost-effective to take our furniture with us, especially since most of it was from IKEA and the transport costs exceeded the furniture's value.
In the end, we chose to keep only the most valuable items: technical equipment, books, personal mementos, and clothes. Even after narrowing down our possessions to these categories, we still ended up with over 50 large cardboard boxes to transport! So, never underestimate the amount of stuff you have. You only truly realise it when you're preparing to move.
Selling and Giving Away Excess Items
For selling unwanted items, turn to “Blocket,” Sweden's most popular online marketplace. You can buy and sell almost anything there. Here are some valuable tips from my experience using Blocket:
Quick Sales: You can typically sell items quickly for about 30-40% of their original price, often on the same day or within a few days. If you aim for a higher return, be prepared for a longer wait. Some items are worth the patience, provided you have the time.
Quality Photos: Include multiple photos of the item in each ad. Take these photos yourself to demonstrate the item's good condition, and avoid using stock images from the internet.
Price Comparison: If possible, include a link in your ad showing the price of a new version of the item. This helps potential buyers see the value of the deal, especially if you're offering a significant discount.
For items you can't sell or choose to give away, use the service “Bortskankes.” This platform is excellent for disposing of things you no longer need or want. Simply post an ad with a photo stating that the item is free, and people will quickly come to pick it up. Many of them might be looking to make a small profit, but that's perfectly fine.
Renting a Storage in Stockholm
After selling and giving away most of our belongings, we still had quite a bit left and needed temporary storage. Stockholm offers a variety of storage provider companies, so it's important to choose one that's conveniently located near your residence. You'll likely make numerous trips to the storage unit, so a close location is preferable to avoid long travels.
Be cautious with the pricing structures of different storage providers. At first glance, their rates may appear similar, and some might seem quite affordable. However, when you proceed to book and pay online, you might encounter unexpected costs towards the end of the process. Some providers tack on substantial insurance fees, revealing that the initially advertised low price is significantly higher in reality.
We opted for a “Green storage” company and I highly recommend it. Their pricing was transparent right from the start, with no hidden fees, and the rates were reasonable. They offer a mobile app that doubles as a key to the facility. The entire process was conveniently online: from booking the storage unit, accessing it using the app, to eventually cancelling the storage.
Hiring a Cargo Transfer Company
Initially, we considered hiring a truck company to transport our belongings to Spain, thinking it would be a logical and cost-effective option. However, after some research and receiving several expensive quotes, we were fortunate to have a friend recommend an alternative solution: a company specialising in air cargo transfer. Surprisingly, air transport turned out to be more affordable.
The company we chose, “Travel Cargo,” was exceptional, and I highly recommend them. Their customer service and support throughout the entire transport process were outstanding. While their prices may vary over time, in 2023, the cost was approximately 50 SEK/kg of cargo. It's important to note that there are restrictions on what you can ship: flammable materials and items containing batteries are not permitted.
Closing a Small Business (“Aktiebolag”)
If you own a business, such as a limited company (Aktiebolag), it's often wise to close it before moving abroad, especially for tax reasons. As previously mentioned, maintaining any economic ties with Sweden, like owning a business there, can still render you liable for Swedish taxes even after relocating.
The standard process for winding down a limited company in Sweden takes about 9 months. However, there are companies that offer a "fast liquidation" or "snabb avveckling" service. This option provides a quick, secure, and straightforward process. You receive immediate payment, and the service company manages the liquidation on your behalf, sparing you from the administrative tasks during the settlement period.
We opted for the services of “Bolagspartner” and I highly recommend them. The cost for closing down a company was around 11,000 SEK, and the entire process was completed within 10 working days.
During the entire process, we received exceptional support from our accountants at “Resolut Ekonomi AB.” I strongly recommend them if you are in search of top-notch accounting services. Their expertise and assistance were invaluable to us, making the financial aspects of our transition much smoother.
Cancelling Car Leasing in Sweden
In Sweden, a popular way to acquire a car is through “privatleasing.” This option doesn't require a deposit or a large upfront payment. Instead, you need regular employment and the ability to present your last three payslips. For about 3500 SEK/month, you get a brand-new car, including insurance and regular servicing, which is quite a reasonable deal.
However, like any decision, there are trade-offs. In this case, your monthly leasing fee is tied to the central bank's interest rate. If the rate increases, so does your monthly payment. Privatleasing is an excellent choice during periods of low interest rates, but it can be less advantageous when rates rise.
If you're in a situation where you have a car leasing contract and plan to move abroad, you may encounter unexpected costs. Terminating the contract early and returning the car to the dealership typically requires paying 40% of the remaining contract value.
One way out of this situation is to find someone willing to take over the contract (“privatleasing överlåtelse”). This could be a colleague, a friend, or a relative. If you can't find someone in your immediate circle, your next option is to use online services. I found a few for this purpose: Blocket, Releaso, and Lease Matching. Blocket probably offers the best chances, but the other services are worth trying too.
Finding someone to take over the leasing contract can take a while, so make sure to start the process as soon as possible.
Managing Your Bank Account When Leaving Sweden
Keeping Your Bank Account
You are permitted to maintain your Swedish bank account after leaving the country. It's advisable to schedule an appointment at your bank branch before moving abroad. The bank staff will assist you with all the necessary details and ensure that your banking needs are taken care of.
Credit Cards
It's likely you'll want to keep your Swedish credit or debit card for some time, at least until you obtain a new one in your new country of residence. Before moving, check the expiration date of your card. If it's nearing expiry, order a replacement to avoid any inconvenience.
Bank ID
Retaining your Bank ID is crucial. You will need it to access your bank account and utilise various government services, such as tax reporting, even after you move. If you plan to change your mobile phone soon, it's best to do so before relocating. Ensure that you transfer your Bank ID to your new phone to maintain uninterrupted access to your digital banking and services.
Updating Your Address with the Bank
When you notify the Swedish Tax Agency (Skatteverket) about your move, your address in the bank's records will be automatically updated. Be vigilant for communication from your bank, which you'll likely receive through your online banking application. This message will request additional information about your new residence and other relevant details.
Banks typically require a response to this request within 10 working days. It's important to address this promptly because failing to respond in time can result in your bank account becoming inaccessible. Therefore, keep an eye on your online banking notifications and respond swiftly to ensure uninterrupted banking services.
Cancelling Utilities and Services in Sweden
Mobile Phone Contracts
It's advisable to keep your Swedish phone number active for a while after moving, especially for banking purposes and using Bank ID. Opt for a more affordable contract to maintain your number, and cancel any unnecessary contracts.
Electricity Contract
Remember to notify your grid provider, such as “Fortum” or any other company you use. Also, ensure you contact your electricity supplier to cancel your contract.
Insurance Contract
You won't need your house or apartment insurance once you move, so make sure to call your insurance provider and cancel this contract.
Dentist Appointments
If you have regular dental check-ups, you might have future appointments already scheduled. Failing to cancel these in advance could result in being charged for the appointment, even if you don't attend. Therefore, contact your dentist to inform them of your move and cancel any upcoming appointments.
Conclusion
This has been a lengthy guide, but I hope it proves to be helpful and valuable for anyone planning a similar move. The journey of relocating, especially internationally, involves many steps and considerations. By sharing my experiences and insights, I aim to make your transition smoother and more informed. Best of luck with your move!
Thank you for taking the time to read through to the end. Your continued interest and support are greatly appreciated.
Let me know in the comments if you want to hear more about any specific details.