How to Retire in Sweden: Costs, Visas and More

Sweden is one of the world’s most desirable retirement destinations, offering a high quality of life, scenic beauty and rich cultural experiences. From its historic, walkable cities to its coastal archipelagos, dense forests and renowned cuisine — including smoked herring and traditional meatballs — Sweden appeals to a wide range of retirees. If you’re considering retiring in this Scandinavian country of just over 10 million people, it’s important to understand the practical details, including living costs, healthcare quality and residency requirements. A financial advisor can also help you build a solid plan to retire in Sweden or elsewhere abroad with confidence.

Cost of Living and Housing in Sweden

Sweden is an expensive country, though its cost of living comes in slightly below the U.S. Sweden’s cost of living is roughly 20% lower than the U.S., according to the most recent data from Numbeo. That higher cost of living, however, does not come from more costly housing expenses. Rather it comes from more expensive groceries and transportation, including more expensive gasoline.

Your housing dollars can go farther in retirement in Sweden than in the U.S. For example, rent costs are, on average, 49% lower than in the U.S. If you rent an apartment in the U.S., a one-bedroom unit in the city center will likely cost about $1,740 per month. The same apartment in Sweden would cost about $920 per month. These prices can vary greatly depending on the city you choose to live in within either country.

Getting a Visa in Sweden

Americans do not need a tourist visa to visit Sweden. However, if you plan to retire in Sweden, you’ll need a Schengen visa, which you must apply for before you move to Sweden. You can apply by visiting a Swedish consulate or embassy in the U.S. You’ll need to bring a valid passport, financial disclosures and a passport photo. You’ll also go through a residence permit interview in Washington, D.C.

The processing time for a Swedish residence visa varies, so you may want to wait until your residence permit is approved before purchasing a one-way ticket.

Healthcare in Sweden

Sweden is known for having some of the healthiest seniors in the world, thanks in part to a lifestyle that promotes year-round outdoor activity. Regardless of age, Swedes are encouraged to walk, bike, ski and skate, helping to support long-term health and mobility.

Another key factor is Sweden’s highly regarded healthcare system, which emphasizes both treatment and prevention. Funded by income taxes, the public healthcare system is accessible to all residents and is considered one of the best globally. Sweden invests roughly 10% of its GDP in healthcare, and institutions like the Karolinska Institute — famous for selecting the Nobel Prize winner in Physiology or Medicine — are internationally respected.

Private health insurance is uncommon in Sweden due to the strength and accessibility of public care. Expats who wish to use the public healthcare system must apply for a personal identification number (personnummer) at their local tax office. Once issued, they’ll receive a healthcare card granting access to services throughout the country.

Taxes in Sweden

Taxes in Sweden are notoriously high, though the burden of these taxes falls primarily on consumption rather than corporate earnings. That has fostered the rise of global giants like Ikea, Volvo, Electrolux and Ericsson.

What expats pay in taxes varies depending on a person’s stay in the country. For example, anyone staying six months per year or longer will pay the highest taxes, and anyone who is a resident but chooses to stay for less than six months may pay less. There is also an opportunity for expatriate tax relief that reduces salary tax.

However, if you are not working during your Swedish retirement, then these laws may not apply to you. Sweden taxes foreign-earned income if you are considered a resident. This includes your American pension and capital gains. If you want to avoid paying taxes in the U.S. and being taxed again in Sweden, it’s a good idea to work with a tax professional and a financial advisor. They can help you navigate the complicated tax codes such as the U.S.-Sweden Tax Treaty, which helps determine how both countries will treat income.

Safety in Sweden

In general, Sweden is a very safe country. There are minimal personal crimes and very few personal safety concerns in this country. In fact, according to the U.S. Department of State’s Overseas Security Advisory Council, general crime rates in Sweden are below the U.S. national average. However, the organization also cautions that just because the crime rates are low, it doesn’t mean the foreign travelers are immune to crime. The majority of crime involves the theft of personal property from vehicles, homes and public areas.

But, if you find yourself in an unsafe situation, emergency medical care is available throughout the country and is both affordable and high quality. There are several rural areas in Sweden where one might find themselves far from the nearest clinic or hospital, and therefore should take extra precautions when traveling.

Bottom Line

An image of a Swedish town, with all the buildings brightly painted.

Sweden is known for its healthy and active seniors as well as its beautiful landscapes and coastal areas. It is generally very safe, has excellent healthcare and is affordable for those living on a fixed income. If you are considering a move to this northern European country, be sure to discuss your plan with a financial advisor. They can help you create a financial plan that includes an international move.

Tips on Retiring

Retiring abroad can seem like a difficult task. Still, a professional like a financial advisor can help you understand what you need to do to take your retirement income abroad and navigate the tax implications. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
As mentioned above, Sweden and the U.S. have tax codes that can help make your retirement more affordable. You may be able to live there on your Social Security retirement benefit. You can estimate your benefit amount with a Social Security calculator.

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