Gothenburg – Little London Gbg New Amsterdam
The city Gothenburg spans a total area of 447.76 km2 (172.88 sq mi), making it the second-largest area in Sweden after the capital city of Stockholm. The urban area region spans a total area of 203.67 km2 (78.64 sq mi). The metro region spans a total area of 3,694.86 km2 (1,426.59 sq mi). It has a population of 579,281, with a density of population of 1,300/km2 (3,400/sq mi). In the urban region, it has a population of 600 473. In the metro region (the greater metropolitan region), it has a population of 1,025,355 people (est. 2019). It is located on the south-western coast of Sweden, on the mouth of the River Göta Älv, next to the Nordic Sea, allowing it to have a significant international shipping route.
The municipality of Gothenburg is divided into 21 separate districts, each with an individual committee to oversee the running of local services within each area, such as schooling, leisure, and social services. Sweden is a member of the European Union (EU), and as the United Kingdom, it has chosen to keep its currency, which is the Swedish Krona (SEK), instead of adopting the euro (EUR).
Economy of Gothenburg
Gothenburg port plays a significant part in the city’s economy: it exports a large percentage of Sweden’s goods and is the biggest port in Scandinavia. Famous exports include machinery, cars, paper, wood, and steel. Major exports partners include Germany, Norway, Denmark, the UK, and the US.
The manufacturing industry is also central to the city’s wealth, particularly the automobile industry: Volvo Cars is the largest employer in Gothenburg and has a factory in the city. The financial sector is growing in Gothenburg, and several business parks and clusters are home to insurance and information technology-based companies. Other large employers located within the city include SKF, Ericsson, and Astra Zeneca. Gothenburg has a relatively high GDP per Capita (PPP) of $48,448.
Infrastructure of Gothenburg
Gothenburg is well connected with numerous modern transportation options running throughout the city. It is served by Göteborg-Landvetter Airport. Gothenburg-Langvetter Airport (GOT), is located 11km southeast of the city center and offers frequent flights to many European cities. It also has a separate cargo terminal, where three airlines transport freight to five worldwide destinations: Dubai, Osaka, New York, Seoul, and Krasnoyarsk.
The city has its port in Gothenburg harbor, the largest and busiest port in Sweden, and exports most of the country’s cargo, with routes to Europe, North America, and East Asia. It also offers several passenger routes, including DFD Tor Lines operating services between several English ports and Gothenburg.
Gothenburg has no subway system due to the soft ground it is located on, which would be too difficult and expensive to build in. However, the lack of metro is made up for by the extensive tram, bus, and train system, which allows passengers to freely travel around the city center and cities in neighboring countries such as Norway and Finland.
Gothenburg is a highly multicultural city, with over a quarter of the population holding a foreign passport. The two largest immigrant groups are from Finland and Iran, who make up 10% and 9% of the total population, respectively. Gothenburg has several segregated communities, mainly consisting of Middle Eastern nationalities. The remaining immigrant population is predominantly of Eastern and Southern European descent.
The official language for the city is Swedish, but due to the large immigrant population, Sami, Finnish, Arabic, and other European languages are present. Many Swedish nationals are multi-lingual, speaking English and several other languages, as the educational system emphasizes learning foreign languages.
Gothenburg has a sound education system with numerous primary and secondary schools, most state-funded. There are also four Folk High Schools, which provide higher education learning but are not affiliated with universities, and do not offer internationally accredited degree programs. The University of Gothenburg is the largest and oldest higher education institute in the city. It was founded in 1891 and had eight faculties. More than 38,000 students are enrolled in its study programs (est. 2009) —several other notable specialist universities such as the Chalmers University of Technology, with over 11,000 enrolled students (est. 2010) and the Gothenburg School of Economics. The robust education system helps create a highly skilled workforce, with a total national literacy rate of 99%.
Business Costs in Gothenburg
Office rental costs in the area are the same as office rental prices in Dublin, Athens, and Madrid. Rental costs are lower than in the capital city of Stockholm, where the average rental cost per square foot per annum stands at $68.29.
Utility costs in the city are relatively low, as the Swedish government stops water and electricity companies from over-inflating prices. Sewage disposal is the responsibility of each municipality, and the state heavily subsidizes it.
Sweden has a fixed competitive corporate tax rate of 20.6%.
Individual tax is levied on both a federal and municipal level, with each municipality controlling its tax rates. Personal taxes work on a progressive scale, but for high-income earners, they are some of the highest rates in the world. Any individual who earns more than Kr538,800 ($74,058) may be required to pay up to 59.17% tax on all income, depending on what municipality they reside in. VAT rates in Sweden are also amongst the highest in Europe, with a fixed 25% for most general items, a discounted rate of 12% for some foodstuffs, and 6% for newspapers and books.
You can find more about the Sweden Tax Rates here: Sweden.se
Wages are higher in Sweden than the European average, with the highest salaries being found in and around the capital city of Stockholm. Although the state sets no minimum wage, many laws in place protect employees and their rights. The average wage for December 2021 reached 183 SEK/Hour (around $14/h). The maximum rate was 184 SEK/Hour and minimum 134 SEK/Hour. On average, the minimum (un-official) wage in Sweden is over $3000/month.