Abstract Local authorities and local self-government are keystones of democracy. This paper aims at explaining the differences between the German, particularly in Schleswig-Holstein, and the Swedish municipality systems. This has been done through a comparative study and information interviews with the mayor and the president of the cultural and economical committee of the city of Kellinghusen in Germany and the mayor of Herrljunga kommun in Sweden. Both the city of Kellinghusen and Herrljunga kommun are cases that have been studied in this paper in order to make an accurate comparison.   The analysis indicates that it is difficult to make a comparison between the two countries since there is not just one system in Germany, but several. Nevertheless, there are some similarities that can be found. Local self-government is part of the constitution of both countries and the local self-governments are responsible for welfare services such as schools, libraries etc. There are also certain similarities when it comes to the organization structure. Both countries have a town councillor, elected by the people, and an administration.   Finally, the study shows that even though Sweden is a unitary state the municipality has the same authority as the municipalities in Germany, which is a federal state.