Estocolmo Capital Estocolmo Estocolmo is Sweden’s capital and largest city, spread over fourteen islands between lake Mälaren and the Baltic. The center includes the old town Gamla Stan, the Palácio Real and the Nobel City Hall; the island of Djurgården houses the Vasa Museum, Skansen and the Nordic Museum; Södermalm has viewpoints and Fotografiska. Commuter boats go to the Palácio de Drottningholm and the archipelago, and the metro is an underground art gallery.