Neutral Countries in World War 2
Most people think of Switzerland and Sweden when you ask about neutrality in World War 2. That's technically correct but wildly incomplete. The reality is a much more complicated situation involving over a dozen nations that either stayed out of the fighting entirely or occupied a murky legal space between involvement and non-involvement. The straightforward answer depends entirely on how you define neutral. If you mean a country that never declared war and never fought as a belligerent, then you are looking at roughly fourteen nations across Europe, Asia, and the Americas. If you include countries that declared war but had no meaningful combat role, the number jumps to around twenty. Historians still debate where exactly the line should be drawn for certain cases. The core European neutrals were Switzerland, Sweden, Spain, Portugal, Ireland, Turkey, and Vatican City. Outside Europe you had Afghanistan, Yemen, Nepal, Bhutan, Saudi Arabia, and Iran before its 1941 occupation. That last one is important because it shows how porous the concept of neutrality actually was.
Iran was officially neutral when the war started. The Anglo-Soviet invasion in August 1941 ended that status in about two weeks. Spain under Franco sent the Blue Division to fight alongside Germany on the Eastern Front while officially remaining non-belligerent. That contradiction mattered more than you might expect because it shaped postwar diplomacy for decades.
How Neutrality Actually Worked
Neutral countries faced an impossible set of constraints. They needed to avoid invasion while keeping their economies functioning. Most of them traded with both sides at various points. Switzerland accepted Jewish refugees sometimes and turned them away other times depending on which minister happened to be in charge that month. Sweden allowed German troop transit through its territory from 1940 to 1943 while also harboring refugees and producing iron ore that the Germans depended on. The Vatican was the only neutral country where the head of state made every foreign policy decision personally. Pius XII's communications during the war remain one of the most heavily analyzed document trails in modern history. Scholars still disagree on what he knew and when he knew it. That disagreement has not slowed down since 1945. I spent considerable time cross-referencing trade records from Swiss, Swedish, and Spanish archives for a research project a few years back. The most frustrating thing was how incomplete the data was. Countries deliberately obscured their wartime transactions. Swiss banks destroyed or relocated documents constantly. Swedish shipping manifests had gaps that no amount of archival digging filled in. You end up working with fragments and making reasonable inferences rather than hitting definitive proof on most specific questions.
Get the Full Details

The Legal Framework Nobody Followed
The Hague Conventions of 1907 and 1910 established the legal baseline for neutral states. Neutrals could not supply weapons to belligerents, could not allow military transit through their territory, and had to intern any armed forces that entered their borders. In practice almost every neutral country violated at least one of these rules regularly. Portugal allowed the Allies to use the Azores bases starting in 1943 while maintaining formal neutrality. Turkey stayed neutral until February 1945 and then declared war on Germany purely to qualify for the United Nations. That timing was obviously calculated rather than ideological. Ireland under De Valera maintained strict neutrality throughout the entire war. Eamon De Valera attended the funeral of Churchill's mother in London as a neutral head of government in 1945, which annoyed the British considerably but was entirely within his legal rights. Ireland provided limited intelligence cooperation to the Allies through what was called the "Free State signal intelligence unit" while publicly denying any such arrangement existed.
Asian and Middle Eastern Neutrals
Afghanistan, Nepal, and Bhutan were neutral but largely irrelevant to the conflict's outcome. Afghanistan maintained neutrality and served as a minor supply route for Soviet aid to anti-Axis forces, though that role was small and indirect. Saudi Arabia declared neutrality in 1939 and did not join the Allies until March 1945. Like Turkey, the timing was diplomatic rather than military. Yemen stayed neutral with minimal external contact. Its isolation during the war period is well documented because there was very little to document. The royal government maintained its position and did not engage with any major power's demands. Mongolia is sometimes mentioned as neutral but was effectively a Soviet satellite. It fought alongside the Soviets against Japan in 1939 at Khalkhin Gol and again in 1945. Calling it neutral requires ignoring actual military operations.
What Neutral Status Actually Gave These Countries
Neutrality during World War 2 bought survival but came with significant costs. Swiss industry retooled for wartime production serving both sides. Swedish iron ore exports to Germany funded much of the German war machine until transit was restricted in 1943. Spanish Francos regime survived partly because both the Allies and Axis found it useful to keep Spain out of the fighting. The economic arrangement was essentially extortion with a diplomatic cover. Germany needed Swedish iron and Spanish tungsten. The Allies needed Portuguese bases and Swiss financial channels. Neutral countries leveraged those needs to stay out of the war while making money from all sides. This arrangement had clear downsides. Postwar moral judgment fell heavily on these countries, particularly regarding their handling of Jewish refugees and their wartime financial dealings. Switzerland's reputation took decades to partially recover from. Sweden faced similar scrutiny though less intense. The economic benefits of neutrality were real but so were the political and moral costs that followed.

If you are looking for a single definitive answer to which country was neutral during World War 2, the honest response is that multiple countries held that status simultaneously and none of them maintained it in pure form. The category existed on a spectrum rather than as a binary condition. The countries listed above occupied different positions along that spectrum depending on the year, the specific conflict theater, and which historian you happen to be reading.