Tax In Sweden

A Contractor's Guide to Taxes : 

One of the most consistently challenging aspects of contracting in Sweden is complying with the country’s tax system. As well as paying tax in Sweden, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income: 

If you’re working in Sweden under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Sweden for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Sweden, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Sweden through PAYE is left with the prospect doing everything themselves.

Do you know much about Swedish Tax Law? Does Sweden have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Sweden can range from 0 to 25 percent, excluding municipal tax, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator: 

If you are a contractor and want a calculation on your tax and net retention in Sweden, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax : 

Contractors in Sweden are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Swedish umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Swedish taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Swedish tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax: 

We work with numerous umbrella companies in Sweden, many of whom are experts in tax and immigration laws. If you have any questions about tax in Sweden, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Swedish work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Sweden but without the overhead of directly dealing with the Swedish tax authorities. Get in touch with us today for some reliable advice on tax in Sweden!

When Do You Need to Lodge Your Tax Return?: 
2nd May
Tax Filing Deadline : 
2nd May (with a possible extension until 31st May)
Can you file it online? : 
Yes
Currency: 
Swedish Krona (SEK)
Tax-free Threshold in: 
SEK455,200
Grossed Income: 
0-455,200
Tax Rate: 
0%
Grossed Income: 
455,300-662,200
Tax Rate: 
20%
Grossed Income: 
>663,300
Tax Rate: 
25%
How long does it take to set up: 
3 days
How much does it cost: 
SEK1,900 – SEK2,200
Is it easy? : 
Starting a Business Rank: 13/190 (Source: World Bank)
How to File Taxes in: 

Step 1: Register with the Swedish Tax Agency

Register with the Swedish Tax Agency by visiting your nearest Tax Agency office, which can be found here.

The tax agency will register you in the Swedish Population Register and issue you a personal identity number (personnumer).

Step 2: Obtain Your Income Tax Return Form

An income tax return form will be sent to you in April if you are registered with the Swedish Tax Agency, and liable for income tax. If you have not received a form by the 15th of April, order a new form online here, or contact the Swedish Tax Agency on +46 (0) 771 567 567 or here.

Step 3: Complete Your Income Tax Return Form

Complete your income tax return form, verify the pre-printed information, and make the necessary changes. This information can be submitted via the Swedish Tax Agency’s e-service (Inkomstdeklaration), via their app (Skattevert), by mail, by SMS, or by dialling 020-567 100.

It is advised that you consult a translator, as the e-service and app are in Swedish.

Notes: 

Tax Rates for Non-Residents: The above tax rates apply to tax residents. Non-residents are taxed at a flat rate of 20% (25% from January 2018). Non-residents working in Sweden for a Swedish or a foreign employer, with a permanent establishment in Sweden, are subject to a 20% tax rate (25% from January 2018). Non-residents working in Sweden for a non-Swedish employer, without a permanent establishment in Sweden, are not taxed in Sweden, provided that the individual does not spend more than 183 days in Sweden during a 12-month period.

Municipal Tax: Employment and business income is subject to municipal income tax at an average rate of 32%. Rates vary across municipalities.

Does the 183 day rule apply in: 

Yes

When do you become a tax resident in: 

You become a tax resident in Sweden when you:

  • You have your real home and dwelling in Sweden; or
  • You have stayed in Sweden for 6 months (183 days) or more, continuously; or
  • You have essential ties with Sweden and have previously been a resident in Sweden.

If you have been a Swedish citizen or a tax resident in Sweden for at least 10 years, you are considered a tax resident in Sweden for up to 5 years after your departure.

Am I taxed on my global income in: 

Residents are taxed on their global income. Non-residents are taxed on their Sweden-sourced income only.

You are not taxed on your global income in Sweden if you have been assigned to work abroad for at least 6 months, your income is taxed in the country of employment, and you do not spend more than (i) 6 days per month or (ii) 72 days per 12-months in Sweden.

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