In Sweden, taxes are almost always withheld at the time of payment. Your employer is obliged to deduct tax from your salary before you are paid. Income tax and wealth tax are direct taxes and are paid both to the state and the local municipality.
Remember, if you are on a scholarship and are not paying tax, you will not be eligible for healthcare and other benefits.
Filing tax returns is quite simple, and can be done electronically. Skatteverket, the Swedish Tax Authority can answer all your questions regarding the tax system in Sweden. Download a comprehensive brochure about Income tax and self assessment.
Tax relief for foreign key personnel
Tax relief may apply to foreign experts, executives, scientists, researchers and others whose skills are difficult to find in Sweden. Income taxes are based on only 75 percent of income. A number of costs such as moving costs, children's schooling, home travel, etc. are tax exempt. If tax relief is granted, it will be made for only three years. The employer must be Swedish company (Swedish or foreign owned). Swedish citizens cannot be granted tax relief. The main feature of Sweden's tax relief legislation will provide a 25 percent reduction of taxable income of a foreign key person. This means that if the relief is granted, a key foreign individual's income tax will be based on only 75 percent of his or her income.
Application for tax relief must be submitted by the employer or foreign person within three months of the start of employment. Applications are submitted to Forskarskattenämnden and download the application form. Always count your budget for your stay in Sweden that you may not be granted this relief as statistics on Forskarskattenämnden's home-page (headings only available in Swedish) applications are rejected.