Taxation

Working in Europe | Taxation/salaries | Sweden

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. There are some exceptions to the regular tax system, e.g. tax relief for foreign key personnel and a special income tax for non-residents (SINK) if you stay for less than six months.

Note, if you come to Sweden on a scholarship that is tax free, you will not be entitled to the same benefits from the Swedish Social Insurance Office that the tax-payers are. This means that you need to ensure you have a separate cover. Read more at Social security.

Read more about taxation in Sweden at Skatteverket.se

 

 

If you reside in another country, and come to work in Sweden for less than six months, your employment income from work in Sweden will normally be taxed in Sweden. In most cases you will need to file an application for taxation in accordance with the Special Income Tax for Non-Residents Act (SINK). However, this depends on:

  • the duration of your stay in Sweden, and
  • if you work for a Swedish employer or a foreign employer who is established in Sweden

If you are to be taxed in accordance with SINK, you are also required to pay tax on the reimbursement of expenses you have received.

If you stay and work in Sweden for a continuous period of at least six months you must register for income taxation. If your stay is more than one year you should be registered in the Swedish Population Register and you will then receive a personal number.

When staying for at least six months, you are considered as resident in Sweden for tax purposes, and are liable for taxation in Sweden on all of your worldwide income. You must also file a Swedish income tax return. Your tax return must be filed no later than May 2nd of the year after the fiscal year.

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. The reduced tax applies to all salaries and perks, such as employers' contributions to housing and living costs. It will apply to the first three years of the temporary stay in Sweden. However, foreign key personnel may reside in Sweden for up to five years. The employer must be a registered company in Sweden (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.

The application for tax relief must be submitted by the employer or the foreign person within three months of the start of employment. Applications are submitted to Forskarskattenämnden by using this application form.

Read more at www.forskarskattenamnden.se.