Expatriate tax ebook - Sweden

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
An individual from a non EU/EEA country has to apply and be granted residency and a work permit at the Swedish Embassy or consulate general in his/her home country before arriving in Sweden. 

Registration for tax and residence purposes
An individual should register with the local tax office, for population purposes, if the assignment is expected to last for more than one year. If the expected stay is less than one year but continuous for more than six months an individual should register with the local tax office, i.e. if the individual will be tax resident in Sweden.

Employment visas
Nordic citizens are not required to apply for a work permit or a residence permit. An EU/EEA citizen arriving in Sweden with the intention to stay for more than three months has to apply for a residence card at the Swedish Migration Board. A work permit is, however, not required for EU/EEA citizens.

Tax year
The tax year is the calendar year, 1 January to 31 December.

Tax returns and compliance
The taxpayer is liable to submit a tax return by 2 May the year after the income year. Final tax assessment statements will be sent out between 15 August and 15 December.

Employees, employed by foreign employers without permanent establishment in Sweden, must file a preliminary tax return at the beginning of employment. A new preliminary tax return must be filed before 1 December each year, preceding the following income year.

Swedish tax on employment income can be paid in one of the following ways - Pay As You Earn (PAYE) withholding preliminary tax on income operated by the employer; or self operated PAYE in case of a foreign employer without a permanent establishment in Sweden; the individual pays an estimated amount of taxes by direct collecting either following a self calculated assessment or an exact amount following the Swedish Tax Agency's tax bill (subject to interest charges).

Income tax rates - 2011
Income tax in Sweden consists of municipal and state tax. Municipal tax varies by municipality from approximately 28% to 35%. On taxable income exceeding SEK 383,000 state tax is added.

Sample income tax calculation

Information about Sweden: