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 before 2 May. Final tax 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, preceeding the following income year.
Swedish tax on employment income can be paid in one of the following ways - Pay As You Earn (PAYE) withholding tax on income operated by the employer; self operated PAYE; or 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 - 2008
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 328,800 state tax is added.
|
Taxable income (SEK) |
Municipal tax (%) |
State tax (%) |
|---|---|---|
|
1-328,800 |
28-35% |
- |
|
328,801- 495,000 |
28-35% |
20% |
|
495,001 - - |
28-35% |
25% |
|
Employment income: |
SEK |
|---|---|
| Salary | 500,000 |
| Car benefit | 48,500 |
| Total earned income | 548,500 |
| Basic allowance | -12,100 |
| Taxable income: | 536,400 |
|
Capital income |
|
| Dividend | 1 000 |
| Bank interest | 2 500 |
| Interest on loan - | 15 000 |
| Total capital income | - 11 500 |
|
Income tax thereon: |
|
| Municipal income tax 536,400*31% | 166,284 |
| State tax: (495,100-328,800)*20% | 33,260 |
| (536,400-495,101)*25% | 10,324 |
| Capital tax reduction: (-11 500*30%) | -3,450 |
| General pension contribution | 27,100 |
| Tax reduction on general pension contribution | -27,100 |
| Total tax | 206,518 |
Information about Sweden:
Last updated 8 May 2008
This information has been provided by Grant Thornton Sweden, a member firm within Grant Thornton International Ltd, and is for informational purposes only. Neither Grant Thornton Sweden nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.
Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by the member firms.
Disclaimer
Contact us
For further information on expatriate tax services in Sweden, please contact Aino Askegård Andrésen.