Sweden - Tax Guide for Freelance Contractors
Welcome to our guide to Swedish Taxation. You will find a wealth of information which will be useful if you plan to work in, or place consultants in, Sweden.
Our tax guides give a general overview of the actual taxation rates and rules at the time of writing. There are of course many ways to legally reduce tax or social security burdens in Sweden. Please contact us for more information or an actual breakdown of your situation, and to find out more about our range of payroll and contact management services in Sweden.
Any Questions?
Call Us Now
Monday-Friday 0900-1730 CET
+41 327 32 9700
..or use our online enquiry form
-
Swedish Income Tax
-
Swedish Social Security
-
Swedish Visas and Work Permits
-
Umbrella and Contract Management Services in Sweden
-
Download our Swedish Taxation factsheet
-
Contact our Swedish Taxation specialists
Tax residents in Sweden: are liable to pay national and municipal Swedish tax on their
worldwide income,
Non tax residents in Sweden: are liable to pay tax on income derived from work performed
in Sweden.
Individuals will be regarded as tax residents:
- if their stay in Sweden is for more than 183 days during any 12 month period, even if there is no intention of staying in Sweden permanently.
Married persons are taxed separately.
Taxable income includes:
- income from employment (deemed to form only one source), is taxed for Municipal tax up to the threshold and for National tax for the exceeding part.
- income from business (may include various sources of income), is taxed for Municipal tax up to the threshold and for National tax for the exceeding part.
- income from capital (deemed to form only one source) is taxed separately. No Municipal tax is levied.
Certain deductions are permissible for 2010 including:
- work allowance of ca. SEK 1’400 per month up to a maximum of SEK 1'752 for most employees (the amount depends on age, amount of employment income, amount of basic allowance and the applicable municipal tax rate),
- basic allowance between SEK 12’000 and SEK 33’000 depending on the amount of income,
- costs incurred for maintaining income are deductible against the same source of income,
- work related travelling costs,
- premiums paid for private pension insurance and alimony.
Individual income tax rates for 2010:
Individual income tax in Sweden is comprised of two major parts: A municipal tax rate between 30% and 35% and a national tax rate between 20% and 25%. In 2010 the national tax rate applies only to individuals earning more than SEK 372'100 per year. Assuming a municipal tax rate of 30% the combined tax burden is as follows:
- 30.00% from SEK 0.00 up to SEK 372'100,
- 50.00% from SEK 372'101 up to SEK 532'700,
- 55.00% over SEK 532'700,
- 25.00% flat tax rate for Non-Residents.
Filing date:
In May following the assessment year.