Sweden - Tax Guide for Freelance Contractors

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 they are present in Sweden for a period of more than 6 months.

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 2012 including:

• basic allowance between approx. SEK 18'700 and SEK 34'000 depending on the amount of income,
• work related travelling costs,
• premiums paid for private pension insurance and alimony,
• expenses incurred due to double accommodation andhome travel during temporary assignments away from ordinary place of work for up to two years for single individuals and five years for married couples. 

Individual income tax rates for 2012:

Individual income tax in Sweden is comprised of two major parts: A municipal tax rate between 28.9% and 34.2% and a national tax rate between 20% and 25%. For 2012, the national tax rate applies only to individuals earning more than SEK 401'100 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 401'100,
• 50.00% from SEK 401'100 up to SEK 574'300,
• 55.00% over SEK 574'300,

There is a 25% expatriate flat tax rate for non-residents. 

Filing date:

In May following the assessment year.