Swedish Income Tax
Our tax guide for freelance contractors working in Sweden
Individuals staying in Sweden for more than 183 days during any 12 month period, even if there is no intention of staying in Sweden permanently, are regarded as tax resident and are taxed in Sweden on their worldwide income. Individuals staying in Sweden for less than 183 days are treated as non-resident taxpayers and are only taxed on income derived from work performed in Sweden.
Foreign experts performing an activity in Sweden requiring rare skills can benefit from an expatriate tax regime so long as the assignment does not exceed 3 years, the remuneration is borne by a Swedish entity, and the individual did not reside in Sweden during the 5 years prior to the application. Under this regime, 25% of the employee’s income as well as moving and schooling expenses and two annual trips home are exempted from Swedish tax and social security contributions during the first 3 years of the assignment in Sweden.
In Sweden, basic income tax applicable to residents is 0% up to SEK 316’700, 20% on income between SEK 316’700 and SEK 476’700 and 25% on income over SEK 476’700 after deduction of social security contributions. In addition, a municipal tax of approximately 31.6% of the taxable income is also due. A wealth tax is due when assets exceed SEK 1'500'000 for single persons or SEK 3’000’000 for taxpayers filing a joint tax return, however, foreign nationals temporarily residing in Sweden for a maximum period of 3 years are deemed not to be residents for net wealth tax purposes. Married couples are taxed separately.