Sweden Tax Laws and Regulations
Swedish Tax Laws
Dealing with tax, payroll, and employment regulations for your staff from overseas is always a tricky process and poses complications that demand expert guidance. Sweden is no exception.
With over 20 years’ experience in the front rank of international payroll providers, Bradford Jacobs ensures our clients comply with every level of tax and employment law across the globe. Our ‘expertise’ is vital for foreign companies expanding into Sweden.
By using our PEO service, we will take care of the complicated legwork so that you can focus on your business goals. Bradford Jacobs’ dedicated specialists remove the burdens of worrying about these complications while you focus on building your business in a new territory
Overview of Taxes in Sweden
* Although a member of the European Union, Sweden is not in the European Monetary Union ‘Eurozone’ and has the Krona, SEK, as its currency.
Taxable income in SEK, Euros (€) and US Dollars (US$)
| Tax Type | Percentages |
|---|---|
| Residents’ Income Tax: | |
| Municipal (average) | |
| Up to SEK 523,200 (€51,081, US$57,807) | 32.0% |
| National | |
| Over SEK 523,200 an additional | 20.0% |
| Non-resident Income Tax | 25.0% |
| Social Insurance Taxes: | |
| Employers contribute | 31.42% |
| Employees contribute to state pension fund | 7.0% |
| (Deductible from tax liability) | |
| Corporate Income Tax (CIT): | |
| Standard rate | 20.6% |
| Withholding Tax: | |
| Depends on varying rates according to tax treaties | |
| Consumption Taxes: | |
| Value Added Tax standard rate | 25.0% |
| Reduced rates of 12% and 6% for various categories | |
| Capital Gains Tax: | |
| Flat rate | 30.0% |
Sweden Individual Tax – Single, Married
Tax liability is based on residency rules and individuals can be either resident or a non-resident for tax purposes. Residency hinges on being permanently domiciled in Sweden, being resident for more than six months and whether a former resident tax liability is still active on return to the country. Residents are taxed on worldwide income, non-residents on income earned in Sweden. Spouses are taxed independently and file separate returns.
* Although a member of the European Union, Sweden is not in the European Monetary Union ‘Eurozone’ and has the krona, SEK, as its currency.
Taxable income in SEK, Euros (€) and US Dollars (US$)
| Tax Type | Percentages |
|---|---|
| Residents’ Income Tax: | |
| Municipal (average) | |
| Up to SEK 523,200 (€51,081, US$57,807) | 32.0% |
| National | |
| Over SEK 523,200 an additional | 20.0% |
| Non-resident Income Tax | 25.0% |
| Employee Social Insurance Payment: | |
| State Pension contribution | 7.0% |
| (Deductible from tax liability) |