Sweden Tax Laws and Regulations

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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.

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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 TypePercentages
Residents’ Income Tax:
Municipal (average)
Up to SEK 523,200 (€51,081, US$57,807)32.0%
National
Over SEK 523,200 an additional20.0%
Non-resident Income Tax25.0%
Social Insurance Taxes:
Employers contribute31.42%
Employees contribute to state pension fund7.0%
(Deductible from tax liability)
Corporate Income Tax (CIT):
Standard rate20.6%
Withholding Tax:
Depends on varying rates according to tax treaties
Consumption Taxes:
Value Added Tax standard rate25.0%
Reduced rates of 12% and 6% for various categories
Capital Gains Tax:
Flat rate30.0%

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 TypePercentages
Residents’ Income Tax:
Municipal (average)
Up to SEK 523,200 (€51,081, US$57,807)32.0%
National
Over SEK 523,200 an additional20.0%
Non-resident Income Tax25.0%
Employee Social Insurance Payment:
State Pension contribution7.0%
(Deductible from tax liability)