Sweden


Introduction

Uniglo Financial can provide a comprehensive range of Umbrella solutions in Sweden. The individual is treated as an employee of our local partnering company.

It is important to use experienced local providers for Immigration, Payroll and Taxation to be sure of compliance and reliability. We will be able to assist you with Work Visas for Freelancers to ensure that you comply with local regulations and maximize your net income.

Immigration

Nationals of the EU/EEA Member States and Switzerland are able to work without restriction in Sweden, including citizens of the two most recent members Bulgaria andRomania.

 

For all other nationalities, a work permit must be acquired. This is possible if there is a labour shortage in the sector concerned. Since 15 December 2008 new rules apply which make it easier for Swedish employers to obtain work permits for highly skilled workers as well as for low skilled workers.

If you will be in Sweden for less than three months, you will not require a residence permit. You may, however, require an entry visa. Information about which citizens are required to have entry visas, and further information on visas, is found on the page ‘Visa for visiting Sweden’.

Requirements for a work permit:

  • Application for a work and residence permit.
  • You must have a written offer of work in Sweden, made out on a special form (AMS PF 101704) which your employer can obtain from the employment office, it is also available here to the right.
    Your employer must complete it and send it to you so that you can enclose it with your application.
  • Your employer must guarantee that you will be paid a minimum of SEK 13,000 per month before tax.
  • Some form of accommodation must have been arranged for you in Sweden.

Tax residency

If you are present in Sweden for more than 6 months.

Income Tax bands

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,

An employee that will be working in Sweden for 180 days or less can apply for SINK tax, which is a 25% flat tax. The employee does not file a tax return and cannot apply for any type of tax refund. An employee that is paying SINK tax is subject to the EU/EEA and other bilateral tax treaties that are designed to avoid double taxation – the employee reports the SINK tax paid and receives a tax credit or exemption for the SINK taxes paid. Two important considerations: First, the Swedish government must approve eligibility for SINK tax and can refuse to grant this approval under certain circumstances (some examples where this can occur is the person is from a country that does not have a bilateral tax treaty with Sweden, the country is considered a tax haven and that the employee is considered to have ties to Sweden). Second, the employee must apply for SINK within the fist thirty days that they arrive in Sweden.

Social security

Employers are liable to pay social security contributions relating to salaries and
benefits paid to their employees. The social security fees levied for national social
security is 31.42%. Employers also have to pay social security fees at a rate of
24.26% on pension costs. Employees have to pay 7.00%  for pension insurance premium.

How much can I take home?

Please contact our Sweden specialist who will discuss your personal circumstances with you and help you to get  a work permit for Sweden and  minimise your tax and social security liabilities, within the bounds of Swedish legislation.