How do people pay taxes in Sweden?

If you have registered in the Population Register and want to start working in Sweden, you must contact the Swedish Tax Agency (Skatteverket) for a tax card (A-skattsedel). With a tax card, your employer can deduct tax from your salary and pay employer contributions (arbetsgivaravgifter).

How do I pay my taxes at Skatteverket?

Sweden offers its citizens some of the finest social programs: universal health insurance, unlimited sick days, subsidized childcare, and free university tuition.

However, these luxuries do not come without a cost, and Sweden’s tax rates are among the highest in the world. In addition to Swedish taxes, Americans living abroad cannot forget their US expatriate income tax return obligation or other reporting requirements, like FBAR.

When contemplating relocating to Sweden, it’s essential to consider the impact it may have on your income tax return as a US expat, in addition to understanding the Swedish tax rates and deadlines. In other words, familiarizing yourself with the Swedish taxes for US expats is crucial before deciding to move.

Primary Tax Form for Residents: Swedish Tax Return (inkomstdeklaration)
Tax Year: January 1st to December 31st.
Tax Deadline: May 2nd (for online filing) or August 2nd (for paper filing)
Currency: Swedish krona (SEK)
Population: Approximately 10.4 million
Number of US Expats: Approximately 18,000
Capital City: Stockholm
Primary Language: Swedish
Tax Treaty: Yes
Totalization Agreement: Yes

Sweden is renowned for its comprehensive social programs. However, to support those social programs, Sweden also has some of the highest tax rates in the world. Swedish tax law is also known for its complexity, often making it difficult for expats to keep track of their obligations.

To help clear things up, here’s an overview of how Sweden’s tax law applies to US expats.

What happens if you don't pay the tax in Sweden?

Sweden offers its citizens some of the finest social programs: universal health insurance, unlimited sick days, subsidized childcare, and free university tuition.

Primary Tax Form for Residents: Swedish Tax Return (inkomstdeklaration)
Tax Year: January 1st to December 31st.
Tax Deadline: May 2nd (for online filing) or August 2nd (for paper filing)
Currency: Swedish krona (SEK)
Population: Approximately 10.4 million
Number of US Expats: Approximately 18,000
Capital City: Stockholm
Primary Language: Swedish
Tax Treaty: Yes
Totalization Agreement: Yes

To help clear things up, here’s an overview of how Sweden’s tax law applies to US expats.

How do I pay my taxes directly?

Pay your taxes online at www.eftps.gov, over the phone, or through your tax professional, payroll service, or financial institution.

Do foreigners pay tax in Sweden?

Sweden offers its citizens some of the finest social programs: universal health insurance, unlimited sick days, subsidized childcare, and free university tuition.

Primary Tax Form for Residents: Swedish Tax Return (inkomstdeklaration)
Tax Year: January 1st to December 31st.
Tax Deadline: May 2nd (for online filing) or August 2nd (for paper filing)
Currency: Swedish krona (SEK)
Population: Approximately 10.4 million
Number of US Expats: Approximately 18,000
Capital City: Stockholm
Primary Language: Swedish
Tax Treaty: Yes
Totalization Agreement: Yes

To help clear things up, here’s an overview of how Sweden’s tax law applies to US expats.

What is the 183 day rule in Sweden?

Our compliance specialists have noticed that there is a common misconception about the 183-day rule. Many believe that they are free to go to work in any EU country without applying for a work permit or paying taxes as long as they work there under 183 days. As a result, these mistakes may lead to serious legal charges and tax liability.

We have put together this document providing information on everything you need to know about the 183-day rule.

How do I pay my ID card at Skatteverket?

Make an appointment at the Tax Office website.
Pay the application fee.
Go to a Tax Agency offices that issue ID card.
You do not need to bring a photograph as you will be photographed at the tax office.
At the tax office you must make an Electronic application.
Bring papers to prove your identity.

How long can I stay in Sweden without paying tax?

There are no EU-wide rules that say how EU nationals who live, work or spend time outside their home countries are to be taxed on their income.

However, the country where you are resident for tax purposes can usually tax your total worldwide income, earned or unearned. This includes wages, pensions, benefits, income from property or from any other sources, or capital gains from sales of property, from all countries worldwide.

How much tax will I pay in Sweden?

In Sweden, most people pay only local tax on their annual income. This tax varies depending on municipality and ranges from 28.98 per cent to 35.15 per cent. Sweden's average local tax rate is 32.34 per cent.

Earners above a certain income threshold set by the Tax Agency (link in Swedish) also pay 20 per cent state tax.

The Swedish tax system includes a so-called basic deduction, a sum that is exempt from the taxable income. The sum differs depending on whether a person is under or over 65, see link above.

How much tax is deducted from salary in Sweden?

Sweden is located in the heart of Scandinavia, between Norway, Finland and, off its south coast, Denmark. An EU member-state, Sweden has a reputation for trade and entrepreneurship and is also part of the World Trade Organisation, and the Organisation for Economic Co-operation and Development. Sweden currently ranks as the seventh-wealthiest country in the world by GDP: primarily an export-oriented economy, it draws on abundant natural resources including timber, iron ore, and hydropower - while skill-intensive sectors such as engineering, telecommunications, manufacturing and pharmaceuticals also represent important financial interests. Sweden’s business culture is based on egalitarianism, and is reinforced by a talented labour pool with an impressive work ethic. Many multinational businesses maintain a presence in Sweden including Volvo, IKEA, Electrolux, Tetrapak, and Eriksson, each taking advantage of favourable government business initiatives. In 2012-2013, Sweden was ranked as the fourth most competitive economy in the world by the World Economic Forum.

How do I claim tax-free in Sweden?

MOMS is a Nordic term for VAT. VAT means Value Added Tax and is tax imposed on the goods and services. VAT in Sweden works the same way as VAT in Europe or GST in Australia. Travellers and visitors with permanent resident outside the EU can apply for tax refund if they shop in Sweden.

If you’re a non-EU citizen or non-Norway citizen, you can apply for VAT return. The current VAT rate in Sweden is 25%.

What is the 6 month rule in Sweden?

If you already have an on-going application for a residence permit at the Swedish Migration Agency, you cannot be granted two permits at the same time. You will only receive a decision in the application considered to be most advantageous for you, which most often is an application for a residence and work permit as it gives you the right to settle in Sweden. If the application for a visitor’s permit is made while you are in Sweden, you are at risk of having your application for a residence and work permit rejected. If you are outside Sweden, you must wait until a decision is made in the application that is most advantageous for you. This may mean that the dates that you apply for a visitor’s permit may have passed when the decision is made. The Swedish Migration Agency therefore recommends that you do not apply for a visitor’s permit in these cases.

be able to support yourself during the time you will be in Sweden
have a valid passport (the passport must be valid for at least three months after the end date of the visit)
have a return ticket or money to buy a ticket.

How do I pay for my Swedish ID card?

From 2 August 2021, new requirements and validity periods for national identity cards apply. An important change is that fingerprints need to be provided when applying for a national identity card. For persons who, for temporary physical reasons, are unable to leave fingerprints, the period of validity is limited to a maximum of one year. The validity period for national identity cards for children under the age of twelve is also reduced from five years to three years. The changes are introduced due to an EU regulation on increased security for certain identity and residence documents.

If you already have a national identity card, it is still valid for the time indicated on the card. You therefore do not need to apply for a new national identity card due to the new requirements and validity periods.

If you are a Swedish citizen over 18 years old and living in Sweden, you are required to take the following with you:

Valid identification (a valid passport is one of several valid ID documents)
Your old passport, if it is still valid

Photographs will be taken at the passport office. All who apply for passports and national ID cards must personally come to the police passport office, including children and adolescents.

Where can I pay my Swedish ID card?

The Embassy in Ottawa will order Swedish ID numbers for newborns and persons who have never had a Swedish passport, national ID card or been registered with the Swedish Population Register. It is necessary to have a Swedish ID number before you can apply for a passport or a national ID card. If the parents/guardians have not registered the name of the child, this will be done at the same time.

When a child is born abroad, parents must notify the Tax Agency in Sweden.

What is the 183 rule in Sweden?

Sweden’s restrictions were today (9th February 2022) lifted, and the entry ban on travellers from EU/EEA, was also removed. Thus, the stream of business travellers to Sweden is expected to increase.

What should one keep in mind to stay compliant in relation to business trips to Sweden? Should one just board the plane and sit back, or are there tax and social security rules to consider? In this brief article, we at Skeppsbron Skatt address some topics, to keep in mind for business trips.

What percentage of people in Sweden pay income taxes?

This is not true — 56 percent is the marginal tax rate, i.e. what high earners pay on income over a certain amount in both state and local taxes. Only 15 percent of Swedes pay tax at this rate. It turns out the average Swede pays less than 27 percent of his or her income in direct taxes.

What is the corporate tax rate in Sweden?

The corporate tax rate in Sweden is 21.4 percent. Additionally, there is a VAT rate of 25%, and other taxes may include excise duties; real estate, stamp and payroll taxes; Social Security fees; and more.

What is the income tax rate in Sweden?

What is the income tax rate in Sweden? The employment income tax rate in Sweden is progressive and ranges from 0% to 20% depending on your income for residents while non-residents are taxed at a flat rate of 25%. This income tax calculator can help estimate your average income tax rate and your salary after tax.

Can I pay with cash in Sweden?

Paying in cash has some unwritten rules in Sweden, but they are not absolute, you hand over cash hand to hand but if neither party is comfortable with that type of exchange then its better to leave it on the counter.

What percentage of people in Sweden pay income taxes?

This is not true — 56 percent is the marginal tax rate, i.e. what high earners pay on income over a certain amount in both state and local taxes. Only 15 percent of Swedes pay tax at this rate. It turns out the average Swede pays less than 27 percent of his or her income in direct taxes.

What is the corporate tax rate in Sweden?

The corporate tax rate in Sweden is 21.4 percent. Additionally, there is a VAT rate of 25%, and other taxes may include excise duties; real estate, stamp and payroll taxes; Social Security fees; and more.

What is the income tax rate in Sweden?

What is the income tax rate in Sweden? The employment income tax rate in Sweden is progressive and ranges from 0% to 20% depending on your income for residents while non-residents are taxed at a flat rate of 25%. This income tax calculator can help estimate your average income tax rate and your salary after tax.

Can I pay with cash in Sweden?

Paying in cash has some unwritten rules in Sweden, but they are not absolute, you hand over cash hand to hand but if neither party is comfortable with that type of exchange then its better to leave it on the counter.