Do I need to file taxes in Sweden?

This text explains how the Swedish tax system works. It also explains tax returns and how you go about filing your tax return.

Tax is a charge that pays for public expenses. We pay taxes on our income and on goods and services.

How to file a tax return in Sweden?

Any foreigner working in Sweden has the right to get money from the State - to refund overpaid taxes.Don't miss out!

How much is income tax in Sweden?

I was visiting the Apostle Islands National Lakeshore, a 23-island archipelago in Lake Superior, when suddenly I found myself pining for Stockholm. Why? Because standing on the boat dock in Bayfield, Wisconsin, I realized that the 23,000-island Stockholm archipelago is more accessible to me, an American, than my own 23-island national park.

These wilderness islands with haunting sea caves are accessible only by tour boat at a cost of $151 for a family of two adults and three children. There is no free 15-minute ride across the strait to Basswood Island closest to the mainland, nor a $10 shuttle between the islands, as there would be in Sweden where a heavily subsidized ferry system makes the Stockholm archipelago available to all citizens — as well as to American tourists.

What is the tax year in Sweden?

Sweden has a progressive income tax and income thresholds are adjusted each year. On earnings up to about SEK 440,000 per year, you will pay approximately 30-33% in local income taxes, depending on which municipality you live in. On any earnings over this figure, you will also pay national income taxes, with the money going to the state. The rate is 20% on income between about SEK 440,000 and 640,000, and 25% on income over SEK 640,000.

Paying taxes in Sweden is very straightforward: employers pay payroll tax on top of your salary every month, income tax is deducted directly from your monthly salary, and value-added tax is included in the price of food, goods and services. Every person is taxed individually, even when married.

If everything appears correct on your mandatory, pre-printed annual tax return, reporting your taxes may simply involve sending a text message from your mobile phone to the Swedish Tax Agency (Skatteverket) to confirm this. For more information visit the Swedish Tax Agency website.

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

If you have residual tax to pay, you have to make the payment into your tax account.

In order for Skatteverket to credit your payment, you must cite your personal identification number or organisation registration number or special registration number or your OCR-number.

If you cite your personal identification number or organisation number or special registration number it should be in the following format: xxxxxx-xxxx.

When you receive your final tax statement, you have 90 days to pay any residual tax due. The payment deadline is specified on your final tax statement. Most people will receive a final tax statement in june 2023, and will have to pay any residual tax by 12 September 2023 at the latest.

If your tax arrears are less than SEK 100 you can postpone paying them until the sum has reached SEK 100.

How do I claim tax-free in Sweden?

If you did not live in Sweden for the whole of the income year, you only get a basic tax-free allowance for the part of the year that you lived here.

But if 90 per cent or more of your income from employment (including pension) for the income year concerned is declared in Sweden, you have the right to a basic tax-free allowance for the whole of the year even though you only lived here for part of the year.

How do I claim tax free in Sweden?

If you have permanent residence in a non-EU country - except for Norway and Åland.
If you are a non-EU citizen who has a residence or work permit in EU, Norway or Åland, and you have obtained an official document from the tax authorities confirming that you are no longer living in EU, or Norway. The document cannot be older than 3 months.
If you are a EU or Norway citizen who has a 1 year residence, or work permit in a non-EU (and Norway) country and you can prove that you are no longer living in the EU.

VAT Rate in Sweden is higher than average. It means you can get potentially higher VAT refund as a tourist.
There is no non-refundable item for tax free shopping in Sweden.

Are Swedish tax returns public?

If you wish to access public information through the Swedish Tax Agency, the easiest way to do so is to call our information line on 0771-567 567 (or +46 8 564 851 60 from outside Sweden).

You can also email us. Bear in mind that any email you send us will become an official document that the general public and mass media may have the right to read if they request access to it.

You can also access information by visiting one of our service centres.

Why is Sweden tax so high?

Because us Swedes have a very simple, equal, seethrough tax system. I for instance, pay 27% in tax on my salary, and 25% vat (sales tax) on any things, clothes etc I buy, 12% vat on food and 6% vat on going to the theatre, cinema, theatre, taking a taxi ride. That’s it!

I get an electronic, form from the tax agency once a year with all figures for last year filled in. I check that I get back about as much as I have thought I’d get back (vague calculations in my head), and then sign it electronically with my bank-ID app. Takes me three minutes per year. The rest of the time I don’t think about the taxes, I’m just happy that I get as much as I get!

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.

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.

Why are taxes in Sweden so high?

A Guardian headline from 2008 proclaims: 'Sweden: Where tax goes up to 60 per cent, and everybody's happy paying it'. An opinion piece for Vox that regularly does the rounds on social media has the title: 'I'm an American living in Sweden. Here's why I came to embrace the higher taxes.'

It's true that Swedes report a high level of satisfaction in the country's public services, and even the Tax Agency itself enjoys a good reputation. According to a 2017 poll by Kantar Sifo, the Tax Agency has the fifth best reputation of Sweden's 29 public authorities, scoring highly on categories such as accessibility.

How long can I stay in Sweden without paying tax?

If you are a citizen of a country outside of the EU and have lived continuously in Sweden for five years, you may be granted long-term resident status in Sweden. Having this status means that you have certain rights which an EU citizen has and that you are more likely to be able to work, study or start your own business in another EU country.

Long-term resident is a legal status and it is not the same as a residence permit. If you are applying for long-term resident status in Sweden, the Swedish Migration Agency will only consider whether you can obtain such status in Sweden. We do not check whether you can get a residence permit, for example due to moving to a family member, study or work. Neither do we examine whether you can obtain long-term resident status in another EU country.

Check carefully whether you meet the requirements before submitting an application.

have lived continuously in Sweden for five years
have had a residence permit, or legal residence in Sweden on other grounds, for the previous five years.
be able to support yourself and your family.

If you are a refugee and have subsidiary protection status, you can count the time from the day when you submitted your application for asylum or application for new examination.

Are tax returns public in Scandinavia?

Would you be happy to have your tax return displayed for everyone to see? In Norway, no one can disguise their earnings, as every citizen’s is made available for everyone else in the country to inspect. Workers can see what their colleagues earn and neighbours can snoop on how much the people next door make - all legally and online.

On a date every year in October, just after midnight, Norwegian citizens’ annual tax returns are posted online - and the country’s Norwegian newspapers leap to produce top ten lists of the country’s highest earners, the incomes and taxes paid by the political and cultural elites, celebrities and sportspeople.

Is Sweden a low tax country?

The Tax Foundation' s International Tax Competitiveness Index (ITCI) measures the degree to which the 38 OECD countries' tax systems promote competitiveness through low tax burdens on business investment and neutrality through a well-structured tax code. The ITCI considers more than 40 variables across five categories: Corporate Taxes, Individual Taxes, Consumption Taxes, Property Taxes, and International Tax Rules.

The ITCI attempts to display not only which countries provide the best tax environment for investment but also the best tax environment for workers and businesses.

Countries raise tax revenue through a mix of individual income taxes, corporate income taxes, social insurance taxes, taxes on goods and services, and property taxes. The mix of tax policies can influence how distortionary or neutral a tax system is. Taxes on income can create more economic harm than taxes on consumption and property. However, the extent to which an individual country relies on any of these taxes can differ substantially.

Is Sweden the highest taxed country?

Taxes come in many forms, including sales tax, income tax, property tax, inheritance and estate taxes, excise tax, and more. Plus, tax rates and regulations vary greatly from country to country, and even within different parts of the same country. For example, most U.S. states charge some form of income tax, but an individual state's income tax rate may be anywhere from 1% to 13.3%. Moreover, seven states (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming) do not collect any state income tax at all, and two more (New Hampshire and Tennessee) tax interest and dividend income, but not wages or salaries.

Similarly, most U.S. states charge a state sales tax, but some do not. However, states without a sales tax or an income tax may add or raise other taxes to make up for the deficit, such as implementing higher property tax rates. Finally, most governments that levy taxes charge different percentages based upon the amount of income or type of goods being taxed. For example, a person who makes $40k a year may pay 12% in income taxes while their next-door neighbor, who makes $200k, pays 25% or more. Similarly, sales of basic needs such as groceries are typically taxed at a much lower rate than sales of luxury items such as tobacco products or a new car. For this article, we’ll compare three main types of taxes: personal income tax, corporate tax, and sales tax.

What forms do I need to file taxes?

Below are the most common tax forms that you will need in order to calculate your gross income. Form W-2 shows the income you earned through services performed as an employee. 9 If you worked a contract job or side gig, then you will need a Form 1099-NEC (nonemployee compensation).

How do I electronically file my taxes?

Choose an IRS Free File option, guided tax preparation or Free File Fillable Forms. You will be directed to the IRS partner’s website to create a new account or if you are a previous user, log in to an existing account. Prepare and e-file your federal tax return. Receive an email when the IRS has accepted your return.

What forms do I need to file taxes?

Below are the most common tax forms that you will need in order to calculate your gross income. Form W-2 shows the income you earned through services performed as an employee. 9 If you worked a contract job or side gig, then you will need a Form 1099-NEC (nonemployee compensation).

How do I electronically file my taxes?

Choose an IRS Free File option, guided tax preparation or Free File Fillable Forms. You will be directed to the IRS partner’s website to create a new account or if you are a previous user, log in to an existing account. Prepare and e-file your federal tax return. Receive an email when the IRS has accepted your return.