Sweden

Individual - Other tax credits and incentives

Last reviewed - 20 January 2020

Expert tax concession

Foreign experts and key personnel employed by a Swedish company or a non-Swedish company with a PE in Sweden may apply for an expert tax concession. The employment and stay in Sweden must be limited in time (not exceeding five years), and the employee must be a non-Swedish national and must not have been a Swedish tax resident at any point during the five calendar years prior to the year the employment in Sweden starts.

Under an alternative rule, the expert tax concession will be granted if the recurring income paid on a monthly basis exceeds two times the Swedish price base amount for the year the job in Sweden starts. For 2020, this corresponds to a monthly income exceeding SEK 94,600

To qualify for expert tax concession, the employee must apply for a ruling from the Taxation of Research Workers Board (Forskarskattenämnden). The application must be filed within three months of the day the employee started working in Sweden.

If the tax concession is granted, it applies to all taxable compensation paid by the Swedish resident employer, including base salary, annual cash bonuses, equity compensation, and benefits in kind.

The tax concession means that 25% of the compensation will be exempt from tax and social security charges during the first three years the employee works in Sweden. Some benefits, like school fees, moving allowances, and home travel allowances twice per year, are 100% tax exempt during this period. After the three years period, 100% of the compensation will be taxable.

Credit for losses

If the total of investment income and capital gains/losses is negative, a tax credit of 30% of the net deficit not exceeding SEK 100,000 and 21% of the net deficit exceeding SEK 100,000 is granted against certain other taxes. The tax credit may not be carried forward.