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Sweden - Special considerations for short-term assignments

Special considerations for short-term assignments

Taxation of international executives

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Residency rules
Payroll considerations
Taxable income
Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Residency rules

Are there special residency considerations for short-term assignments?

A foreign employee will be considered as resident in Sweden if they have their principal home in Sweden or is present in Sweden for at least 6 consecutive months. A stay is considered continuous despite temporary absence.

Non-residents are taxed under the special income tax act for non-residents. However, the employee may voluntarily choose to be taxed under the rules for tax residents.

Payroll considerations

Are there special payroll considerations for short-term assignments?

An application must be made in order to be taxed under the special income tax for non- residents.

Taxable income

What income will be taxed during short-term assignments?

If the employee is considered non-resident, only employment income (remuneration and benefits-in-kind) derived from Sweden will be taxed in Sweden. Trips to and from Sweden, when the employee starts and ends the assignment, are tax-free as well as housing if temporarily assigned.

For resident short-term assignees, ordinary tax rules apply.

Additional considerations

Are there any additional considerations that should be considered before initiating a short- term assignment in Sweden?

Not applicable.

Disclaimer

All information contained in this publication is summarized by KPMG AB, the Swedish member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on Inkomstskattelagen (1999:1229), Lag (1998:674) om inkomstgrundad ålderspension, Socialförsäkringslagen (1999:799), Socialavgiftslagen (2000:980), Lag (1984:1052) om statlig fastighetsskatt, Lag (2007:1398) om kommunal fastighetsavgift, Skattebetalningslagen (1997:483), Lag (2007:346) om skattereduktion för hushållsarbete, Skatteförfarandelag (2011:1244), Folkbokföringslagen (1991:481), Lag (2001:1227) om självdeklarationer och kontrolluppgifter.

© 2021 KPMG AB, a Swedish Aktiebolag and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

 

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

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