Västerbotten Investment Agency

Worth to know about working in Sweden

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 In brief

  • Attractive and rewarding work environment
  • Local and state income tax
  • Tax relief for key foreign employees
  • Personal registration required for more than 12 months stay

Attractive work environment

Sweden offers an attractive and rewarding work environment to employees. Labor and employment protection frameworks are strong and there is a national culture of  constructive cooperation and dialog between employers and employees. Industrial disputes and conflicts are rare. The individual employee benefits include five weeks of paid annual leave, paid time off for sickness and childcare, paid parental leave, and pension benefits. As a general rule, working hours are regulated and overtime is compensated.

Taxes in Sweden

Income tax has two components: local income tax (which goes to the municipality and county council where the taxpayer is registered), and state income tax (which goes to central government). Local income tax rates vary between municipalities.
In 2012, the average local income tax rate was 31.6 percent.

Tax relief for key foreign employees

Key foreign employees – executives, experts, researchers and others with special skills that are not readily available in Sweden – may qualify for a special 25 percent tax break when working in Sweden. The individual is taxed on only 75 percent of his or her income for the first three years of employment in Sweden.

Personal registration required for more than 12 months stay

Civic registration and personal identity numbers Anyone who plans to reside in Sweden for more than 12 months needs to apply to a local office of the Swedish Tax Agency for tax and civic registration. After registration the applicant is assigned a personal identity number (personnummer). This number is unique and is needed to open bank accounts and obtain a phone number, etc.

More information

This is just a very short summary. More information is available through our fact sheets.

(Source: Business Sweden)