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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 he/she has his/her principal home in Sweden or is present in Sweden for at least six 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.

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