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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.

© 2018 KPMG AB, a Sweden corporation and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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