(edit title) Living in Sweden and working remotely (EU/USA) Can I telecommute from Germany or US? Options

[byke]

I would still appeal to the OP to research into education for his child before committing.
As even Finland has much higher standards of education.

[California Girl 3]

He has investments in the company in the US. Way too complicated and will probably cost a fortune in accountant fees every year if it is at all possible for him to be employed ... (show full quote)

He has investments in the company in the US. Way too complicated and will probably cost a fortune in accountant fees every year if it is at all possible for him to be employed in Germany without a permit.

Much better to keep it simple given the dual tax treaty between Sweden and the US. Take contact with a professional as suggested by PDX and get accurate information! ... (hide full quote)

I must have missed where he talked about having investments in the company, but that likely does complicate things somewhat from a U.S. and Swedish tax perspective, and, of course, it is always good to get into contact with a professional about potential tax issues for those investments.

However, I just wanted to point out that if he is hired on a regular employee contract on a German contract through the German section of the company, he does not need any sort of additional German permit (residence or otherwise). The German company simply needs to verify that he is a resident of Sweden. The German tax office is not in any way involved, and he is a resident of Sweden for U.S. tax purposes (which allows him to use the Foreign Income Exclusion form to avoid any U.S. taxes on earned income). I would really suggest he check on this carefully with the Skatteverket; they do have tax experts who are experienced specifically with this kind of contract structure between Sweden and Germany as it is not at all uncommon. From my experience, it doesn't make a ton of sense to go through the hassle of trying setting up as a consultant for a single company. I remember looking into that at one point and it was definitely not a simple or acceptable thing to do from the Skatteverket perspective.

Alternatively, he can try it through a regular contract with the American office. It's possible that the dual tax treaty also allows him to earn the income from a U.S. source and not pay U.S. taxes. As a resident of Sweden, however, he will be required to pay all Swedish taxes.

[Paul Troon]

I must have missed where he talked about having investments in the company...

I was not clear in my original question; by personal investment I just meant that I have invested 10 years of my career and feel a personal loyalty to my colleagues. I'd like to continue working with them if possible.

However, I just wanted to point out that if he is hired on a regular employee contract on a German contract through the German section of the company, he does not need any sor ... (show full quote)

However, I just wanted to point out that if he is hired on a regular employee contract on a German contract through the German section of the company, he does not need any sort of additional German permit (residence or otherwise)... ... (hide full quote)

Good point about Germany. Besides the advantage of a Germany contract, being paid in a currency more closely aligned with the SEK might be prudent in these uncertain times. But that question is for a different post.

I am currently leaning more towards the idea of being a sole trader who contracts primarily with a single (foreign) company, ie. my former US employer. This link makes it sound perfectly legal:

Godkännande för F-skatt och godkännande för F-skatt med villkor

Nowadays, it is sufficient to have only one or a few clients to meet the requirements for F-tax. The new rules also mean that an entrepreneur who started his business with the former employer as first clients can be assessed as an independent trader and thus assigned F-tax.

Setting up as an F-tax sole trader seems like the simplest option and no less tax efficient than being employed in Germany.

The primary negatives would be managing the F-tax related payments and paperwork and not having a German style employment contract. Having been an 'at will' employee for my entire career not having a guaranteed contract is no great concern for me and I'm willing to take on the paperwork challenge (with professional help if necessary). I think the paperwork will be similar either way.

I'll post an update after I've talked through these ideas with someone at Skatteverket. Thanks again to everyone for the useful ideas.

[mångk]

I was not clear in my original question; by personal investment I just meant that I have invested 10 years of my career and feel a personal loyalty to my colleagues. I'd l ... (show full quote)

I was not clear in my original question; by personal investment I just meant that I have invested 10 years of my career and feel a personal loyalty to my colleagues. I'd like to continue working with them if possible.

Good point about Germany. Besides the advantage of a Germany contract, being paid in a currency more closely aligned with the SEK might be prudent in these uncertain times. But that question is for a different post.

I am currently leaning more towards the idea of being a sole trader who contracts primarily with a single (foreign) company, ie. my former US employer. This link makes it sound perfectly legal:

Godkännande för F-skatt och godkännande för F-skatt med villkor

Setting up as an F-tax sole trader seems like the simplest option and no less tax efficient than being employed in Germany.

The primary negatives would be managing the F-tax related payments and paperwork and not having a German style employment contract. Having been an 'at will' employee for my entire career not having a guaranteed contract is no great concern for me and I'm willing to take on the paperwork challenge (with professional help if necessary). I think the paperwork will be similar either way.

I'll post an update after I've talked through these ideas with someone at Skatteverket. Thanks again to everyone for the useful ideas. ... (hide full quote)

You are better of talking to someone at KPMG for example! They can answer questions Skatteverket cannot.

It is also best to get the correct answers to all of your questions from the beginning! It saves nasty surprises later!

[peecee_uk]

Apologies, I do not mean to hijack the thread at all but wondered if much of this taxation information is applicable to myself also.
I am moving to my pregnant partner in Sweden and the UK company I work for have allowed for me to work remotely too.
I can be getting myself more acquainted with language, be with my partner and also looking to secure myself employment in Sweden. that is the longer term plan.
I can apply for my residency once in Sweden already being an EU citizen but am not sure about the tax implications. (This info came from migrationssverket. It will be easier for us to do it that route because we can collate and deliver the required documents and signatures in person and directly).
Any help or direction to already mentioned details of how this works would be very helpful.
Again, apologies to the OP, your circumstances sounded rather close to mine and I thought that rather than start a new almost identical thread I may get help through this one.
For obvious reasons, I do not fancy paying tax to two countries if I can help it. My company has no department in Sweden and certainly would not allow me to operate as a contractor / franchise arrangement.

[mångk]

Your situation is a little simpler than the OP's.

You are an EU citizen so the EU regulations for the freedom of movement for workers applies but the OP is not an EU citizen so the right to take up employment anywhere within the EU irrespective of residence does not!

Best to speak either to Skatteverket or an accountant to get more information on the best way to do it and what forms to fill in.

[peecee_uk]

Thanks mångk,

I had a feeling that the "already an EU citizen" thing would simplify my situation slightly.
I have just called HMRC tax info line thingy ma bob and a guy is checking out what the situation is to avoid taxation in two countries or the best option available., one of which I will no longer be living in.

As I write this they called back and advised that I download a form (document P85) and fill it in with an accompanying letter providing the date of departure from the UK. They will then assign me an NT tax code which puts a stop on me paying tax in the UK.
I then register myself in Sweden as normal.

I shall back out of this thread now and make way for the OP and helpers.

[mångk]

Thanks for the update!

No need to back out of the thread!

You provided some valuable information. Teleworking is an option that many EU citizens may not even think about when they move to Sweden for love or what not. Those that are working in IT or other industries where it is possible to telework have a viable option rather than leaving their job and trying to find a new one in Sweden!

[peecee_uk]

In that case I will stay here for a little.
Yes, IT is certainly a handy profession to be in and since my employer are heavily promoting mobile working to its enterprise customer base, I was able to add some leverage to my request to move to Sweden.
I played the "put into practice what we preach card" and fortunately they like the cut of my jib so granted me the right to be where I need to be.
Heck, it is even in my job title, "Remote Engineer".