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Working for a non-Swedish company

Income and social taxes

Dema
post 25.Jan.2021, 06:41 PM
Post #1
Joined: 25.Jan.2021

Hello,
Later this year i will be moving from the Netherlands to Sweden to live there permanently.
I work for a small Dutch IT company and will keep working for them as i do my work 100% online, i can work from home.
I'm trying to figure out how the taxes on my income have to be paid. I've read alot of information about it, but it seems like i'm running in circles at the moment.
What i'd like to know is how we (my employer and me) have to handle the taxes properly. As far as i understand there's 2 parts of taxes, one is income tax and i can pay that myself (so my employer pays me in full). The other part is social taxes and that part is very blurry as to how to handle that.
Does anyone have any experience with this and can give some insight?
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Essingen55
post 25.Jan.2021, 06:53 PM
Post #2
Joined: 12.Dec.2013

maybe this will help you...

https://skatteverket.se/servicelankar/other...7df4192f0e.html
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Dema
post 25.Jan.2021, 07:00 PM
Post #3
Joined: 25.Jan.2021

I have come across this, however i run into the issue regarding "permanent establishment"
https://skatteverket.se/servicelankar/other...7df4191c82.html
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Dema
post 25.Jan.2021, 07:03 PM
Post #4
Joined: 25.Jan.2021

Specifically:
"A home office can be counted as a permanent establishment if an employee performs tasks for the company there on a regular and continuous basis. The Swedish Tax Agency will make an assessment based on various factors, such as whether or not the company has made any other workplace available to the employee, and the necessity of such a workplace."
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ChocOwl
post 26.Jan.2021, 09:19 AM
Post #5
Joined: 17.Jan.2011

Unfortunately I have no specific advice but I have personally found the Swedish tax office very helpful so I reckon you should email them with questions. You can of course telephone them instead, but it's always good to have stuff like this in writing.

Will you be an employee of the Dutch company or a sole trader in Sweden working as a contractor? If it is the latter there is lots of info for sole traders on e.g. verksamt.se. It could be slightly beneficial to you finacially to be a sole trader rather than an employee, depending on a bunch of factors.
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DuneSunny
post 26.Jan.2021, 10:52 AM
Post #6
Joined: 11.Mar.2014

I re-located here many years ago from another EU country. At the time all of my income tax was to be paid in Sweden. The only option I did have was to continue paying my pension and other social taxes in the country I had re-located from for a maximum of 3 years, just in case I decided to move back and didn't want to have to claim a very small pension when I reached 65 from Sweden. I imagine it is pretty similar today. If you are moving her permanently, then I would opt to pay your social taxes in Sweden form Day 1.
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TheExpatEagle
post 26.Jan.2021, 12:14 PM
Post #7
Joined: 23.Aug.2016

QUOTE (DuneSunny @ 26.Jan.2021, 10:52 AM) *
I re-located here many years ago from another EU country. At the time all of my income tax was to be paid in Sweden. The only option I did have was to continue paying my pensi ... (show full quote)


It wouldn't have been a small pension. The state pension is a minimum so if you pay into it for a year you get the minimum which is several thousand kronor.

On top of that, if someone moves here and plans to stay for any length of time more than one year why wouldn't that person want to be covered by the unemployment system which pays more than, I think, any other EU country? Maybe Denmark is equal.

Certainly when it comes to Sweden v UK it is hands down better to claim here.
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TheExpatEagle
post 26.Jan.2021, 12:16 PM
Post #8
Joined: 23.Aug.2016

That said, I know people living here who are not paying into the unemployment insurance despite working here for 2 years or more. They are somewhat nervous about the current situation because if they are made unemployed they are financially screwed.
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Dema
post 27.Jan.2021, 11:38 AM
Post #9
Joined: 25.Jan.2021

QUOTE (ChocOwl @ 26.Jan.2021, 09:19 AM) *
Unfortunately I have no specific advice but I have personally found the Swedish tax office very helpful so I reckon you should email them with questions. You can of course tel ... (show full quote)

I will be an employee if that works out ok, so no changes to the contract etc. However if the sole trader is a better option, we will look into that


QUOTE (DuneSunny @ 26.Jan.2021, 10:52 AM) *
I re-located here many years ago from another EU country. At the time all of my income tax was to be paid in Sweden. The only option I did have was to continue paying my pensi ... (show full quote)

I want to pay all my taxes in Sweden, including social taxes, as i intend to live in Sweden for the rest of my life. I believe if i would be paying social taxes in the Netherlands, i also need health insurance here etc... But that's useless if you don't live there and just adds costs for no reason. Also i believe we have to take care of our own pension, so that is not a problem anyway.
Been trying to call Skatteverket, but queues are loooong, but everyone knows that tongue.gif
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Dema
post 27.Jan.2021, 01:23 PM
Post #10
Joined: 25.Jan.2021

So i've finally spoken to someone at skatteverket, after waiting in a long queue just to be redirected to another queue...
Anyway, i've got the info i need, maybe it's of interest to anyone else.

The rules have changed since januari 1st 2021. Now the employer has to register at Skatteverket and give a monthly form with the salary, tax and social fees and pay the taxes and fees to Skatteverket.
The employee does not have to do anything anymore, everything is done by the employer.
Registration for the employer can be done through form 4632 (use that in the search function on Skatteverket.se). At the moment of writing, it is estimated to take about 6 weeks or more to have the registration processed. After that the employer gets all the information they need to fill in all the forms etc. From this moment they have to give the monthly info to Skatteverket about their employee(s), even if the salary is at 0 (i.e. employee is not living in Sweden yet, or has not started working for them yet).
I hope this info is usefull to someone else aswell.
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