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Working for a UK company from Sweden

Moving to Sweden but working for a UK-bas employer

djsoa
post 28.Sep.2020, 07:42 PM
Post #1
Joined: 28.Sep.2020

A Swedish company has offered me a job in Sweden.

However, my current (UK) employer has made a counter-offer - that I could live in Sweden while continuing to work (remotely) for the UK company.

The UK offer is more enticing because (a) the salary works out significantly better (and would still be better even if subjected to Swedish tax rates) - and this is after asking the Swedish employer to increase their offer (they increased it from 42000 sek a month to 45000 and said that was their final offer; they also agreed to increase vacation days to 30, but my UK contract entitles me to the same number; the Swedish company would cover moving costs, at least in part, which is significant, but these are a oneoff) and (cool.gif obviously I'm already familiar with the UK company and the work involved so it's a known entity and essentially I get on well with my work and with my colleagues etc.

I intend to move to Sweden before 1st January to reduce problems with the transition period ending.

But still, post-Brexit (or in general), could the fact that I would have a UK employer rather than a Swedish one make it more difficult to secure permanent residency in Sweden - or make things more difficult in other respects?

Pension contributions are very similar.

I understand that in due course I might become liable for Swedish tax but that treaties against double taxation should allow some or all of the tax paid to UK authorities to be offset against Swedish tax liability. It's very complicated but the UK salary is sufficiently higher* that it is probably still the better offer unless Brexit carries a risk of the agreement against double taxation being voided. (*My current pre-tax salary works out at about 55000 sek per month at the current exchange rate, although at a Swedish rate of tax I'd need to earn nearly 60000 per month in order to get the same take-home pay.)

Obviously, I would not be tied to the UK employer permanently and could still seek work from a Swedish firm at a later date, so it may be a good option.
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*Guest*
post 28.Sep.2020, 08:36 PM
Post #2


If you are a permanent resident in sweden then the Swedish tax office will expect you to pay full tax in sweden.
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Gamla Hälsingebock
post 28.Sep.2020, 08:58 PM
Post #3
Joined: 21.Dec.2006

I am curious about that...is it after(net)British tax deductions or on earnings(gross) before any British taxes???
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djsoa
post 28.Sep.2020, 09:00 PM
Post #4
Joined: 28.Sep.2020

QUOTE (Skogsbo1 @ 28.Sep.2020, 08:36 PM) *
If you are a permanent resident in sweden then the Swedish tax office will expect you to pay full tax in sweden.

Right, and when do I become a permanent resident? On arrival (if I say I intend to stay permanently), or later on?
Either way, double tax agreements generally mean that only one state has the right to collect income tax (the other may collect a limited amount) - assuming this is the case then I don't have to worry. I think it is only if no double tax agreement were applicable and both governments' tax authorities were demanding full tax that I'd really have problems.

I found the UK/Sweden treaty (signed 2016) called the "Convention for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital Gains" https://www.gov.uk/government/publications/...n-capital-gains
Haven't read it yet - but it does something vaguely like what the title suggests then I shouldn't need to worry too much.
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*Guest*
post 28.Sep.2020, 09:27 PM
Post #5


It's more with the number of days you're resident here per year, not residency status. To have healthcare, access to fibre etc.. you'll need a personal number, which in turn will require you being a resident and paying tax here.
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djsoa
post 28.Sep.2020, 09:35 PM
Post #6
Joined: 28.Sep.2020

Well, I would only be liable in Sweden for tax on UK income if I was resident in Sweden for more than 183 days - which I would be, in due course. After that point I am liable for tax in both countries but the Convention on double taxation allows me to offset UK tax paid against Swedish liabilities as per the link I gave earlier.
Whether I have to wait 183 days before I can start paying and thus gain access to fibre I'm not clear, but my partner has a personal number so we can get it that way in the meantime.
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*Guest*
post 28.Sep.2020, 09:44 PM
Post #7


Once you are living in sweden you'll be liable for tax from that day onwards. I'd move quick as it'll be easier this year. Next year is guess work.

Good luck, but I think your vision of enjoying life here, working for a uk company, paying a bit of tax in each country is flawed. It goes against anything I've known here in the last 10 years, as a Swedish sole trader/ self employed and with a separate UK income source.

Double tax would work if I sold a uk property, I'd pay UK tax on the profit, the Swedish tax authorities would offset this value against their tax.
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djsoa
post 28.Sep.2020, 10:08 PM
Post #8
Joined: 28.Sep.2020

QUOTE
Once you are living in sweden you'll be liable for tax from that day onwards. I'd move quick as it'll be easier this year. Next year is guess work.

Very true.
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Mib
post 30.Sep.2020, 10:28 PM
Post #9
Joined: 7.Jul.2006

As far as I understand, your employer will either have to pay you as a contractor and you then take care of the taxes OR they will be obliged to pay employer's tax fees which are far higher in Sweden. I think it's around 10-12% in the UK and 30%+ in Sweden. Unless you have health insurance, then you'll need a personal number to be able to access medical services etc.

Considering the UK is going to Brexit, then you'll likely need to apply for some kind of residency which no doubt will require you pay tax here. If you intend to stay longer than 183 days, which I presume you will considering the expense of moving, then you will be liable for tax.

There used to be a system where Swedish employers would pay less tax when employing somewhere from abroad when there wasn't a Swedish option. I think that lasts for 2 years. Not sure if that still exists though.

If you own any property in the UK, I would consider selling it as selling it after you arrive in Sweden could land you with a 22% CGT on the profit, even if its just your primary home in the UK.

If you get a mortgage here, you get 30% tax rebate on the interest up to 100K per year, per person. There are many other benefits, especially if you start a family etc.

Good luck!
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