Swedish Tax implications for British citizens

If I get a contract job in Sweden, working under my UK limited company, what are the general and basic tax implications?

I will be looking to live in Sweden for longer than 6 months but less than a year initially.

The accountant I briefly spoke to seemed to suggest that for the first 6 months I will be paying UK tax and after 6 months will be subject to Swedish tax law.

Has anyone got similar experience?

I am English, living in Sweden. My English husband has his own company here (Carpentry and Building).
From our experience (employing carpenters from the UK) you can work here and get paid into your UK bank account and are subject to UK taxes for 6 months.
You then have to go back to the UK. I do not know exactly how long you have to return to the UK before you can repeat the process.
Hope this helps.

Thanks for your reply. So seems like I will only pay UK tax for the first 6 months of living in Sweden even if I am full time resident in Sweden?

I will be moving full time so wont go back and forth between UK and Sweden.

Do you know what happens after the 6 months?

Hi and welcome to the Forum.

Where and when you pay your taxes is always decided by where you are classed as being "resident".  What this means is that if you move to any country and start living and working there, you are classed as being resident in that country and liable to the tax rules there (for example, you hate the UK and decide to pack up and move to Sweden).  Temporary work does not fall in this category until you live in the country for more than 6 months when you become a tax resident.

However, there is a double taxation treaty in place between Sweden and the UK; this link will take you to the UK Gov website where you can read the details.  What these treaties mean is that you will not be assessed for taxes on income that has already been assessed in the other country; so UK income that has been assessed in the UK will not be assessed again for income tax in Sweden.  Please note that the word "assessed" does not mean "paid".

Hope this helps.

Expat Team

Very informative post here.

That is very useful. thanks so much.

So if I understand it correctly - when I initially move, I will still be paying tax for 6 months in the UK and once I have stayed continuously for 6 months in Sweden, I will be classed as a resident in Sweden and start paying tax in Sweden and stop paying tax in UK due to this treaty?

Hi again.

Not quite; from what you've said "I will be looking to live in Sweden for longer than 6 months", you are leaving the UK to go and live in Sweden - the fact that you go on to say "less than a year initially", is largely irrelevant as far as the tax man is concerned - they deal in facts, not if's and maybe's; you will need to go and register as a resident in Sweden on arrival and then submit your tax returns as that country requires it.  The good news is you won't pay tax twice on the same income, but having just had a quick scan of the headlines, you may find the UK quite benign in comparison.

One thing I just spotted, like Holland (where I do know a bit about the tax situation), Sweden also has social security taxes, which like Holland are not classed as income tax and are levied at approx 31% of income; more importantly, these taxes are not covered by the tax-agreement.  These are normally paid by the employer with a nominal amount for pension contribution paid by the employee; as you seem to be self-employed, you would be liable for them.

I strongly advise you speak to a tax consultant.

Hope this helps.

Expat Team

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