Tax relief for foreign key personnel
Rules for tax relief for specially qualified researchers/foreign experts were introduced in 2001. The tax relief means that 25% of the salary, for a maximum of three years, can be exempted from taxation, and the basis for employer's social security contributions is reduced accordingly. Certain cost reimbursements can be fully exempt from tax. However, it should be noted that this is not comparable to individuals who have the Special Income Tax for Non-Residents (SINK tax).
Information about SINK tax on the Swedish Tax Agency's website →
The requirements for granting tax relief, known as expert tax, are:
- The person is not a Swedish citizen.
- The person stays in Sweden for at least six months to become fully tax liable.
- The person has not been residing or habitually residing in Sweden during the last five years.
- The time limit of the employment is a maximum of five years.
- The research is of such high quality that the necessary competence implies "significant difficulty" in recruiting within the country (postdocs are not sufficient grounds).
- The application must be submitted to the Research Taxation Board (Forskarskattenämnden) no later than three months after the employee started working in Sweden.
Information about the prerequisites for tax relief on Forskarskattenämnden's website →
The application for tax relief can be made by the employee, the employer, or jointly by both.
Individuals who reach a compensation level per month exceeding two times the price base amount for the calendar year when the work starts may also be covered by the above-mentioned tax relief. The requirements to qualify for the tax relief are the same as listed above.
Note: The decision of the Research Taxation Board (Forskarskattenämnden) can be appealed by the Swedish Tax Agency, which means that the decision cannot be enforced until it becomes legally binding.
Information about this and application forms can be found on the Research Taxation Board's website, see the link below. The board assesses and decides upon special applications. Decisions on research tax can be sent by email or internal mail to the Payroll Unit (lon@uu.se). The decision is retroactive, but it is not possible to adjust already paid taxes. If too much tax has been deducted in previous months, they will be adjusted in connection with the individual's private tax return.
Forskarskattenämnden's website →