Wealth Retention Strategy
With more than 10 years of experience on the Swedish labor market, Aurenav can help you and/or your employee determine the best possible remuneration package in accordance to Swedish law.
Below is an example of the most common strategies:
Below is an example of the most common strategies:
Use tax breaks
Several tax breaks and other arrangements are available for ex-pats working in Sweden in order to counter-balance the high level of taxation in this country.
The Expert Tax Relief
The Expert Tax Relief is available for white collars that possess a talent or level of competence that implies significant difficulties in recruiting such expert in Sweden. If the tax relief is granted, a 25% reduction of the taxable income (including wages and benefits) applies. The expert is taxed on only 75% of his or her income for the first three years of employment in Sweden.
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The SINK Tax
The SINK tax is available for posted employees who will perform work in Sweden for a maximum of 6 months (residing in Sweden for longer than six months will result in retroactive taxation). The SINK tax allows the employer to deduct 25% as withholding tax of the taxable income of the employee; instead of the tax rate that would normally apply.
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The Expert Tax Relief
The Expert Tax Relief is available for white collars that possess a talent or level of competence that implies significant difficulties in recruiting such expert in Sweden. If the tax relief is granted, a 25% reduction of the taxable income (including wages and benefits) applies. The expert is taxed on only 75% of his or her income for the first three years of employment in Sweden.
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The SINK Tax
The SINK tax is available for posted employees who will perform work in Sweden for a maximum of 6 months (residing in Sweden for longer than six months will result in retroactive taxation). The SINK tax allows the employer to deduct 25% as withholding tax of the taxable income of the employee; instead of the tax rate that would normally apply.
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Set-Up a pension plan
The pension premiums paid by an employer for its employees are taxed at a rate of 24,26%, which is advantageous compared to the rate of 31,42% for regular income.
Pension premiums paid by an employer which does not have a permanent establishment in Sweden are tax free.
Pension premiums paid by an employer which does not have a permanent establishment in Sweden are tax free.
Take advantage of the A1 certificate
The A1 certificate allows employers having employees in Sweden to continue paying the social cost in the country of origin of the employee. An A1 certificate is usually valid for 24 months but can be renewed upon approval of the relevant authorities.
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