Sweden Long Contract Advice Please

[SEContractor]

Hi All,

I run a small limited company which provides services to multiple clients. There is an oppurtunity to take a long (1yr+) contract in Sweden. During this contract the contractor is expected to carry out ongoing work to support other work within the UK, albeit remotely. The Swedish contract would be provided by a UK agency so there would be no direct payment from the Swedish client. The contractor would still be paid into their UK bank account in Sterling. The contractor would probably rent an apartment (if possible) in Sweden.

From the research carried out if a contractor is providing services for over 6 months in Sweden they need to register as a tax resident? If this is correct please can someone advise of the way forward with this situation (i.e. is the contract financially viable) or point me in the direction of a good accountant.

Regards,

SEContractor

[data2010]

3 Months

EU/EEA citizens can freely reside in Sweden for up to three months and may start working before registering with the Swedish Migration Board. Work permits are not required. Those wishing to stay longer than three months in Sweden must apply to register their right of residence.

If you're here under 6 months then you'll only have to pay a basic rate of tax (30% as I remember), after that you'll be liable to pay the full rate.

/Michael
Denmark

[tim123]

EU/EEA citizens can freely reside in Sweden for up to three months and may start working before registering with the Swedish Migration Board. Work permits are not required. Those wishing to stay longer than three months in Sweden must apply to register their right of residence.

If you're here under 6 months then you'll only have to pay a basic rate of tax (30% as I remember), after that you'll be liable to pay the full rate.

/Michael
Denmark

That must be the intra-Scandinavian rule

I was told that under six months I had to pay nothing (I declared it on my UK SA form)

tim

[data2010]

No, this rule applies for all EU/EEA citizens, the Nordic countries don't need any permits at all. I ran into the same rules about 2 years ago, where I had a 12 month contract. Make sure that the contract stipulates that its under 6 months. Ask at the Swedish Embassy in London.

/Michael

[tim123]

It still doesn't correspond to what I was told.

Initially, I was signed up for a year so I took out a "first hand" flat rental and signed up at the local Skatteverket office - I already had a Personel number from a previous trip.

But the contract was cut short and I finished after 5 months. I was told by the management company that I wouldn't have to pay any Swedish tax. I didn't believe them, went into the Skatteverket to check and they confirmed the MC was correct.

I did however note that when you de-register from Sweden, the process is different if your new address is somewhere else in Scandinavia.

tim

[data2010]

If you were there previously for 5 months, did you get a residence permit?

/Michael