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jarrattn
24th August 2004, 14:27
How should I structure an 18 month contract in Sweden ?

I am based in Copenhagen, Denmark and will travel to Sweden daily. Which means I can pay SINK tax in Sweden at 25% flat rate with no allowances. This is for non-residents working in Sweden. This income would then be declared in Denmark, but not taxed under the double taxation rules. But I then need to be employed in Sweden and not self employed.

I have in the past used JSA International and Albany Systems management companies. I have had Sigma and Integra (both Swiss) recommended and Connexion (Luxembourg). I believe they all offer the same type of 'tax' management service and charge 5%.

Any ideas ? Avioding using a management company and paying a flat rate of 25% would be ideal and be totally above board.

Thanks, Neil

tim123
24th August 2004, 14:34
Are you going for the same job as me?!

I have a similar problem (except I haven't yet as I don't have a job offer).

Am keen to know what state you have reached?

tim

jarrattn
24th August 2004, 14:57
I do not know, which job are you going for ? I have been offered this job.

tim123
24th August 2004, 15:28
Obviously, I do not want to post too much detail on open forum.

As we both have ezboard inbox disabled, can you mail me (or supply your address), at tims_rubbish@hotmail.com and I'll give you a real address and we can take this offline.

Ta

tim

gchild
22nd January 2005, 19:16
I am very interested in finding out how you guys resolved this.

I have a possibility of a contract in Sweden for 24 months and I may well choose to reside in Copenhagen if this proves more profitable.

In any case I could really do with some advice on how best to proceed..... especially from people who have had similar experiences.

tim123
24th January 2005, 09:21
I haven't resolved this at all. I didn't get job number one as the interviewer had assumed some major skill set on my CV that wasn't there (probably because I don't have it).

Now, three months later, another department have come back to me with an interview for a job, for which I do appear to be in shoe-in.

So I'm in the same position as before. The swedish 25% rule does, on paper, appear to offer the same take home as using XYZ overseas management company and is 100% legit (draw your own conclusions about the alternative). But you need a Swedish company to pay-roll you (just like you need a Dutch one in Holland), but no-one seems to offer one.

Still looking

Tim

nissee
24th January 2005, 10:57
This place might be able to help you, they seem to be an umbrella company of some sort.

kundtjanst@konsultmarknaden.se
www.konsultmarknaden.se/ (http://www.konsultmarknaden.se/)

jarrattn
25th January 2005, 10:05
I did not accept the job, as it took too long to commute to Lund from Copenhagen by train (1:45 mins door to door) £250 a month. To go by car would take under an hour but cost £250 in petrol and £250 in bridge tolls per month.

So I am still at a big American telecoms firm in Copenhagen, 10 minutes from home.

But, other than this it would seem benefical to reside in Denmark and work in Sweden.

It is more normal to reside in Sweden and work in Denmark. Wages are higher in Denmark by 30% for many jobs, taxes are lower in Sweden, housing cheaper in Sweden, cars half price in Sweden.

So to combat this Sweden offers a flat rate 25% tax to get Danes to work in Sweden. This was going to end in 2004 but has been extended now for at least 2 years. There are no deductions - in both DK and SE you can claim travel to work and tax relief on all loans, so you loose this right. You also can have a car on Swedish number plates if you work in Sweden and live in Denmark. Cars in Denmark are subject to 180% registration tax and 25% VAT. In Sweden you pay only 25% VAT. So a new Golf GTi costs £42k in DK and £22k in Sweden.

If you live in Sweden and work in Sweden you do not have to pay tax on the first 25% of salary if you are not Swedish. You do pay full tax on the other 75%, which will be around 45%.

So on a contract paying £XX a hour it is better to live in DK and commute to SE. Plus Copenhagen is much more interesting than Malmo or Lund.

Neil

jarrattn
25th January 2005, 20:48
www.oresundskomiteen.dk/n...0000063558 (http://www.oresundskomiteen.dk/neobuilder.php?id=2004052509222760000063558)

If you can read Danish or Swedish there is a .pdf file here called Work in Sweden ? Work in Denmark ? Which examines several different people in different jobs and where it pays best to work.

Neil

gchild
27th January 2005, 16:27
Thanks a lot for all your comments.

As it turns out I won't be working in Sweden after all. The client was taking way too long to decide whether to hire my services, and I've received an offer here in the UK which I have accepted.

Will keep the advice in mind though as one never knows what will come up in the future.

good luck to you all....