Tax regimes for individuals: Sweden

Preferential and special regimes in 27 countries for people who relocate, work for themselves, invest or draw a pension. Conditions, time limits and the legal basis for each.

Regimes: 11

Expert tax relief for foreign experts, researchers and key personnel

Skattelättnader för utländska experter, forskare eller andra nyckelpersoner (expertskatt)

OpenFor people relocating

25% of pay exempt from income tax and employer contributions for up to 7 years

Details

Who: Foreign nationals (not Swedish citizens) who were not resident or habitually present in Sweden in the 5 calendar years before starting work, work for a Swedish employer or a foreign company's permanent establishment and intend to stay no more than 7 years: specialists, researchers, executives or key staff who are hard to recruit in Sweden — or anyone paid more than 1.5 price base amounts a month (SEK 88,800 for 2026).
How it works: 25% of salary and other pay for the work is exempt from income tax; employer reimbursements for moving, up to two trips a year to the former home country per family member and children's school fees are also exempt. The exempt part is also free of employer contributions. The relief lasts up to 7 years from the start of the stay in Sweden; Forskarskattenämnden (the Taxation Board for Foreign Experts) decides.
Duration: Up to 7 years from the day the stay in Sweden began
How to opt in: A written application by the employer or the employee to Forskarskattenämnden no later than 3 months after work in Sweden starts.
Limits and risks: Not available to Swedish citizens or to anyone resident in Sweden in the previous 5 calendar years; applications later than 3 months are not considered; the other 75% of pay is taxed normally.
Legal basis: Inkomstskattelag (1999:1229) 11 kap. 22–23 a §§; lag (1999:1305) om Forskarskattenämnden 6 §; socialavgiftslag (2000:980) 2 kap. 12 §
Checked: November 10, 2026

SINK — special income tax for non-residents

Särskild inkomstskatt för utomlands bosatta (SINK)

OpenOther

Flat 22.5% in 2026 (20% from 2027) instead of progressive tax, with no tax return

Details

Who: Individuals with limited tax liability in Sweden (non-residents) — including those coming to work for less than 6 months — receiving Swedish-source salary, board fees, pensions and other payments listed in the SINK Act.
How it works: Final withholding tax of 22.5% of the payment in 2026 (20% from 1 January 2027; 15% for seafarers' income on Swedish merchant ships) with no deductions and no return; for pensions under the Social Insurance Code 1/12 of 0.77 price base amounts a month (SEK 3,799 in 2026) is exempt. Instead of SINK one may elect ordinary taxation under the Income Tax Act each year.
How to opt in: Apply to Skatteverket (e-service or form SKV 4350), yourself or through the employer; after a SINK decision the employer withholds the tax and no return is needed. The same application can instead elect ordinary taxation under the Income Tax Act (basic allowance and earned-income reduction if at least 90% of income is from Sweden).
Limits and risks: Non-residents only; no deductions for expenses; pay from a foreign employer without a Swedish permanent establishment for stays of up to 183 days in 12 months is not taxed in Sweden at all (except for hiring-out of labour).
Legal basis: Lag (1991:586) om särskild inkomstskatt för utomlands bosatta, 3–7 §§ (7 § i lydelse SFS 2025:1355; från 2027 SFS 2025:1356)
Checked: November 10, 2026

Six-month and one-year rules — exemption of pay for work abroad

Sexmånadersregeln och ettårsregeln

OpenFor employees

Pay for the work abroad is exempt from Swedish tax

Details

Who: Swedish residents employed abroad for at least 6 months (six-month rule) or at least one year in the same country (one-year rule).
How it works: Pay for work abroad is exempt in Sweden if the stay abroad lasts at least 6 months and the income is taxed in the work state; if the stay in one country lasts at least a year, even when that state does not tax it under its own law or practice. Short visits to Sweden are allowed: up to 6 days per full month or 72 days per employment year.
How to opt in: No separate application: the exemption is applied in the final tax assessment for the year; the employee must show the length of the work abroad and (for the six-month rule) that tax was paid in the work state.
Limits and risks: The six-month rule does not apply if the foreign tax was levied contrary to law or treaty; the one-year rule does not apply to state and municipal employees (except service exports); neither applies to ship crews or Swedish, Danish or Norwegian aircraft crews.
Legal basis: Inkomstskattelag (1999:1229) 3 kap. 9–13 §§
Checked: November 10, 2026

Expansion fund — retained sole-trader profit taxed at 20.6%

Expansionsfond

OpenFor the self-employed

20.6% on profit kept in the business instead of progressive tax and contributions

Details

Who: Sole traders (enskild näringsidkare) and individuals who are partners in Swedish trading partnerships (handelsbolag).
How it works: Profit kept in the business can be deducted from business income by paying a 20.6% expansion fund tax instead of progressive income tax and self-employment contributions. When the fund is reduced (reversed into income), the amount is taxed normally and the 20.6% already paid is credited.
How to opt in: The allocation is claimed in the annual tax return.
Limits and risks: The fund may not exceed 125.94% of the business's capital base; tax is only deferred — when the fund is reduced, the amount is taxed normally (with a credit for the 20.6%).
Legal basis: Inkomstskattelag (1999:1229) 34 kap.; 65 kap. 8 §
Checked: November 10, 2026

Interest allocation — part of sole-trader profit taxed as capital income (30%)

Räntefördelning

OpenFor the self-employed

8.55% of business capital (2026) taxed as capital income at 30%

Details

Who: Sole traders and partners in Swedish trading partnerships with positive capital in the business.
How it works: A part of profit equal to the business capital at the start of the year times the government borrowing rate at the end of the previous November plus 6 pp (8.55% for 2026) may be moved from business income to capital income, taxed at 30% with no self-employment contributions. If capital is negative by more than SEK 500,000, negative allocation is mandatory (rate + 1 pp, 3.55% for 2026).
How to opt in: Positive allocation is claimed voluntarily in the annual tax return; negative allocation is mandatory.
Limits and risks: Limited to the year's adjusted profit; worthwhile only with substantial equity in the business.
Legal basis: Inkomstskattelag (1999:1229) 33 kap. 2–5 §§
Checked: November 10, 2026

Tax allocation reserve — deferral of up to 30% of sole-trader profit for 6 years

Periodiseringsfond

OpenFor the self-employed

Deferral of tax on up to 30% of profit for up to 6 years

Details

Who: Sole traders and individuals who are partners in Swedish trading partnerships.
How it works: Up to 30% of the year's adjusted profit may be deducted as an allocation to a tax allocation reserve; it must be reversed into income no later than the sixth year after the deduction (2026 allocations by 2032). This smooths income between years and reduces state tax in high-profit years.
Duration: Up to 6 years for each allocation
How to opt in: Claimed in the annual tax return.
Limits and risks: Tax is only deferred; the oldest allocations are reversed first.
Legal basis: Inkomstskattelag (1999:1229) 30 kap. 6–7 §§
Checked: November 10, 2026

3:12 rules — owner-manager dividends taxed at 20%

Utdelning och kapitalvinst på kvalificerade andelar i fåmansföretag (3:12-reglerna)

OpenFor the self-employed

Dividends within the threshold (from SEK 322,400 in 2026) taxed at 20%

Details

Who: Holders of qualified shares in close companies (fåmansföretag, usually limited companies) who, themselves or through relatives, work actively in the company.
How it works: Dividends within the threshold amount (gränsbelopp) are taxed as capital income on 2/3 of the amount, i.e. effectively at 20%; above it, as salary (progressive, up to 90 income base amounts a year). From 2026 the threshold = a basic amount of 4 income base amounts of the previous year (SEK 322,400, one per person) + 50% of the company's wages above 8 income base amounts + interest on invested capital above SEK 100,000; unused room is carried forward.
How to opt in: The threshold is calculated and dividends declared in the annual tax return.
Limits and risks: Only one basic amount per person regardless of the number of companies; dividends above the threshold are taxed as salary; company profit is first subject to corporate tax.
Legal basis: Inkomstskattelag (1999:1229) 57 kap. 9–11 a, 16, 20, 20 a §§ (i lydelse SFS 2025:1361)
Checked: November 10, 2026

Investment savings account (ISK) — taxed on a notional return

Investeringssparkonto (ISK)

OpenFor investors

Tax of 1.065% of capital above SEK 300,000 (2026) instead of 30% on gains

Details

Who: Individuals holding an investment savings account with a bank or investment firm (for listed shares, funds and other permitted assets).
How it works: Gains and dividends on the account are not taxed. Instead, a notional return (schablonintäkt) is taxed each year at 30%: average account capital × (government borrowing rate at the end of the previous November + 1 pp, minimum 1.25%). For 2026 it is 3.55%, i.e. tax of 1.065% of capital; from 2026 the first SEK 300,000 in total across ISK, capital insurance and PEPP is exempt.
How to opt in: Open an account with a bank or investment firm; Skatteverket pre-fills the notional return and the exemption in the tax return.
Limits and risks: Tax is charged on the notional return regardless of the actual result — even in a loss year.
Legal basis: Inkomstskattelag (1999:1229) 42 kap. 35–41, 45–48 §§; lag (2011:1268) om investeringssparkonto
Checked: November 10, 2026

Investor deduction for investments in small companies

Investeraravdrag

OpenFor investors

Deduction of 50% of the investment (up to SEK 650,000 a year) from capital income

Details

Who: Individuals who acquire shares for cash on the formation or a new share issue of a small company (fewer than 50 staff, turnover or balance sheet up to SEK 80 million, payroll of at least SEK 300,000) and are taxable in Sweden on gains on those shares.
How it works: Half of the amount paid is deducted from capital income, up to SEK 650,000 a year; a capital-income deficit arising from it always gives a 30% tax reduction, so effectively up to 15% of the investment is returned (max SEK 195,000 a year).
How to opt in: Claimed in the annual tax return for the year in which the shares are fully paid.
Limits and risks: The deduction is reversed if the shares are sold within 5 years or the owner receives excessive value transfers; the total base per company is capped at SEK 20 million a year.
Legal basis: Inkomstskattelag (1999:1229) 43 kap. 4, 13–15, 20–22 §§; 67 kap. 10 §
Checked: November 10, 2026

Higher basic allowance and earned-income reduction for people aged 66+

Förhöjt grundavdrag och förhöjt jobbskatteavdrag för personer som fyllt 66 år

OpenFor pensioners

Basic allowance up to SEK 179,100 (2026) and a separate earned-income reduction up to ≈ SEK 37,254

Details

Who: People who were 66 on 1 January of the tax year (67 from 2027) — pensioners and workers of that age.
How it works: The basic allowance is raised by an extra amount depending on income: SEK 65,800–179,100 in total for 2026 (instead of SEK 17,400–45,600). A separate earned-income reduction applies to work income: 22% up to 1.75 price base amounts, max 0.6293 price base amounts (≈ SEK 37,254). For employees aged 67+ the employer pays only the old-age pension contribution of 10.21% instead of 31.42%.
How to opt in: Automatic by age — in the withholding tables (columns 2–3) and in the final tax assessment.
Limits and risks: From 2027 the age threshold is 67; the 66+ earned-income reduction applies to work income only, not to pensions.
Legal basis: Inkomstskattelag (1999:1229) 63 kap. 3 a §; 67 kap. 8 §; socialavgiftslag (2000:980) 2 kap. 27 §
Checked: November 10, 2026

Regional tax reduction for residents of northern and sparsely populated municipalities

Regional skattereduktion

OpenOther

SEK 1,675 a year

Details

Who: Individuals registered (folkbokförda) on 1 November of the previous year in one of the municipalities listed in Annex 67 to the Income Tax Act (mainly in Norrland, Dalarna, Värmland, etc.).
How it works: A fixed reduction of municipal income tax by SEK 1,675 a year.
How to opt in: Automatic based on the registered address on 1 November of the previous year.
Limits and risks: Reduces municipal income tax only; for business owners subject to the EU de minimis state aid rules.
Legal basis: Inkomstskattelag (1999:1229) 67 kap. 34–35 §§, bilaga 67
Checked: November 10, 2026

The catalogue describes general conditions. Whether a regime fits you depends on your circumstances and the tax authority's decision.