- Country Information
- Sweden
Who qualifies for expert tax relief (Expertskatt) in Sweden? How do employees apply?
Sweden’s Expert Tax Relief (known as expertskatt) is a tax program designed to attract highly skilled professionals and experts back to Sweden after they’ve worked abroad. This special tax relief offers a reduced income tax rate on an employee's salary for a limited time, making it easier for top talent to return to Sweden.
If you are a returning Swedish citizen or foreign worker planning to live and work in Sweden, you might be eligible for this tax relief. Here’s a comprehensive guide to who qualifies for expertskatt and how to apply for it.
Who Qualifies for Expert Tax Relief?
1. Swedish Citizens Returning to Sweden
Eligibility: Swedish citizens who have lived and worked abroad for at least three years may be eligible for the expert tax relief when they return to Sweden.
Profession: Applicants must have a specialized or expert-level role in fields such as IT, engineering, finance, research, medicine, or other highly skilled sectors.
Employer: You must be employed by a Swedish employer or a foreign employer with a permanent establishment in Sweden.
2. Non-Swedish Citizens Moving to Sweden
Eligibility: Foreign citizens who are new to Sweden and fill an expert-level role may also be eligible for expert tax relief. Similar to Swedish citizens, they must have a high level of expertise in their profession.
Profession: The applicant must have specialized skills or expertise that are required for the job they are being hired for in Sweden.
Employer: The individual must be employed by a Swedish company or a foreign employer with a Swedish branch.
3. Highly Skilled Workers on Short-Term Assignments
Eligibility: Individuals who are temporarily working in Sweden for a period of up to five years (without establishing permanent residence) may qualify, provided they are in a skilled or expert-level position.
Profession: Similar to the above, applicants must hold a highly specialized role.
Employer: They should be employed by a Swedish company or a foreign company with a Swedish establishment.
4. Key Personnel Transferred to Swedish Branches
Eligibility: Employees who are transferred to a Swedish branch of their foreign employer may be eligible for expert tax relief if their work in Sweden is considered a highly specialized role.
Profession: Roles must require expertise or specialization.
Employer: The employee must be transferred to a Swedish subsidiary or branch of a foreign company.
5. Returning Swedish Citizens with Specialized Knowledge
Eligibility: Returning Swedish citizens who have worked abroad and acquired unique skills or knowledge, particularly in scientific, technological, or research-based fields, can also apply for the expert tax relief.
Profession: Expertise in a high-demand field is necessary, such as technology, innovation, or research.
How to Apply for Expert Tax Relief
If you meet one of the above qualifications, here’s a step-by-step process for applying for expertskatt.
Step 1: Confirm Eligibility
Ensure that you meet the criteria for being an expert or specialist in a high-demand field.
Make sure that you’ve lived and worked abroad for the required period (usually three years).
Step 2: Gather Required Documents
Completed Application Form (SKV 1161): This is the form you need to apply for expert tax relief. You can download it from the Swedish Tax Agency’s website (Skatteverket).
Proof of Previous Employment Abroad: If you’ve worked abroad for the required period, gather documentation such as contracts, payslips, or tax returns from your foreign employment.
Employment Contract in Sweden: You need to provide a copy of your Swedish employment contract or job offer. Horizons can support you by ensuring you have fully compliant documents.
Professional Qualifications: You may be required to provide copies of your certifications, degrees, or other proof of your qualifications to demonstrate your expertise.
Salary Information: Include information on your salary or compensation package to ensure it meets the necessary threshold for expert tax relief.
Certificate of Coverage: If you’ve been paying social security in another country, you may need to provide a certificate confirming your previous coverage.
Step 3: Submit the Application
Submit the completed SKV 1161 form to the Swedish Tax Agency (Skatteverket).
You must submit the application before or within the first year of returning to Sweden or starting your job in Sweden.
You can submit your application online through Skatteverket’s website or by mailing your documents.
Step 4: Wait for Skatteverket’s Decision
Skatteverket will review your application and decide whether you qualify for expert tax relief.
They may contact you for further clarification or additional documents.
If approved, the expert tax relief will be applied to your income, reducing your tax rate for the eligible period.
Step 5: Understand the Duration and Benefits
Expert tax relief is typically granted for up to 5 years.
During this time, only 25% of your income will be subject to the regular Swedish income tax rate, while the remaining portion is taxed at a reduced rate.
Key Considerations
Salary: Your salary must meet a certain threshold to qualify for the program. The specific threshold may vary depending on your role and industry.
Horizons Role: While the application is the employee's responsibility, Horizons can support by providing supporting documents, such as your job offer and salary details.
Timing: Ensure that you apply early, before or within the first year of returning to Sweden or starting your Swedish job.
Documents: Keep all documentation up-to-date and provide accurate information, as Skatteverket will review everything carefully.
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