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Since January 1, 2024, the law has been amended, and the duration for the expert tax relief, has been extended to 7 years. A decision from the The Taxation of Research Workers Board is required for the tax relief to apply.
The researcher tax entails that only 75% of salary and benefits are taxable. Expenses for moving to and from Sweden, two home trips per year, as well as costs for children's education in primary and secondary school, are treated as tax-free reimbursements.
Who does the expert tax relief apply to?
The expert tax relief is intended for foreign experts, researchers, and other key personnel. Some of the basic requirements for expert tax relief include that the employee must neither be a Swedish citizen nor have lived in Sweden at any time during the five calendar years preceding the year when the work begins.
There are two different paths to qualify for tax relief:
- Compensation Level – Foreign individuals reaching a total compensation level per month exceeding twice the price base amount. The price base amount for 2024 is 57,300 SEK.
- Competence Level – Foreign individuals with qualified tasks at a level of competence that makes it difficult to recruit within the country. Moreover, key persons in executive positions are also considered to meet the requirement for applying for the expert tax relief.
Extension of tax relief
As of January 1, 2024, the law changed, and the period for the expert tax relief was extended from 5 to 7 years. If the employee arrived to Sweden after March 31, 2023, and received a valid decision in the same year, it applies for 5 years from the arrival date. One has the right to apply for an extended period up to 7 years. The application for an extension must be submitted to the Researcher Tax Board by March 31, 2024. The decision will, from 2024, be valid for 7 years from the date of arrival in Sweden.
Applying for Researcher Tax
To qualify for the researcher tax, a decision from The Taxation of Research Workers Board is required, which one should apply for well in advance of arriving in Sweden. Applications can be made by employees, employers, or partners. For instance, at Azets, we offer this service to existing clients.
If you are a client with Azets, we can handle new applications as well as extensions for The Taxation of Research Workers Board for you. Please contact us, and we will gladly assist you through the entire process.
Do you, as an employer, have any questions about the rules for foreign personnel? Contact us at Azets. We are experts in payroll administration, accounting, and HR, and offer consultancy services to businesses.
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