Employ in a foreign company
As an alternative to posting an employee to work in another country, you may want to offer employment with your company's foreign subsidiary, your foreign joint venture company or perhaps with a partner abroad. As these companies are foreign, it affects the employee's security and employment conditions.
The rules on posting do not apply to anyone employed by a foreign employer. Rules on working hours, annual leave, etc. may also differ from what Swedish rules say.
When the employee is employed by a foreign company, they are normally subject to the laws and regulations of that country. It is therefore important for the employee to find out how the country's social insurance and tax systems work.
It is also important for the employee to negotiate the terms and conditions of employment. Depending on the legal benefits available in the new country of employment, they may need to supplement their insurance, pension rights and so on.
Anyone planning to live abroad for at least a year should submit the form Notification – Moving abroad (SKV 7665) to the Swedish Tax Agency.
Form Notification – Moving abroad (SKV 7665) at the Swedish Tax Agency (in Swedish)
Tax liability
A Swedish citizen working abroad for a short period of time is taxed on the income in Sweden. If the work abroad lasts six months or longer, the income may be tax-free in Sweden under the six-month rule or the one-year rule.
The person working abroad must still submit a Swedish income tax return and include the income from their foreign employer in the Swedish return. Internal rules and tax treaties govern taxation. You can read more about working abroad for up to six months on the Swedish Tax Agency's website.
Six-month rule and one-year rule at the Swedish Tax Agency (in Swedish)
About short-term work abroad at the Swedish Tax Agency (in Swedish)
Social insurance
An employee can only be covered by one country's social insurance system, normally the insurance of the country of employment. There are exceptions within the EU/EEA. If a Swedish citizen is hired by a foreign employer to work abroad, they are generally covered by the social insurance system of the country of employment.
This means, among other things, that the employee stops earning a pension when they move from Sweden. The employee should therefore take this into account when negotiating the terms of employment, so that some compensation can be agreed. The employee should notify the Swedish Social Insurance Agency of the move before leaving.
To find out which country's social insurance the employee is covered by, contact the Swedish Social Insurance Agency.
What applies in the different EU countries – at Your Europe (in Swedish)
About working abroad at the Swedish Social Insurance Agency (in Swedish)
Contact the Swedish Social Insurance Agency (in Swedish)
Living abroad
Persons who are resident abroad for tax purposes and who are employed by a foreign legal entity are not covered by Swedish rules at all. This means that if an employee is a citizen of the country in which the workplace is located, they are subject to the laws and rules that apply in that country.
You can check what applies in your case through the Swedish Tax Agency's overview of international employment.
Go to the overview of international employment at the Swedish Tax Agency (in Swedish)