Post an employee to work abroad
As a Swedish employer, when you post an employee to work in another country, different rules apply to taxes, the working environment and social insurance depending on the country to which the employee is posted and the length of time the employee is away.
An employee may need to be on site at one of your customers in another country to work for a certain period of time. Or you may need to send an experienced employee for a new establishment abroad.
The posted worker may see working abroad as an adventure, but the adjustment process can be difficult. Even if they have a good knowledge of their own organisation, the new culture requires adjustment. Some individuals adapt quickly, while others experience culture clashes. Try to prepare the employee well in advance, for example by taking a course in the culture of the other country.
Tax liability
An employee who is posted to work in another country may, in certain cases, be exempt from paying tax in Sweden on the income that they earn abroad. Whether the income is taxed in Sweden or in the country of work, it should normally be included in the Swedish income tax return.
Check what applies to you and your employees in the Swedish Tax Agency's overview of international employment.
About international employment at the Swedish Tax Agency (in Swedish)
Abroad for less than six months
When you as a Swedish employer send one of your employees to work abroad and the employee stays there for less than six months, the income is normally not taxable in the country of work. However, the income is taxable in Sweden and you should check with the tax authorities in the country of employment whether the employee is liable for tax there.
If the employee has paid tax in the country of work, they can claim the foreign tax as a credit on their Swedish income tax return to avoid double taxation.
Your employee can request a deduction of foreign tax on the form Settlement of foreign tax – Individuals (SKV 2703). In some cases, it may be sufficient to request a deduction under “Other information” in the income tax return.
About short-term work abroad at the Swedish Tax Agency (in Swedish)
Form – Settlement of foreign tax (SKV 2703) at the Swedish Tax Agency (in Swedish)
Abroad at least six months
If the employee has unlimited tax liability in Sweden and has worked abroad for at least six months and at most one year, the six-month rule may apply. For the rule to apply, the income must be taxed in the country of work and the employee must be able to show how much tax has been paid, for example by means of a receipt or certificate.
The six-month rule means that income from working abroad is tax-free in Sweden. It does not matter whether the salary is paid in Sweden or abroad.
If the employee has a decision from the Swedish Tax Agency stating that they are covered by the six-month rule, you as an employer do not have to make tax deductions. The employee applies for tax exemption in Sweden on the form Application for change of calculation – work abroad (SKV 4303).
Form – Application for change of calculation (SKV 4303) at the Swedish Tax Agency (in Swedish)
Abroad for more than one year
If an employee moves abroad and is going to be away for a year or more, the employee should not normally be registered in the Swedish population register. If the employee has a decision from the Swedish Tax Agency stating that they are covered by the one-year rule, you as an employer do not have to make tax deductions. The employee applies for tax exemption in Sweden on the form Application for change of calculation – work abroad (SKV 4303).
Also read the Swedish Tax Agency's information on moving abroad.
If you are an employer, the Swedish Tax Agency also offers the brochure “Ska du betala skatt i Sverige när du arbetar utomlands?” [Should you pay tax in Sweden when working abroad?].
Form – Application for change of calculation (SKV 4303) at the Swedish Tax Agency (in Swedish)
Swedish Tax Agency's information on moving abroad (in Swedish)
Social insurance
The employee can only be covered by one country's social insurance system, normally the insurance of the country of employment. This means that your employees may be entitled to social insurance benefits in the country in which they work. But there are exceptions.
Posting in an EU/EEA country or Switzerland
If you are temporarily posted by your employer to work in an EU/EEA country or Switzerland, you will still be covered by Swedish social insurance if you live abroad for a maximum of two years.
In order to remain insured in Sweden, it is required, among other things, that the work abroad is temporary and that the employee is directly employed by the person ordering the posting. However, it is possible to apply to the Swedish Social Insurance Agency for an extension and exemption to be able to have employees posted for a longer period than two years. Contact the Swedish Social Insurance Agency's Customer Centre for more information.
If the employee has a statement of applicable legislation, it means that you as an employer do not have to pay employer's contributions in the temporary country of work. It is the Swedish rules that instead apply. As an employer, you and the employee must fill in and submit the form Request for A1/E101 certificate or convention certificate to the Swedish Social Insurance Agency when you post the employee.
More information on posting to an EU/EEA country or Switzerland can be found on the Swedish Social Insurance Agency's website.
Contact the Swedish Social Insurance Agency's Customer Centre (in Swedish)
Posting to other countries
An employee who is posted to a country outside the EU/EEA or Switzerland continues to be covered by Swedish social insurance, provided that the employee will not be living or working abroad for more than one year. For some countries, including the USA, Croatia and Morocco, there are special rules on posting. For these countries, the posting period may be extended in certain cases.
About posting to other countries at the Swedish Social Insurance Agency (in Swedish)
Data on earnings and tax deductions
When you have posted employees, the taxation and reporting of employer's contributions may look slightly different depending on the length of the posting and the country in which the employee works. Whether or not you have had to pay employer's contributions and make deductions for preliminary tax, you will normally have to submit data on earnings and tax deductions. This is because in Sweden we may have an agreement on the exchange of data on earnings and tax deductions
Data on earnings and tax deductions for working abroad at the Swedish Tax Agency (in Swedish)