Permanent residence is a concept that might seem a bit blurry, and many are uncertain about what it really means. It is a continuous stay of six months or more in one country and those who have permanent residence here are fully taxable.

An example from the Swedish Tax Agency's view is that you are in Sweden for three months, then abroad for two, and then in Sweden three months again. This is perceived as permanent abode in Sweden.

However, if you are in Sweden for two months and then abroad for three, and then back in Sweden for two months it is not perceived as permanent abode according to the Swedish Tax Agency. This information is important to be aware of before entering other markets.

Another topic discussed was the Special income tax (SINK).
Special income tax should be paid by employees working in Sweden but do not reside here. The employment may not last longer than six months. The Special income tax is a final withholding tax levied at 25% of the income. You will then not be making declarations or tax deductions for the period.

Finally, they spoke about net pay and management of net wages.
It was described as a compensation model for oversea services where the employee is guaranteed the same net pay as in the home country regardless of the size (amount) of the tax in the new country.

For a guaranteed net salary, tax compensation is reported and taxed the same year as the revenue was earned.



                                                                                           Cecilia Helland