Work in Sweden
Welcome to Cool company, as an independent contractor working through in Sweden.
Need help getting started in Sweden’s northern neighbour? Read our guide “Work in Norway“.
How to work in Sweden with the help of Cool Company
Cool Company provide an Employed Umbrella payroll solution in Sweden, and we support contractors by processing payments, deducting taxes, and submitting these to the Swedish Tax authority. Along with this, we provide accident insurance, group life insurance and liability insurance for you during the assignment.
- We take care of client payments.
- We handle all tax deductions and social contributions.
- We issue a monthly paycheck to you.
- We will help set up contracts and provide personal support.
Salary calculator (in SEK)
Salary on your account
4 803 SEK
Pension
308 SEK
Total compensation
5 254 SEK
Your net salary
4 803 SEK
Pension
308 SEK
Taxes & social fees
4 289 SEK
Cool Company fee 5,98%
598 SEK
Mandatory steps:
- Ensure that you are entitled to work in Sweden
(more info under section 1). - Submit the proof of sent in application for coordination number or the final decision from the tax authorities to Cool Company (info@coolcompany.com)
- Apply for taxation document
(Less than 6 months SINK;
More than 6 months: Application for preliminary tax).
Submit this to Cool Company (info@coolcompany.com) - Book an appointment for manual identification at the tax office. Bring your passport, a copy of your employment agreement, and the reference number for your submitted tax application as described in Step 3 or 4. Submit these details to Cool Company at info@coolcompany.com.
- IF you are working or visiting construction sites you may need an ID06, check with your client (more info under section 4)
- Register to get access, before your first visit the client site
(see section 5).
Below you will find some information regarding being a contractor in Sweden.
1. Ensure your Work permit
Note: You do not need to apply for a work permit if you are a citizen of an EU country.
Firstly, to work legally in Sweden, you will need a valid work permit. The process of obtaining a work permit can vary depending on your nationality and the type of work you will be doing. We recommend that you visit the Swedish Migration Agency’s website for more information on how to apply for a work permit.
2. Apply for a Swedish Coordination number
If you don’t have a Swedish social security number or a coordination number, then you will need to obtain a Swedish coordination number. Coordination numbers are a way of identifying individuals who need to interact with Swedish public authorities or other parts of Swedish society but have never been listed in the Swedish Population Register. Coordination numbers are structured in a similar way to 10-digit personal identity numbers.
The Swedish Tax Agency is the public authority that reaches decisions about coordination numbers and issues them. Please note that salaries cannot be processed until you have obtained a Swedish Coordination number.
It can sometimes take a long time – up to eight weeks – for the Swedish Tax Agency to process these applications. In order to ensure that you can receive your salary as soon as possible, it is important to apply for coordination number in good time.
Disclaimer: If you move to Sweden and intend to live here for 12 months or more, you should register as a resident at the nearest office of the Swedish Tax Agency. Then you will instead receive a unique 10-digit personal identification number.
When you register for tax you apply for a coordination number in the same application (please see instructions below)
After submitting your online application, you must visit the Tax Office to identify yourself in person. This step only needs to be done once, ideally during the first week of your assignment in Sweden.
Please book an appointment at your closest tax office by clicking [https://ssc.nemoq.se/booking/booking/index/ssc].
Remember to bring your passport, a copy (digital or physical) of your employment contract, and a receipt of your submitted online tax application.
Important: A coordination number WILL NOT be issued without completing this step.
Please report once completed to your Cool Company contact person.
3. Taxation
If you live in another country and work in Sweden, you are subject to regular taxation in Sweden for income from work. Regular income tax in Sweden, is on an average rate of 30%. Cool Company Skandinavien AB can not be used in order for you to avoid paying taxes in Sweden.
While we are happy to provide general information about working and living in Sweden, we regret to inform you that we are unable to offer specific taxation advice. This is due to regulatory rules in Sweden that prohibit us from providing such advice without proper licensing and authorization.
The Special Income Tax for Non-Residents (SINK) is applicable if you are staying in Sweden for a total period of less than 6 months in a calendar year. It provides a flat tax rate of 25% on your income, regardless of how much you earn. However, if you stay in Sweden for an accumulated period of more than 6 months, you would normally be subject to regular Swedish income tax instead of SINK.
No Declaration Hassles: SINK taxation means you do not need to file a Swedish tax return, saving you time and paperwork.
Ideal for Short-Term Employment: Whether you’re on a temporary assignment or working part-time in Sweden, SINK simplifies taxation and makes it more efficient for non-residents.
The application form is here.
Once you have received this application back, submit document to info@coolcompany.com
SINK rates will only be applied upon approval from Skatteverket has been provided, until this time 30% tax rate will apply.
Use this form if you are not registered in Sweden but are staying in Sweden for a period of six months or longer and work here. The Swedish Tax Agency will not register a person from outside EU or EEA countries or Switzerland, a third country national, for work income unless he or she is permitted to work here. The application form is here.
Once you have received this application back, submit document to info@coolcompany.com.
Social security is 31.42% of the total timesheet value, which is mandatory to pay for when working in Sweden. You can pay for social security in your home country with an A1 form, which is applied for in your home country, and unfortunately not something that Cool Company can assist you with.
In cases where you hold a valid A1 certificate and the assignment does not exceed 24 months, no deductions for social contribution shall be made by Cool Company. Instead, you are responsible for paying the social contribution in your country of residence. In instances where you fail to pay the social contribution in your country of residence according to the A1 certificate, and the tax authorities in that country demand payment from Cool Company, then you will be obligated to pay the equivalent amount to Cool Company.
Please be aware that we can only apply social contribution offsets until the expiration date of your A1 certificate. Therefore, any salary disbursed after this date will have the regular social contributions deducted. To avoid this, it’s advisable to request an A1 form with a validity period extending beyond your anticipated last day of work, considering there might be a delay between your final working day and the salary disbursement. This procedure has been verified with our auditing firm and confirmed by the Swedish Taxation Authority.
Once you have received this application back, submit the document to info@coolcompany.com.
4. Submit ID06 application if you are working within construction
ID06 was launched by Byggföretagen (construction companies) in 2006. Since January 1st, 2016, it has been mandatory to use an electronic personnel ledger at almost all construction sites in Sweden.
To be able to apply for this you will need to
- Have a Swedish personal number or
- A Swedish Coordination number or
- A proof of sent in Coordination Number application.
Fees to process ID06 application:
- Application for ID06 – 750 sek
(charged through Cool Company) - Verification process through Sistec – 499 sek
(charged at Sistec office) - Delivery of printed card to Sistec – 500 sek
(charged at Sistec office)
Please apply here.
Note 1: For your ID06 card you need your passport number and a photo of you (head and shoulders on a plain background) and the proof you have submitted and application for a coordination number. It is important that you provide us with the same information as listed on your verification document (passport).
Note 2: Delivery address. Listed from fastest to slowest. Select either an address you have in Sweden (international shipping not possible) or Sistec Office in Sweden
For employees who do not have a Swedish social security number and a Swedish BankID, an ID scan is carried out at one of Sistec offices. This must be done in person in a physical meeting with one of the ID06 approved passport documents or National ID cards. After completing the ID scan, a personal account is created in the ID06 system and then the previously placed card order can be approved.
Please note that the card is printed only after the verification process has been completed by Sistec, thus you need to expect a few days between verification and when you receive the ID06-card. Cool Company Skandinavien AB is not part of the verification process for ID06, and you will have to book this verification yourself through Sistec website www.sistec.se yourself.
Ensure you have completed the verification at Sistec. If you have not already done so, you must personally identify yourself with a passport or national ID card at Sistec. This must be done prior at starting this process.
Create ID06 user account
After a successful verification process att Sistec office you will receive an email from Sistec. Please click Create user account and follow the instruction in the guided process. Once the registration is complete, you will be notified that your account has been created.
Guide to create account with passport or national ID here.
Approve order with passport or national ID
Go to the ID06 portal to approve the order here.
Guide How to approve order here.
Once the card has been delivered, you must log in to your ID06 account again and activate the card.
5. Claiming expenses
Depending on how you are taxed for your income, you have the right to deduct some expenses you incurred in your assignment, if they are directly linked to the service you are performing. Please note that the Swedish Taxation Authority is pretty strict in terms of what expenses you can deduct and which ones you cannot deduct.
If the expense is claimed through Cool Company, then the expense will act as a tax shield, and you will get approximately 50% back of the original amount once you receive the payment from us.
This expense value (read 50 % estimation) decreases if you have an approved A1 certificate and/or pay less tax through e.g., SINK.
Note that the purchase date on the receipt needs to be at the same time period as the assignment, meaning that you can’t claim old expenses as part of your assignment. For all expenses, Cool Company Skandinavien requires:
- A Receipt indicating what item it refers to and
- A proof of payment, and
- That the expense can be tied to a salary that is to be paid to you, meaning that you cannot claim expenses if you don’t have an ongoing assignment. You have to add the expenses in the system yourself
(see instructions in Appendix 1).
Claimable expenses with approved SINK decision (see section 3. Taxation) where the assignment is shorter than 6 months:
- Travel to and from Sweden and your home country: You can add expenses related to travel costs (such as public transportation, flight, and train tickets) to and from Sweden. The expense can only be claimed for the trip related to the beginning and end of your assignment, thus not on a commute basis.
- Hotel/hostel stay/house rental while working in Sweden: You can claim the accommodation part through us. Ensure that you receive a receipt and payment proof on this expense.
- Safety clothes related to the assignment.
- Expenses tied to the specific assignment of non-reusable character (such as screws and other onetime items etc).
Please note that all expenses will be manually reviewed by our economy department to ensure compliance.
Claimable expenses without approved SINK and instead being taxed under regular income tax law (a-tax):
You can still claim expenses; however, the guidelines state that you must claim these as deductions through your yearly Swedish tax return instead of through your employer (Cool Company Skandinavien AB). Here are two of the more common deductions that you can potentially claim:
- One journey to/from home per week.
- Increased living expenses – Deduct what you have paid for accommodation. If you cannot prove the amount, you may deduct SEK 120 per day for business trips within Sweden for the income year 2022 (tax return 2023). If you have moved your whole family to Sweden, during the assignment, the guideline is that you can deduct the accommodation cost of the housing in your home country.
Please note that we cannot offer tax advice, and it is essential to refer to Skatteverket official website for the latest information and guidelines.
Here is a link to the website related to common deductions in the tax return, and we encourage you to read it.
These deduction examples listed above are based on a person from an EU-country outside Sweden that has accommodation in both Sweden and their home country and is working in Sweden on a temporary basis (usually an assignment less than 2 years).
Scroll down for instructions on how you should add your expenses.
How to add an expense
1. Log into your Cool Company account
2. From the left menu, click on “Expenses”
3. Click on +ADD in the upper right-hand corner
4. Fill out the details of your expense
5. Attach your receipt
6. Click save
7. Email partner@coolcompany.com and inform us that you have uploaded an expense.
Skills in demand in Sweden
The Swedish Migration Agency together with the Employment Service and the Ministry of Foreign Affairs publishes a list of professions with a labour shortage each year. The industries and sectors with the highest demand are:
- Healthcare (doctors, midwifes, nurses)
- Transport (buses, delivery drives, and taxis)
- IT
- Engineering (different specializations)
What is it like to work in Sweden?
You will soon learn that a healthy work-life balance is important to Swedes. This can influence your work in Sweden as a contractor for you might have to consider your client’s flexible business days and hours. Also remember when dealing with a Swedish company that gender and class equality is very important in the workplace. Most businesses have a flat hierarchy; the dress code is often casual.
Contact us!
If you have any further questions, please contact Anna Lindqvist:
Anna.lindqvist@coolcompany.se
+46733589288
Working in Sweden – FAQ
1. Can I work in Sweden after Brexit?
Yes, you can work in Sweden after Brexit. However, you are most likely required to apply for a work permit in Sweden. For more information, we recommend the UK government’s “Guidance to Living in Sweden” as well as the official site of the Swedish Migration Agency.
2. Can I work in Sweden with a British passport?
Yes, you can work in Sweden with a British passport. You will probably need to apply for a Swedish work permit, though. For more information, please have a look at the UK government’s “Guidance to Living in Sweden” and the official site of the Swedish Migration Agency.
3. Do I need a visa to work as a contractor in Sweden?
If you want to work in Sweden coming from the UK, you may need a work visa. Please check all changes following Brexit in the official information provided by the Swedish authorities.
4. Can I work in Sweden without speaking Swedish?
Yes, you can find many English-speaking jobs in Sweden. However, having some basic knowledge of the language will help you professionally and socially.
5. What jobs are in demand in Sweden?
As a contractor you will discover that jobs in IT or healthcare are in high demand in Sweden. For more information see above (“English-speaking jobs in Sweden”).