Sweden is a great destination for freelancers, offering excellent work-life balance and a supportive business environment. Here's how you can establish yourself as a freelancer in this Nordic country.
*Please be aware that we do not update this information in real time, so you should verify that the law has not changed recently.
Sole Proprietor (Enskild Firma):
No minimum capital requirement.
Personal liability for business debts.
Register your business with:
Swedish Companies Registration Office (Bolagsverket) to secure your business name.
Swedish Tax Office (Skatteverket) for tax obligations and VAT registration if applicable.
Limited Liability Company (AB - Aktiebolag):
Minimum capital requirement: 25,000 SEK.
Offers limited personal liability.
Register your LLC with Bolagsverket and Skatteverket.
As the owner, you’re classified as an employee and must pay yourself a salary.
Income Tax:
National income tax: 0% or 20%, depending on income level.
Municipal income tax: Flat rate of 32%.
Social security tax: 31.42% of taxable income.
VAT (Value-Added Tax):
Standard VAT rate: 25%.
Reduced rates: 0%, 6%, or 12% for specific goods and services.
VAT registration is mandatory if your turnover exceeds 30,000 SEK annually.
VAT deductions are available for business-related expenses.
Deductions:
Business-related expenses such as office supplies, utilities, and software can be deducted.
VAT collected is not taxed but must be paid to Skatteverket.
Sweden has strict rules for invoicing to ensure VAT compliance. Invoices must include:
Sequential invoice number.
Your business VAT number.
Invoice issue date.
Description of goods/services, quantity, and price.
VAT rate and amount.
Gross invoice amount.
Buyer and seller contact details.
Invoices must be retained for seven years, either in paper or electronic form. Simplified invoices may be used for transactions under 4,000 SEK.
Develop a Business Plan:
Outline your services, pricing, marketing strategy, and budget.
Obtain Residence Permit:
Non-EU citizens must apply through the Swedish Migration Agency or a Swedish embassy in their home country.
Register Your Business Name:
Secure your business name with Bolagsverket.
Tax and VAT Registration:
Register with Skatteverket for tax purposes. Obtain a VAT number if needed.
Open a Business Bank Account:
Establish a dedicated business account with a Swedish bank for efficient financial management.
EU/EEA Citizens:
Freelancing is straightforward; no residence permit is required, but you must register your business.
Non-EU Citizens:
Requires a residence permit and a valid visa. A clear business plan and financial stability are essential to support your application.
Sweden’s straightforward process and supportive framework make it an excellent choice for freelancers looking to thrive professionally and personally.