Employment & Payroll
GTS Nordic operates mainly in Sweden as an umbrella company, providing contractors and freelancers with all of the securities associated with employment whilst also simplifying their tax affairs and in-country registration. Enabling contractors and freelancers to pay tax through the Pay-As-You-Earn system and to receive the net retention – take home after taxes, social security costs, insurances etc. – directly into their personal bank account in country of residence if preferred.
We care about our freelancers and want them to have an enjoyable, compliant and rewarding contracting experience.
In Sweden compliant contracting can be done in different ways. Each set up is dependant on the contractual terms, length and personal circumstances and a fixed retention rate can only be guaranteed for contractors working less than 183 days in Sweden, where the SINK tax can be applied. Being on SINK tax net retention rate is around 60%. For longer contracts the Swedish Expert Taxation Scheme is the most optimal solution, with net retention rates of 50-55%. Contractors pay a fixed fee for the actual service provided as oppose to a percentage of the income earned.
Pre-calculation of retention rates
We are always pleased to explain the different scenarios and discuss the best possible set-up for you. Detailed pre-calculations can be provided upon request, enabling you to discuss with your local advisor/accountant before a final decision is made.
Payment of taxes and fees
Income taxes and social security contribution are reported and settled on a monthly basis in Sweden. As your employer GTS Nordic is responsible for reporting and settlement of taxes and social security contribution to the authorities and will be liable for any irregularity. In accordance with the tax treaty between Sweden and most countries, the income from Sweden will not be double taxed.
“I’m very pleased with the level of services I have received from GTS Nordic – I can fully recommend the umbrella services I have been offered ”
Jacque Martens, SAP BI consultant, Gent, Belgium
Do I need to pay income taxes from day one?
If your contracts is below 180 (and will not be extended) days and you received your remuneration from a non-Swedish entity, you normally do not need to pay incomes taxes and social security / national insurance in Sweden. However local registration is always required by the Authorities. However, give us a call, and we can advice you probably concerning a compliant set-up.
What is SINK tax?
SINK tax is a special tax scheme for non-Swedish persons working less than 180 days and receiving the remuneration from a Swedish entity. The SINK tax offers a reduced income tax rate of 20%. If the assignment is more than 180 days, you will be normal Swedish income taxed from day one.
Is expenses deductible?
Expenses in connection with housing costs, transportation etc., can be offset but need to be pre-approved by the Swedish Tax authorities before we can deduct then on the payslip.
What are your fees?
GTS Nordic operated with a fixed monthly fee – no matter size of salary – thoughout the Nordic countries. Depending on services requested the fee varies. Our standard monthly fee for the employed / umbrella solution is eg. EUR 512/month
What about double taxation?
Income taxes paid in Sweden can be – due to the double tax treaties between Sweden and most of the other countries – offset on the tax return in home country. Double taxation is therefore normally not a risk.
GTS has a team of dedicated specialists providing a high level of service, with focus on your unique needs.
We take care of all statutory reporting to Swedish authorities, so you will have one thing less to worry about. We provide and facilitate payroll in accordance with Swedish legislation – tailored to your preferred set-up and requirements.
In addition to the monthly payroll handling we are able to assist with all areas within payroll administration such as company registration, VAT, local registration and on-boarding of your employee(s). Some of our services include:
- work and residence permits
- general mobility services
- help-desk providing assistance with tax returns, opening of bank accounts etc.
“We want to let all our freelancers and contractors to feel at home when it comes to in-country registration and day-to-day handling of taxes etc. ”
Ulrika Winkler, Country Manager
Immigration is characterised by complicated rules. Our trained team of specialists provide unique support for partners undertaking overseas assignments.
We work closely with the Swedish Immigration Agency to ensure a single solution to your employee’s immigration requirements.
We are pleased to assist with:
- Work and residence permit
- Family residence permit
- GTS is Fast- track certified – the process takes 6-8 weeks, compared to 4-5 months without the Fast-track certification
- Mandatory insurance
Requirements for a Work Permit:
To qualify for a work permit, you must have received an official offer of employment from a Swedish employer. The job must also:
- have been advertised in the EU/EEA for at least ten days
- offer terms of employment that match those set by Swedish collective agreements or those that are customary within the occupation or industry
- pay a minimum monthly salary of SEK 13,000 before taxes.
- you must have the mandatory insurance coverage
- you must also hold a valid passport in your home country.
Did you know?
How long does the application process take?
Normally you should expect 6-8 weeks to receive the non EU-work permit. This short processing time is due to the fact, that GTS Nordic is fast-track certified by the Swedish Immigration Authorities.
What about Social Security?
All persons with an employed solution with GTS Nordic is covered by the Swedish Social Security coverage.
What are the typical cost for a work permit?
The typical cost is approx. EUR 1.750 including the application fee to the Swedish Immigration Authorities.
Can I bring my family?
Yes, it is possible to bring your family based on your Swedish employment contract. Please contact us for more specific information.
What are the typical living costs?
The answer depends on where in Sweden you are stationed, erequired living standard, will you bring your family etc. As an indication, the link can give you an idea.
We are able to assist you with various accommodation services. If you need initial accommodation, you can utilize one of the special agreements we have with different Hotel chains in the major cities in order to obtain reasonable rates.
If you require assistance with rental/ lease contracts we are furthermore able to assist you to secure you pay reasonable rates and terms according to local legislation incl. translation of contracts from Swedish to English.
General in-country services such as flight booking, airport pick-up, opening bank account, assistance in connection family reunion etc. can further more be offered direct by GTS Nordic or some of our preferred partners.
“…Chances are you can live here for years without learning a lick of Swedish. Swedes are widely rated as world number two at English as a second language…”