If you are planning to engage contractors who are not Swedish citizens, there are several things that you will need to check in order to ensure that they are working for you compliantly and legally. 

Work Permits 

Work permit requirements depend on whether the contractor is an EU citizen or not. EU citizens don’t usually need a work permit to work in Sweden, though they do need to apply for a residence permit after three months. 

If the freelancer is not an EU citizen, they will need a work permit. If the contractor does not have a limited company, they should be eligible to apply with your company (or an umbrella company) as the sponsor.  

Contractors who have a limited company need to apply for a self-employed residence permit. 

Types of Contractors 

There are three types of contractors, each with slightly different tax implications and/or permit requirements. These are: 

  • Freelancers – this is often the best option for work engagements of three months or less. You would pay the freelancer directly. 
  • Limited company – as stated above, if the contractor carries out the work through a limited company, they are likely to need a self-employed residence permit. The limited company will issue your company with an invoice for the work carried out. 
  • Umbrella companies – international contractors could use umbrella companies who will sponsor the contractor and handle tax withholding. 

Tax Statuses 

In order to stay compliant, contractors will need to be aware of any tax liabilities that they have in Sweden. Usually, foreign contractors won’t need to pay Swedish income tax if they stay for less than six months. 

In general, stays of over 183 days in a tax year will result in a tax residency and the contractor may be eligible to pay taxes and social security contributions. The amount they need to pay will depend on whether they are working as a freelancer, through an umbrella company or through a limited company and – of course – how much they earn. 

Finding Contractors from Outside Sweden 

Evolution can help you to find talented contractors to work on your projects. Simply contact us to let us know your requirements.  

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