Extension of the time period for foreign expert tax

As we have previously reported on, the Swedish government presented its Budget Bill for 2024 (prop. 2023/24:1) on 20 September 2023 (see the article here). The Budget Bill includes, among other things, a proposal to extend the time period for which a business may apply for so-called foreign expert tax relief.

The purpose of the expert tax relief is to strengthen Sweden’s international competitiveness and increase the incentive for international companies to choose Sweden for new establishments, and national companies’ ability to locate and retain foreign experts with specific competence. In short, the expert tax relief means that 25% of income may, after approval from the Swedish Taxation of Research Workers Board, be exempt from tax. To further enhance the competitiveness of the Swedish rules, it is therefore proposed that the expert tax relief should be extended to apply for a maximum of seven years, starting from the day the stay in Sweden commence, replacing the current maximum of five years. The relief should apply where the intended stay duration in Sweden is a maximum of seven years.

The government will present a final proposal later in 2023, with changes proposed to enter into force on 1 January 2024 and apply on stays in Sweden that has commenced after 31 March 2023.