Swedish tax relief for foreign key personnel – new salary threshold

A new income year means a new monthly salary threshold, at least SEK 88,801, for foreign nationals to qualify for tax relief in Sweden. As in previous years, it is also possible to obtain tax relief on grounds other than the salary level.

General 

A foreign national who comes to Sweden to work for a Swedish employer may obtain tax relief based on the salary level or on the nature of their duties and expertise.

Those applying for tax relief on the basis of the compensation level must, for the 2026 income year, have a monthly salary of at least SEK 88,801, which corresponds to 1.5 times the price base amount for 2026 of SEK 59,200. The salary, including taxable benefits, must reach this amount every month. Note that variable compensation and benefits that do not amount to a fixed sum each month, such as a fuel benefit, cannot be counted.

Those who do not meet the compensation-level requirement can apply for tax relief as an “expert,” “researcher,” or “other key person.” To qualify as an “expert,” the employee must have specialist duties with such a focus or such a level of competence that it entails significant difficulties to recruit within Sweden. There must be a high level of specialization or unusual focus, preferably in a technically advanced or knowledge-intensive field. When applying on this ground, it is very important to provide a detailed description clearly setting out the employee’s duties and the requirements for performing them.

To qualify as “other key person,” the employee must have executive/management duties, for example as a Chief Executive Officer, or be a “specialist” in a particular area within the company (the work must then be critical to the entire company). The business must also be profit-driven; thus, it cannot involve a public employer unless the activity is conducted on a for-profit basis. When applying as a “specialist,” it is likewise important to describe in detail the employee’s duties, position, and significance to the company.

To qualify as a “researcher,” the employee must have qualified research or development duties with such a focus or level of competence that it entails significant difficulties to recruit within Sweden. The research must be independent and have been conducted at a certain level for at least 1–2 years after the PhD.

What does the tax relief entail?

The tax relief means that:

• 25 percent of cash remuneration and benefits is exempt from taxation and from the basis for Swedish employer social security contributions.

• Costs for school fees for children’s education in primary school, upper secondary school, or equivalent are fully tax-free.

• Costs for two trips home per year for the employee and the family are fully tax-free.

• Costs for moving to and from Sweden are fully tax-free.

The tax relief applies for a maximum of seven years from the employee’s first day of presence in Sweden.

What other formal requirements must be met?

• The employee may not be a Swedish citizen.

• The employee must not have lived in or had their habitual residence in Sweden at any time during the five calendar years preceding the year in which work in Sweden begins.

• At the time of application, the intention must be that the employee’s stay in Sweden will last no more than seven years.

• The employer must be resident in Sweden or be a foreign company with a permanent establishment in Sweden.

• The application must reach the Forskarskattenämnden (the Taxation of Research Workers Board) no later than three months after work in Sweden has commenced. The application may be submitted by either the employer or the employee.

Other

At PwC, we have specialists who can assist with everything related to the tax relief, for example assessing whether the requirements are met and preparing the application.