Moving to a new country can be daunting with many new things to learn, but it's important to make sure your taxes are in order to avoid any unpleasant surprises at the end of the year. Sweden makes it easy for taxpayers with pre-filled forms and several ways to file your taxes. Below are five tips to make filing your taxes in Sweden simpler.
1. Get organized
It may sound obvious but before you do anything, create a system to keep your paperwork and records in order. Set up files for important documents with electronic versions of everything and create a system to record additional income and expenses, whether you use a simple spreadsheet or accounting software. If you are someone who dislikes doing this, it might be worth it to find an accountant or service to help you navigate Swedish tax and accounting rules, particularly if you also pay taxes in your home country. Even if you do hire an accountant, keeping your records organized will make the process easier.
2. Who needs to file
People living in Sweden for all or part of the tax year need to file a return.
3. When to file taxes
The annual filing deadline for taxes in Sweden is normally in May. In 2023 the last day of submission is the May 2nd. However, any unpaid taxes from the end of the year must be paid by February 13th, as interest is payable starting that date if the unpaid tax bill exceeds 30,000 SEK. If you are self-employed, estimated tax payments are due on the 12th of every month.
4. How to file
You will receive a pre-filled tax form based on your salary and other information which the government gets automatically through your personal ID number or personnummer. If you have additional income items or deductions, you will need to add those before you file your return. The Swedish tax agency, Skatteverket, makes it easy with multiple ways to file your tax return. Tax returns can be filed via text message, phone call, paper copy sent by post, the e-service (which is only in Swedish), or the Skatteverket app (also only in Swedish).
5. Deductions for homeowners
For people who own their residence, 30% of the mortgage interest is deductible in Sweden. Homeowners in Sweden can also deduct some of the costs of cleaning or household work, with the RUT deduction, and repair and maintenance work, with the ROT deduction. For RUT work, 50% of the labor is deductible with a ceiling of 25,000 SEK for people under 65 and up to 50,000 SEK for people 65 and older. For ROT work, 30% of the labor costs are deductible up to 50,000 SEK. Please note that the work must be invoiced and paid during the tax year and that the person who performs the labor cannot be related to the person paying for the work for it to be deductible. In addition, if you are self-employed or if your employer does not provide an office for you, a deduction may be taken for a home office. Simply calculate the portion of your residence that is a designated workspace to calculate the percentage of utilities which can be deducted, as well as any repairs performed in the designated work area, though mortgage interest is not included.
If you get organized, filing your taxes in Sweden need not be a hassle, with multiple options available for filing your taxes. For more information, please read here.