The Nordic countries have remained strong contracting countries. This is largely because the Danish, Norwegian and Swedish economies and currencies have remained strong throughout the recession, with their markets remaining outside of the Euro zone. The Finnish economy has proved less resilient over recent times and is not likely to improve unless, and until, labour market practices are reformed.

In the main markets of Norway, Sweden and Denmark it has always been very difficult to claim self-employed status for contract workers. There is a high acceptance of the benefits of the social security system and anyone rejecting them for self-employment tends to be viewed as an oddity.

At the same time, the tax authorities have been very proactive – even draconian – in collecting their taxes. The Swedes in particular have sought maximum press exposure for those accused of trying to mitigate their tax bills.

In this table I have set out what can be offered to contractors working in the aforementioned countries. These solutions are all available from AF if the contractor meets the eligibility criteria. (If the box is blank then this solution is not available.)

Solutions Denmark Finland Norway Sweden
Self-employment

Local taxes and social charges will be paid in Finland

AF will take care of all the registrations and de-registrations.

Local Employment

Contractor will be employed by an Access Financial Group company which will take care of contracting requirements, social security and income tax obligations.

Contractor will be employed by an Access Financial Group company which will take care of contracting requirements, social security and income tax obligations.

Contractor will be employed by an Access Financial Group company which will take care of contracting requirements, social security and income tax obligations.

Special Regime

Denmark offers a special tax regime to foreign workers who pay a flat tax of 31.92 % (including 8% social security contribution). The allowance is given to cover the additional expenses resulting from living in Denmark.

No special regime is allowed to the self- employed contractors.

Norway does not offer any regime for foreign workers; instead some allowances and special deductions are allowed which helps in reducing the overall tax liability.

Sweden offers a Special Regime, which is a tax allowance for foreign workers to cover the additional expenses resulting from living in Sweden.

It exempts 25% of the remuneration from Swedish income tax and social security contributions.

Personal Services Company (PSC) or One-Man Limited Company

We can register both the company and the employee/director, in Norway for income tax, social charges and corporation taxes.

A local payroll will be operated for the contractor in the work country.

We can register both the company and the employee/director in Norway for income tax, social charges and corporation taxes.

A local payroll will be operated for the contractor in the work country.

Hybrid Solution

The contractor will get similar benefits under this solution as if he would have set-up his own PSC. However, the main advantages of this solution over a standard PSC are:

  • No set-up cost
  • No corporation tax
  • No risk of creating permanent establishment
  • No obligation to file annual accounts, VAT returns, etc. which means less administration.

The contractor will get similar benefits under this solution as if he would have set-up his own PSC. However, the main advantages of this solution over a standard PSC are:

  • No set-up cost
  • No corporation tax
  • No risk of creating permanent establishment
  • No obligation to file annual accounts, VAT returns, etc. which means less administration.
Average net take-home pay

52-67%

65-75%

53-73%

49-69%

For further information on this important market, please get in contact and we will show you how we can help protect corporate clients, agencies and contractors while ensuring the highest possible legal retention for all contractors.

If you would like to find out more information or discuss specific benefits of each solution, please contact the Access Financial team on enquiries@accessfinancial.com

Please follow our LinkedIn Company page to get industry news and company information that will help answer any questions you may have. https://www.linkedin.com/company/access-financial/

Subscribe to our newsletter to get our blog posts direct to your inbox http://www.accessfinancial.com/