The Swedish tax system consists of a number of direct and indirect taxes and charges. The most important direct taxes are national and municipal income tax and national capital tax. The most important indirect taxes are VAT and excise duties on certain products, such as alcohol and tobacco. Almost all goods and services are subject to VAT and the rate of VAT is normally 25 per cent of the price.

Earnings below SEK 16 700 per year are tax free.

The majority of the income tax paid by natural persons goes to the municipalities. If your income exceeds SEK 306 000 (2006) you must also pay national income tax at 20% on the amount in excess of SEK 306 000. If your income exceeds SEK 460 600 you must pay 25% national tax on the amount in excess of SEK 460 600.
Municipal income tax is proportional and, depending on the municipality, is between 28 and 33%.

Certain assets, such as real estate, bank deposits, shares and bonds, are subject to tax on net wealth. Income tax is also paid on unemployment benefits, pensions and similar sources of income. Property tax is levied on those who own a house, holiday cottage or land.

Both natural and legal persons are obliged to file an income tax return each year.

Fact sheets on taxes in Sweden can be ordered from Skatteverket (the National Tax Board) in your country.

In English | Skatteverket 

Reproduction based on information from the European Communities, information may have been altered to apply to New Zealand citizens.