job in Finland, living in Sweden

interleukin · Post by **interleukin** » Sun Jul 05, 2015 10:02 pm

Hi hi,

I´d like to get your opinions on the following scenario. A person (a Nordic) gets a job that is paid by a Finnish organisation/company, but that person has their family & life in Sweden and is thus not interested in living in Finland. The employer is totally fine with the person physically working in Sweden.

How does this work out with taxes and registration of domicile? The taxes should be paid to Vero, I guess, and the person is covered by KELA. But does the person have to be registered as living in Finland even if they are hardly ever there, or could they be registered as a resident of Sweden? Will Sweden accept this, or would they then also want a piece of those taxes? Or are you forced to officially reside in the country your salary comes from? How would this be affected by eg. a 90% Finnish and 10% Swedish salary?

Other things like where one could get resident matkakortit, things like phone & internet, banking, that should be easier I guess. Plus one would have to negotiate a salary that is high enough to compensate for fees involved in changing euro salary to Swedish crown money. Or is there some way to get around this using a bank that operates in both countries?

Anything else to consider? Things that would make this arrangement impossible or a very bad deal. Also unexpected positive things?

Asking for, ehh, a friend.
Grateful for your input!
/interleukin

**Sponsor:**

betelgeuse · Post by **betelgeuse** » Sun Jul 05, 2015 10:25 pm

interleukin wrote: I´d like to get your opinions on the following scenario. A person (a Nordic) gets a job that is paid by a Finnish organisation/company, but that person has their family & life in Sweden and is thus not interested in living in Finland. The employer is totally fine with the person physically working in Sweden.

How does this work out with taxes and registration of domicile? The taxes should be paid to Vero, I guess, and the person is covered by KELA.

You work in Sweden and have a home in Sweden so your tax residence is in Sweden.

http://www.finlex.fi/fi/sopimukset/sops ... idm1530448

You will be covered by the social security of Sweden. Your employer most likely would be required to register as an employer there.

interleukin wrote: But does the person have to be registered as living in Finland even if they are hardly ever there, or could they be registered as a resident of Sweden? Will Sweden accept this, or would they then also want a piece of those taxes? Or are you forced to officially reside in the country your salary comes from? How would this be affected by eg. a 90% Finnish and 10% Swedish salary?

You do not register in Finland since you do not live here.

interleukin wrote: Other things like where one could get resident matkakortit, things like phone & internet, banking, that should be easier I guess. Plus one would have to negotiate a salary that is high enough to compensate for fees involved in changing euro salary to Swedish crown money. Or is there some way to get around this using a bank that operates in both countries?

If you want to shield yourself from the currency risk, then you would make the employment contract in Swedish crowns or use derivates (I am not sure if the latter is available for such small sums).

interleukin wrote: Anything else to consider? Things that would make this arrangement impossible or a very bad deal. Also unexpected positive things?

A straightforward way to handle this would be to register as an entrepreneur in Sweden and just invoice the Finnish company. This likely has tax benefits as well.

tjawatts · Post by **tjawatts** » Sun Jul 05, 2015 10:43 pm

Unless you are in the borderlands then you are pretty certain to be tax resident in Sweden. Doesnt matter where your employer is based, it matters where you do your work.

I found this site useful when I was working in Denmark and having family in Finland (Had the pleasure of being partially liable for tax in both places...)

https://www.nordisketax.net/?l=eng

T

interleukin · Post by **interleukin** » Sun Jul 05, 2015 11:00 pm

Thanks for the replies! Looking at those links now.
I assumed the taxes would be paid wherever the salary is paid, but if not, then everything is easier.

betelgeuse · Post by **betelgeuse** » Mon Jul 06, 2015 5:02 am

interleukin wrote:Thanks for the replies! Looking at those links now.
I assumed the taxes would be paid wherever the salary is paid, but if not, then everything is easier.

If this was true, incorporating in low tax jurisdictions would be very lucrative.

interleukin · Post by **interleukin** » Mon Jul 06, 2015 7:03 am

Pensions are already a mess and I already have pension from both countries, so it will not change things.

tjawatts · Post by **tjawatts** » Tue Jul 07, 2015 8:56 pm

I dont think pensions between Nordic countries will be a problem at all. They have pretty tight links.

The earnings related pension you will get wherever you live.

T

betelgeuse · Post by **betelgeuse** » Tue Jul 07, 2015 10:55 pm

roger_roger wrote:
tjawatts wrote:I dont think pensions between Nordic countries will be a problem at all. They have pretty tight links.

The earnings related pension you will get wherever you live.

T
What if Sweden has Pension age of 62 and you can legally claim pension after that age and Finland has 85 years? Do you wait till you are 85 to collect Pension from Finland or due to tight links you get pension from Finland also at the age of 62 as resident of Sweden?

You wait until 85.

http://europa.eu/youreurope/citizens/wo ... dex_en.htm

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