How can Sweden strengthen its competitiveness in attracting international research and development (R&D) talent? In 2025, the government proposed several updates to the country’s expert tax regime aimed at simplifying the rules, increasing predictability and more clearly targeting tax relief to individuals working in R&D.
The proposed changes were published in a government inquiry released on 15 January 2025. The inquiry assessed whether the existing framework could be improved to stimulate greater investment in R&D in Sweden. The expert tax regime is a central tool in this effort, designed to attract highly skilled foreign professionals to the Swedish labour market.
Although the updated rules were intended to apply as from 1 January 2026, they were not included in the government’s budget bill in autumn 2025 and therefore did not take effect. Importantly, the government has not indicated that the proposals have been withdrawn. As a result, the recommendations remain relevant and may still be implemented in the future.
Under the existing regime, qualifying foreign employees may benefit from tax relief under which only 75% of their salary is subject to Swedish income tax during their first seven years in Sweden. Employers benefit as well, as social security contributions are calculated on the same reduced tax base.
An employee may qualify for the expert tax regime under one of two criteria:
The inquiry recommended several measures to make the expert tax regime more targeted, predictable and easier to apply. Key proposed include
Overall, the proposed changes to the expert tax regime are favourable. Increasing the tax relief would bring Sweden closer to international norms for similar incentive regimes. Extending the application period and allowing Swedish citizens to apply would broaden access and likely increase utilisation of the regime.
The proposed clarification of the competence rule is also positive. Historically, this rule been difficult to interpret and has created uncertainty for both employers and employees. At the same time, the reduction of the salary threshold effective 1 January 2025 means that more key personnel and experts whose roles are not primarily related to R&D may still qualify for under the salary rule, provided they meet the remuneration requirement.
Removing the recruitment-difficulty requirement would further reduce the administrative burden, as this element has been challenging to substantiate in practice.
BDO continues to monitor legislative developments and discussions related to the proposed changes.
Caroline Lindqvist
Hanna Andersson
BDO in Sweden
The proposed changes were published in a government inquiry released on 15 January 2025. The inquiry assessed whether the existing framework could be improved to stimulate greater investment in R&D in Sweden. The expert tax regime is a central tool in this effort, designed to attract highly skilled foreign professionals to the Swedish labour market.
Although the updated rules were intended to apply as from 1 January 2026, they were not included in the government’s budget bill in autumn 2025 and therefore did not take effect. Importantly, the government has not indicated that the proposals have been withdrawn. As a result, the recommendations remain relevant and may still be implemented in the future.
Summary of Current Expert Tax Rules
Under the existing regime, qualifying foreign employees may benefit from tax relief under which only 75% of their salary is subject to Swedish income tax during their first seven years in Sweden. Employers benefit as well, as social security contributions are calculated on the same reduced tax base.An employee may qualify for the expert tax regime under one of two criteria:
- Salary rule: The monthly salary must exceed 1.5 times the price base amount (SEK 88,800 per month in 2026); or
- Competence rule: The individual must be an expert or researcher with specialist skills that are difficult to recruit within Sweden or must hold a strategic or senior position within the company (key personnel).
Proposed Changes
The inquiry recommended several measures to make the expert tax regime more targeted, predictable and easier to apply. Key proposed include
- Increasing the tax relief from 25% to 30%, meaning only 70% of gross remuneration would be taxable in Sweden.
- Narrowing and clarifying the competence rule so that tax relief would apply only to individuals whose work primarily relates to R&D and who hold a PhD or have relevant equivalent experience.
- Eliminating the requirement to demonstrate significant recruitment difficulties.
- Removing the possibility for experts and key personnel outside R&D to qualify for expert tax relief under the competence rule.
- Extending the application period from three to six months.
- Expanding the look-back period for prior residence from five to 10 years.
- Removing the restriction preventing Swedish citizens from applying for expert tax relief.
- Introducing a lifetime cap: an individual would only benefit from one seven‑year relief period in total, which would resume if the individual returns to Sweden after a period abroad.
- Adjusting the salary threshold to 1:1 income base amounts (SEK 91,74 in 2026) replacing the current price base amount reference.
BDO Perspective
Overall, the proposed changes to the expert tax regime are favourable. Increasing the tax relief would bring Sweden closer to international norms for similar incentive regimes. Extending the application period and allowing Swedish citizens to apply would broaden access and likely increase utilisation of the regime.The proposed clarification of the competence rule is also positive. Historically, this rule been difficult to interpret and has created uncertainty for both employers and employees. At the same time, the reduction of the salary threshold effective 1 January 2025 means that more key personnel and experts whose roles are not primarily related to R&D may still qualify for under the salary rule, provided they meet the remuneration requirement.
Removing the recruitment-difficulty requirement would further reduce the administrative burden, as this element has been challenging to substantiate in practice.
BDO continues to monitor legislative developments and discussions related to the proposed changes.
Caroline Lindqvist
Hanna Andersson
BDO in Sweden