US Expatriate Taxes can be a hassle, but it doesn’t have to be. Just like citizens of other countries living abroad, US expats can make life easier by using an expat tax services. Some expats become so frustrated with US expat taxes that they end up moving back to the US altogether. If you have made the decision to come to Sweden and are looking for an expat tax services provider then you need to know how to find the right one.
Currently, many expatriates are choosing Sweden as their new home country. As a rule, the citizens of Sweden to enjoy a high standard of living because there are a lot less bureaucracy and a lot more opportunity to do things the “fun” way. The liberalized culture of Sweden challenged the foreign mind on many issues including property rights, and the level of personal freedom that was available to them.
Many expatriates choose Sweden because of its willingness to present an attractive tax package to its citizens. One of the best things about Sweden being an expat friendly country is that the citizens enjoy many tax advantages that the residents of other countries don’t get. If you’re a US expat and you’re looking to relocate to Sweden, then there are many things that you should know. The first thing that you’ll want to learn is how to take advantage of Sweden’s tax benefits that you might not otherwise get.
One of the most important aspects of Sweden’s foreign tax laws is its foreign tax obligations. You will probably be happy to learn that their foreign tax obligations are notably low compared to other countries. Sweden is one of the few countries in the world that offer foreign earned exclusion and foreign housing exclusion. This means that if you earn income outside of the United States, you can exclude part or all of your income for tax purposes. If you’re a US expat and you’re looking to relocate to Sweden, then you should definitely take advantage of their foreign earned exclusion and foreign housing exclusion laws.
The second thing that you should know is that Sweden has a rather simple system when it comes to its foreign tax liability requirements. In general, all US citizens residing in Sweden have to file a common tax return. There are also separate Swedish tax returns for foreigners residing in the Scandinavian nation. Because these taxes are so easy to understand, and are required by law, most US expats are filing their taxes by themselves. The reason that they do this is so that they don’t inadvertently overlook any of the US expat tax liability provisions that they might be subject to if they had to file their taxes by themselves from the very beginning.
The last thing that you need to be aware of is the foreign tax credit that Sweden provides. The Swedish tax credit is unique because it actually provides an American citizen who owns property abroad with a tax break if that property is used for commercial purposes. Some of the benefits of the tax credit include an increase in the expat’s tax credit amount if that property is rented out. It’s also worth noting that the tax credit is only available for property owned on a temporary basis and not for long term exclusive ownership. So if you plan on investing in property in Sweden, you may want to consult with an expat attorney who may be able to provide you with additional information regarding the tax treatment of the property.