Staying informed on ever changing Swedish and European Union (EU) business regulations will help keep your foreign-owned business in Sweden thriving. Leinonen Sweden keeps tabs on the most recent news and developments in Swedish accounting, tax and payroll, so you can focus on successfully expanding your cross-border business.
June 2025 brings with it a new EU common system for business information, and the Swedish Tax Agency has provided useful clarifications on the six-month and one-year rules. New General Data Protection Regulation (GDPR) reliefs could also be around the corner for small to medium enterprises (SMEs). In this article, our experts explain the basics you need to know.
3 Essential Updates for Foreign-owned Businesses in Sweden
1. Common EU System for Business Information
Business registers in the EU must now exchange certain business information with each other using the Business Register Interconnection System (BRIS). This is a new common electronic system accessible across the EU and European Economic Area (EEA) – a cooperation between the EU, Iceland, Norway and Liechtenstein. The BRIS enables businesses, authorities, and the public to enjoy a more transparent and accurate picture of EU and EAA-wide company details.
Information on foreign branches and cross-border mergers of companies must be electronically transmitted using this system. Since May 15, the Swedish Companies Registration Office makes a note in the Companies Register when a Swedish limited liability company has a registered branch in another EU or EEA state.
2. Clarification Offerred for Six-month Rule
In Sweden, a person with unlimited tax liability is not taxed for income earned abroad, providing they meet the conditions of the six-month or one-year rule. While an employment and stay abroad must last for at least six months or one year (depending on the rule), shorter breaks equivalent to six days per full month (or 72 days during the employment year) can be taken without the foreign employment being interrupted.
On May 19, the Swedish Tax Agency offered a clarification, stating that if an employment and stay abroad totals seven and a half months, the employee may stay in Sweden for 45 days on a vacation, service assignment (or similar) without breaking the employment according to the six-month rule.
3. Proposed GDPR Reliefs for Larger SMEs
Proposed simplifications to GDPR were discussed in a meeting between protection authority representatives and the European Data Protection Board (EDPB) at the beginning of June. Currently, SMEs with fewer than 250 employees are not obligated to keep records of personal data processing.
The European Commission has recently proposed that this exemption should be extended to companies with fewer than 750 employees, up from an initial proposal of 500 in May. While the proposal was discussed in this recent meeting, the EDPB and European Data Protection Supervisor (EDPS) are yet to come to a final decision. We will keep you updated on any developments to this proposal that could simplify data protection processes for your foreign-owned business in Sweden.
Stay Compliant and Informed with Leinonen Sweden
Keeping up to date on everything from GDPR to tax and accounting in Sweden can be demanding, but it is absolutely vital for your foreign-owned business’ success. Leinonen Sweden will stay informed on every accounting, tax, and payroll change affecting your company. For over a decade, our specialists have been trusted as expert advisors to foreign-owned businesses in Sweden.
We provide high-quality and finely tailored solutions, because no two enterprises are the same. With our personalised and highly confidential support, you will be better equipped to reduce costs, plan effectively, and run your business smoothly and in line with the latest regulations. In the meantime, you can focus on building and expanding your company, free from headaches, misunderstandings, and penalties.
Read our previous articles to get informed on more recent changes to tax, payroll and accounting in Sweden, then contact us to speak to an experienced accounting consultant today.
