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except most of it goes to tax, when you want to transfer money from your company account to personal. In case of Sweden, minimum %54 to pay salary to yourself
by mclightning 6y ago
except most of it goes to tax, when you want to transfer money from your company account to personal.
In case of Sweden, minimum %54 to pay salary to yourself from your contract/freelancing company. Then you pay %25 VAT when you buy anything. As an individual, you would pay a hefty %76 marginal tax in Sweden from that base earning.
That also explains why salaries are lower. Because there are hidden costs to employer.
- ptr 6y ago54% is maximum and if you have your own company you can optimize that. 76% marginal tax is incorrect. 25% VAT isn’t added on everything. Freelancing in Sweden is definitely a path for becoming wealthy.
- mclightning 6y agoI am including employment tax in that %54 figure, which is a cost as well. So %31 + %33, ends up being roughly %54-53 on the total. Then add VAT. I am running my own company, freelancing successfully for 2 years now. So I know these numbers from experience. Yes, you can optimize the %33 out of the %54. %33 is minimum you can get, up to 42K sek salary.