Company Formation & Tax in Sweden
A competitive Nordic base — the aktiebolag, one of the region's lowest corporate rates, VAT, and the closely-held-company rules founders need to understand.
Sweden offers a flat corporate tax that's among the lowest in the Nordics, a transparent and digital tax administration, and full EU access. The headline rate is straightforward — but how owners extract profit is governed by some of the country's more intricate rules.
Choosing an entity
The standard vehicle is the AB (aktiebolag, private limited company), requiring a minimum share capital of SEK 25,000, fully paid before registration (a public AB requires SEK 500,000). Registration runs through Bolagsverket (the Companies Registration Office), often via the verksamt.se portal, which issues an organisationsnummer; the company then registers with Skatteverket for F-tax (F-skatt), VAT and employer status. Note that at least half the board must be EEA-resident, or the company must appoint a resident agent for service of process.
Corporate tax and VAT
| Tax | Rate |
|---|---|
| Corporate income tax | 20.6% |
| VAT (moms, standard) | 25% |
| VAT (reduced) | 12% (food, hotels) / 6% (books, transport) |
| Employer social contributions | ≈ 31.42% |
Corporate income tax is a flat 20.6%, below the OECD average and competitive within Europe. VAT (moms) is 25% standard, with reduced rates of 12% (food, hotels) and 6% (books, passenger transport); a temporary reduction to 6% on food runs from April 2026 to December 2027. The VAT registration threshold is SEK 120,000 (raised from SEK 80,000 in 2025). Employer social contributions add around 31.42% on top of gross wages.
Compliance
Companies file an annual report (årsredovisning) with Bolagsverket and a corporate tax return with Skatteverket, and submit VAT returns periodically. Sweden also offers a participation exemption on qualifying shareholdings and R&D-related relief on employer contributions.
Frequently asked questions
What is the corporate tax rate in Sweden?
A flat 20.6% — among the lowest in the Nordic region.
How much capital do I need for an AB?
SEK 25,000 for a private AB, fully paid before registration.
What is the Swedish VAT rate?
25% standard, with reduced rates of 12% and 6%; the registration threshold is SEK 120,000.
What are the 3:12 rules?
The framework that determines how owners of closely held companies are taxed on dividends versus salary; it was revised on 1 January 2026.
Official sources
- Bolagsverket (Companies Registration Office)
- Skatteverket (Swedish Tax Agency)
- Verksamt.se — business portal
This guide is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; the 3:12 rules and thresholds change. Confirm against Skatteverket, or with an advisor, before acting.
Set up your Swedish AB the right way.
ARM Management advises international founders on Swedish entity formation, the 3:12 owner-taxation rules and ongoing compliance, alongside wider EU structuring. Begin with a confidential conversation.