A Guide to Filing US Expat Taxes from Sweden

Living in Sweden as a US expat comes with stunning nature, a high quality of life, and a work-life balance many dream of. Whether you moved for love, work, or adventure, you still have to deal with US taxes—yes, even abroad! Navigating tax rules in two countries can feel overwhelming, but with the right information, it doesn’t have to be stressful. This US-Sweden Expat Tax guide will help you understand your US tax obligations while living in Sweden, so you can stay compliant without the headache. Let’s break it down step by step and make tax season a little easier!

Who Needs to File US Expat Taxes?

US Tax Deadlines

Swedish Immigration & Tax Compliance

US-Sweden Tax Agreements

US Tax Benefits for Expats in Sweden

Self-Employment in Sweden

Investing in Sweden as a US Expat

Swedish Retirement

Tax Compliance Solved with MyExpatTaxes

Plan For Your Future with MyExpatInvest

Who Needs to File US Expat Taxes?

If you’re a US citizen or green card holder and your income meets the filing threshold, you’ll need to file a US tax return—even if you live in Sweden. The US taxes based on citizenship, not residency, so moving abroad doesn’t get you off the hook. You might also need to file extra forms for foreign bank accounts or investments.

The IRS filing thresholds vary according to your filing status. In 2025, you’ll need to file your 2024 US taxes:

Filing Status	Income Threshold
Single	$14,600
Married Filing Jointly	$29,200
Married Filing Separately	$5
Head of Household	$21,900
Qualifying Widow(er)	$29,200
Self-Employed	$400

Additional Reporting Requirements

If the total value of your foreign bank accounts combined exceeds $10,000 at any time during the year, you must file an FBAR (Foreign Bank Account Report) electronically with the US Treasury Department. This includes bank accounts, investment accounts, and even pension funds held in Sweden.

FATCA (Foreign Account Tax Compliance Act) requires expats to report foreign financial accounts and assets if they exceed certain thresholds, starting at $200,000 for single filers.

With MyExpatTaxes, FBARs and FATCA filing are included in every package to ensure you have all filing requirements covered.

US Tax Deadlines

As a US expat in Sweden, your tax deadlines are slightly different from those in the US. You get an automatic extension until June 16th, but if you need more time, you can request an extension.

April 15th	Tax payment deadline
June 16th	Automatic filing extension
October 15th	Extended filing deadline
October 15th	FBAR Deadline for Expats
December 15th	Deadline for Expats if you Filed a Second Extension

First Time Filer? Catch Up with the Streamlined Procedure

If you just realized that you should have been filing US taxes from abroad, there’s no need to panic. Although failing to file would normally incur hefty fines, there is a solution to becoming IRS -compliant without the price tag. The Streamlined Procedure is an amnesty program that allows you to catch up by submitting just three years of tax returns and, if required, six years of FBARs. Provided the failure to file wasn’t willful (for example, you weren’t aware of the need to file), you won’t face any fines. However, it’s essential to make use of the Streamlined Procedure before the IRS contacts you. Otherwise, they could enforce penalties for failure to file and failure to pay penalties.

Swedish Immigration & Tax Compliance

Securing Your Swedish Visa

There are a variety of visas available to US expats according to the purpose of your stay, including:

• Tourist Visa: US citizens can enter Sweden visa-free for short stays up to 90 days within a 180-day period for tourism or business purposes.
• Student Visa: If you’ve been accepted into a Swedish educational institution, you can apply for a residence permit for studies, allowing you to reside in Sweden during your academic program.
• Work Permit: Securing employment with a Swedish company enables you to apply for a work permit, typically valid for one to two years and renewable.
• Self-Employment Visa: Entrepreneurs and freelancers planning to operate in Sweden can apply for a self-employment visa. This permit requires demonstrating sufficient funds to support yourself and a viable business plan involving Swedish clients.
• Family Visa: Family members of individuals residing in Sweden can apply for a residence permit to join their relatives, subject to meeting eligibility criteria.

Starting in late 2025, US travelers visiting Sweden and other Schengen countries for short stays will need European Travel Information and Authorization System (ETIAS) authorization. This is not a visa but an online travel authorization valid for three years or until your passport expires.

For the most accurate and up-to-date information, consult the US State Department Sweden Travel Information page.

Tax Compliance in Sweden for US Expats

As a US expat living in Sweden, you may be required to file a Swedish tax return depending on your residency status and income sources. Sweden considers you a tax resident if you have a permanent home in the country, continuously stay for more than 6 months, have Swedish employment, or maintain close personal ties to Sweden, such as family or property.

Tax residents need to report their worldwide income, while non-residents are typically taxed only on Swedish-source income. Individuals living in Sweden for less than six months may still have a limited tax liability, depending on income sources within Sweden, such as wages from a Swedish employer or income from Swedish property. Non-residents earning income in Sweden can apply for the SINK (Special Income Tax for Non-Residents) simplified tax scheme. Note that you may be considered tax resident in Sweden for up to 10 years unless you can demonstrate that you have cut ties with the country.

In Sweden, taxable income includes employment income and benefits, self-employment income, pensions, rental income, and capital gains from stocks and property. Prepare for a municipal tax of 32% and, on income exceeding SEK 625,800, an additional national tax of 20% (2025). Capital gains and investment income are normally taxed at 30%.

The Swedish tax year follows the calendar year, and individual tax returns are generally due by May 2. If you’re filing digitally without any modifications, you can submit as early as April 2 and you can request an extension.

US-Sweden Expat Tax Agreements

The US-Sweden Tax Treaty aims to prevent double taxation for individuals earning income in both countries. The treaty includes a “saving clause,” permitting the US to tax its citizens as if the treaty were not in effect. However, the IRS has tax benefits that allow US expats to credit taxes paid to Sweden against their US tax obligations, which can significantly greatly reduce or eliminate your liability.

US-Sweden Totalization Agreement

The Totalization Agreement between the US and Sweden prevents dual social security taxation and ensures workers contribute only to one system at a time. US employees sent to Sweden for five years or less remain covered under US Social Security and are exempt from Swedish contributions, and vice versa for Swedish workers in the US. Self-employed individuals generally contribute to the system of their country of residence. The agreement eliminates double social security taxation while allowing you to combine coverage periods for time working in both countries to qualify for benefits.

US Tax Benefits for Expats in Sweden

Foreign Tax Credit (FTC)

The Foreign Tax Credit helps US expats in Sweden avoid double taxation by allowing them to offset taxes paid to Sweden against their US tax liability. With the FTC, you can claim a dollar-for-dollar credit for income taxes paid to the Swedish government. As Sweden’s tax rate is relatively high, the FTC could significantly reduce or eliminate your US tax bill, depending on the amount of Swedish taxes paid. Any excess can be carried forward for 10 years or back for one year. However, the credit cannot exceed the amount of US tax owed on the same income.

You can use the FTC for all types of foreign income, not just wages. This includes rental income, interest, and dividends, but you must apply foreign taxes to the same type of income. For example, foreign taxes paid on rental income can only offset US taxes on foreign passive income, not wages.

To claim the credit, you‘ll file IRS Form 1116 along with your US tax return.

Foreign Earned Income Exclusion (FEIE)

The Foreign Earned Income Exclusion allows US expats in Sweden to exclude up to $126,500 of foreign-earned income from US taxation. To qualify, you’ll need to pass either the Physical Presence Test (living outside the US for 330 days in a 12-month period) or the Bona Fide Residence Test (by being a resident of Sweden for an entire tax year). The FEIE applies only to earned income, such as wages or self-employment income, and does not cover passive income like rental income, dividends, or interest.

You‘ll file IRS Form 2555 along with your US tax return to claim the FEIE.

Foreign Housing Exclusion

The Foreign Housing Exclusion allows US expats in Sweden to deduct certain housing costs, such as rent, utilities, and some necessary expenses, from their taxable income. However, mortgage payments and home purchases do not qualify. This exclusion is especially useful in high-cost cities like Stockholm. Are you eligible for the Foreign Housing Exclusion? If you qualify for the FEIE, the answer is yes!

Child Tax Credit

The Child Tax Credit can help US expats in Sweden reduce their US tax bill by up to $2,000 per child under 17. The Additional Child Tax Credit is the refundable portion of the Child Tax Credit, which can provide up to $1,700 per child as a refund.

To claim the Additional Credit, you must have at least $2,500 in taxable earned income, which can be a problem if you use the Foreign Earned Income Exclusion (FEIE) to exclude all your income. Many expats parents use the Foreign Tax Credit instead of the FEIE to be able to claim the Additional Child Tax Credit.

You can claim the Child Tax Credit using Form 8812 when filing your US tax return.

Which Benefits Are The Best For Me?

The best tax strategy for US expats in Sweden depends on income type and amount. Since Sweden has higher income tax rates than the US, most expats can use the FTC to fully offset their US tax liability. Expats who earn above the FEIE limit can also use the FTC to offset any remaining US tax liability.

At MyExpatTaxes, our software will automatically apply the greatest benefits for your individual tax situation. Simply fill in our questionnaire and the right forms will be generated to minimize your US tax liability and maximize your benefits while keeping you IRS compliant.

Self Employment in Sweden for US Expats

As a US expat, you’ll need to report self-employment earnings to the IRS for self-employment income of $400 and over. Self-employment earnings over this amount are taxed at a rate of 15.3%.

In Sweden, self-employed individuals are required to contribute 28.97% of their income to the Swedish social security system (as of 2025). This contribution grants access to Sweden’s comprehensive social benefits, including healthcare and pensions. Thanks to the US-Sweden Totalization Agreement, you won’t pay social security contributions twice for the same earnings. Under the agreement, self-employed US expats in Sweden are typically subject only to Swedish social security taxes and are exempt from US self-employment tax.

Investing in Sweden as a US Expat

Investing in Sweden as a US expat can be a great way to grow your wealth while enjoying the country’s stable economy and high quality of life. Whether you’re interested in stocks, property, or retirement savings, Sweden offers plenty of opportunities. Common Investment Options for US Expats in Sweden include:

Retirement Accounts (IRAs/Roth IRAs)

As a US citizen abroad, you may still be eligible to contribute to US-based Individual Retirement Accounts (IRAs), including Roth IRAs, provided you have enough earned income and meet the IRS eligibility requirements. Income excluded with the FEIE is not considered taxable compensation. Contributions can be up to $7,000 annually, depending on your age and income level.

Property Investment

Purchasing property in Sweden is a viable option for US expats, whether for personal use or as an investment. The Swedish real estate market offers attractive opportunities, and the process is similar for expats and locals alike. However, be mindful of the associated taxes and fees, and seek local legal advice to ensure a smooth transaction. When it comes to selling private real property, a tax rate of 22% applies (2025).

US Stocks and Bonds

Maintaining investments in US-based stocks and bonds can be a straightforward and tax-efficient strategy. Sweden taxes capital gains from stock sales at a flat rate of 30%, regardless of the country in which the stocks are based but you may apply the Foreign Tax Credit to avoid double taxation.

Swedish Investment Accounts (ISK)

Sweden offers investment savings accounts known as Investeringssparkonto (ISK), which provide tax advantages for residents. While ISKs can be beneficial for Swedish taxpayers, US expats should exercise caution. The IRS may classify certain foreign investments as Passive Foreign Investment Companies (PFICs), leading to complex tax reporting and potentially higher taxes. If you have already invested in a PFIC or other foreign mutual funds, MyExpatTaxes can make reporting to the IRS as simple and affordable as possible.

Retiring in Sweden as a US Expat

Sweden offers a high quality of life, making it an attractive option for US expats looking to retire. With stunning nature, efficient public services, and a strong social welfare system, the country could provide a comfortable lifestyle for your golden years.

Sweden doesn’t have a specific retirement visa, so long-term stays require alternative residency options. US citizens can visit for up to 90 days without a visa, but those planning to stay longer must apply for a residence permit, often based on family ties, financial self-sufficiency, or other qualifying factors.

The cost of living in Sweden is notoriously high with expenses varying depending on the location. Major cities like Stockholm and Gothenburg tend to be more expensive, while smaller towns like Örebro or Gävle offer a more budget-friendly lifestyle. Healthcare in Sweden is high quality and publicly funded, but access is available only to legal residents—retirees without legal residency may need private health insurance. The country’s long, dark winters and mild summers can influence daily life, but Sweden is well-equipped with cozy indoor activities and strong community engagement.

For US expats living in Sweden, pension income is subject to both US and Swedish taxes. However, you may be able to claim a tax credit in the US for the taxes paid in Sweden under the Foreign Tax Credit (FTC). It’s important to carefully plan your finances, considering exchange rates, tax obligations, and long-term healthcare costs.

US-Sweden Expat Tax Compliance Solved with MyExpatTaxes

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Plan For Your Future with MyExpatInvest

That’s today’s taxes solved, but what about your financial future? Achieve your goals with expert guidance tailored for US expats. Our service connects you with a financial consultant specializing in international investments and retirement planning. We offer management of US mutual and hedge funds while helping you navigate Passive Foreign Investment Company (PFIC) reporting requirements. Your initial consultation is free, and we’ll match you with the right expert for your needs.