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March 20, 2024

Sweden proposes major changes to the current work permit system

The Swedish authorities recently invited comments from relevant entities regarding a report on proposed changes to the current work permit system. Stakeholders can provide feedback until 16 May 2024. The proposed changes, if approved, are expected to go into effect on 1 June 2025. The Swedish legislative process generally starts with an investigative report analyzing and evaluating a proposal. On 30 June 2022, the then-incumbent government announced the creation of a committee tasked with preparing a report on how a labor market testing system for third-country nationals could replace the current work permit regulation. After the latest Swedish election (in September 2022), the new government changed the guidelines for the committee (in February 2023) and asked for the report to focus on a new work permit system requiring a certain salary level for applicants.

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.

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Full text of Tax Alert