Swedish dilemma

nixonuk

Hello

I am currently working in Sweden for a Uk company, basically I am on a UK contract ie paying British tax but after 180 days I have to decide either to go back to the UK or stay in Sweden. If I stay I have to go on the Swedish tax system.

My question really is that I have been a paid a nice bonus by the company and I need to invest it. Is it worth me saving it in ISAs in the UK? How will I work if I decide to stay in Sweden, I mean can I keep that?

I have never really had cash to save like this before so am a bit naive on such matters.

Any advice appreciated.

Cook_County

Sweden would not exempt a UK ISA.

nixonuk

Thanks, so I can keep it ticking over?

Cook_County

Probably, depending on the rules of the bank you invest with but you will need to declare it on your Swedish tax return so it may not be as good as you think to have!

nixonuk

Yes thats what worries me to be honest. I guess I need to find out if I am better off saving in Sweden than back home.

Becky_2

Hi Nixon UK!

I am Swedish and the interest rates in Sweden on saving accounts are much lower than in the UK. An interest rate of 2% is pretty normal on a savings account and many current account have 0% interest. The equivalent to a Swedish ISA doesn't exist.

The tax you pay in Sweden is also much higher, it starts around 35% and if you are a high income earner of around £20 000 per annum(around 250 000 Swedish krona) then the tax is 55%.

Hope this helps!

Hope you are enjoying your time in Sweden!

Becky

nixonuk wrote: »

Hello

I am currently working in Sweden for a Uk company, basically I am on a UK contract ie paying British tax but after 180 days I have to decide either to go back to the UK or stay in Sweden. If I stay I have to go on the Swedish tax system.

My question really is that I have been a paid a nice bonus by the company and I need to invest it. Is it worth me saving it in ISAs in the UK? How will I work if I decide to stay in Sweden, I mean can I keep that?

I have never really had cash to save like this before so am a bit naive on such matters.

Any advice appreciated.

masonic

From the ISA guidance notes:-

3.8 Investors will no longer be able to subscribe to an ISA after they cease to be resident and ordinarily resident in the UK,...
An existing ISA need not be closed should any of the above happen, but no further subscriptions to the ISA can be made unless and until the residence conditions are satisfied again.

So you will be ok to hold funds in your existing ISA, but you will not be able to deposit anything more.

PBA

masonic wrote: »

From the ISA guidance notes:-



So you will be ok to hold funds in your existing ISA, but you will not be able to deposit anything more.

Your ISA is only tax free under UK tax rules, so if you become a taxpayer in another country you will have to declare your ISA interest and pay tax on it as appropriate.