Workforce Payments Guide Sweden

Last updated: Dec 18, 2023

Swedish Krona (SEK)
Payroll Frequency
Fiscal Year
1 January - 31 December
Employer Taxes
Employee Costs
Central Bank
Sveriges Riksbank, also known as The Riksbank or Riksbanken.
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3rd Party Payments

Authority Payment  Paid To  Due Date  Method 
Skatteverket  Employer contribution and withholding tax  14th of every month (working days) It may differ if 14th fall on weekends  Wire Transfer 

Payments Coverage

Papaya Global fully supports payments in Sweden.

Contractor Payments

Papaya Global supports payments to contractors in Sweden. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. It is advised for contractors to reach out to their bank to confirm how foreign currencies are handled

Payroll Frequency



IBAN Example Sweden


IBAN in print SE02 5434 8992 7868 9125 3986
Country Code SE
Digit Code 02
Bank Code 543
Bank Account Number 48992786891253986


The KYC (Know Your Customer) process in Sweden, also known as “kundkannedom,” is aimed at understanding the customers’ banking engagement and is a crucial part in the fight against money laundering and terrorist financing.

Companies are required to conduct a risk assessment before initiating a business relationship with a customer to gain customer knowledge and insight into the purpose for which the customer will use the company’s services.

The KYC process typically includes customer registration, asking questions about the customer’s income, sources of income, profession, and political involvement. For entrepreneurs, inquiries regarding registration certificates and articles of association may also be included.

Customers are required to provide ID documents– usually a photocopy of a driving license or passport– as well as proof of residential address, which can be an electricity bill, a telephone bill, a personal certificate, or another document that can substantiate the person’s residential address.

Companies need to identify if their customer is a politically exposed person (PEP), or related to or associated with a person holding a high position within a state, a state-owned company, or an international organization. For organizations, it is necessary to know who owns or has a decisive influence of more than 25%.

Companies also need to maintain accurate and current customer records and have routines for complying with anti-money laundering laws. If suspicious activity is detected, they are required to report it to the Financial Police, a special unit within the National Criminal Police, and reject the assignment immediately.

Banking Regulations

Cross-border workforce payments involve several banking laws and regulations in Sweden. Here are some key points:

  • Payment Services Act: This act regulates the conditions under which payment services may be provided. It includes provisions on transparency and information requirements for payment services, and the rights and obligations in connection with the provision of payment services.
  • Anti-Money Laundering Measures: Sweden has strict anti-money laundering laws that impact cross-border transactions. These laws require banks and other financial institutions to perform due diligence on their customers, monitor transactions, and report suspicious transactions.
  • Data Protection: The General Data Protection Regulation (GDPR) impacts how employers and payroll providers handle employee data. Companies must ensure that personal data transferred outside the EU is treated in a way that is consistent with the GDPR.
  • Tax Regulations: Employers must comply with the tax regulations of both the home country and the host country. This includes withholding the correct amount of tax and social security contributions, and reporting these amounts to the relevant authorities.
  • Employment Laws: Changes to the Swedish Employment Protection Act may impact cross-border workforce payments. One example includes changes to the rules for termination of employment and priority rules for re-employment.

Opening a bank account

To open a company bank account in Sweden, the requirements include:

1. Proof of identification, which could be a passport or national identification card.

2. Proof of legal permission to live and operate in Sweden, such as a visa or work permit.

3. Proof of residence in Sweden if a business is registered there.

4. Necessary paperwork, including proprietor identification papers, company bylaws, address verification.

5. Swedish personal identification number (personnummer), which can be acquired by registering with the Swedish Population Register through the government tax agency (known as Skatteverket).

6. The purpose of the account might also be required.

The process involves selecting a bank and the type of account to be opened, setting up a meeting with the chosen bank branch, completing the account opening application form, and submitting the application along with the necessary paperwork.

The process of acquiring a personal identification number can take between 2 to 4 weeks. The overall duration of the procedure for opening a business bank account in Sweden could range from a few days to a few weeks, depending on the circumstances, such as whether a person number is required and if the individual needs to apply for it.

International Banks

The major foreign banks operating in Sweden include

  • Aareal Bank
  • Adyen Nordic Bank
  • Alandsbanken Sverige AB
  • Bank of America Merrill Lynch International DAC
  • Bank of China (Luxemburg) S.A.
  • Barclays Sweden
  • Bigbank Sverige Filial
  • BNP Paribas Sweden
  • Citibank Europe plc
  • Credit Suisse International (UK)
  • Credit Agricole Corporate & Investment Bank
  • Danske Bank Sweden, Deutsche Bank AG
  • DNB Sverige
  • HSBC Private Bank
  • J.P. Morgan AG, J.P. Morgan Bank Luxembourg S.A.
  • J.P. Morgan Securities plc, J.P. Morgan Europe Ltd (UK), Landesbank Hessen-Thuringen Girozentrale
  • Lеn & Spar Sverige
  • National Westminster Bank Plc, Nordea
  • Northern Trust Global Services
  • PBB Deutsche Pfandbriefbank
  • Santander Consumer Bank
  • Societe Generale Bank
  • Standard Chartered Bank
  • UBS Europe SE

Major Local Banks

The major local banks operating in Sweden are:

  • Swedbank
  • Handelsbanken
  • SEB (Skandinaviska Enskilda Banken)
  • Nordea
  • SBAB Bank AB
  • Lansforsakringar Bank AB
  • Avanza Bank Holding AB
  • Nordnet AB
  • Ikano Bank AB
  • Skandiabanken AB
  • Avanza Bank AB
  • Bluestep Bank AB (publ)
  • Carnegie Investment Bank AB
  • Erik Penser Bank AB
  • Erik Penser Bank AB (publ)
  • ICA Banken AB
  • Landshypotek Bank AB
  • Marginalen Bank AB

Payment Tools

The B2C payment tools available in Sweden include:

1. Debit and credit cards such as Mastercard, Visa, Maestro, and American Express

2. Online banking and bank transfers through services like Trustly and Nordea

3. Mobile app payments via Swish

4. Buy Now, Pay Later (BNPL) services like Klarna

5. Digital Wallets such as PayPal, Apple Pay, and Samsung Pay

6. Other payment tools like Amazon Pay, Rocker, Majority, Brite Payments, Tink, Lendify, Zaver, Yepstr, Pej, Steven, and Plexian.


In Sweden, it is indeed possible to pay employees with cryptocurrencies. However, there are no specific regulations directed at cryptocurrencies including paying employees. The Swedish Financial Supervisory Authority (SFSA) has provided limited guidance on the treatment of crypto-assets, stating that they are not suitable for consumer investments due to their speculative nature.

When an employee receives cryptocurrency as compensation for their work, this is recognized as income based on the fair market value of the crypto at the time of receipt and is subject to income tax.

If you sell the received crypto in the future and realize a gain, you are required to pay capital gain taxes. Keep in mind that paying employees with cryptocurrencies could potentially pose legal and financial risks due to the lack of specific regulations and the speculative nature of crypto-assets.

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