A Complete Guide to Employer of Record Services in Sweden

In the past three years, many of us have realised that the world is much smaller than we thought. Most businesses had to adapt in some way during the pandemic, and the result was a shift towards remote working or a hybrid model becoming more normal. Another benefit of this is that we now understand that we don’t have to limit ourselves to one particular geographical area when we search for staff. See more on Employer of Record Services in Sweden.

It’s now easier than ever to expand your operations into new locations, tap into the talent pools available and gain business in international markets. One country that you should definitely add to your list of potential explorational avenues is Sweden. 

Sweden boasts an impressive economy that is rich in highly skilled workers who have a knack for innovation and creativity. It’s geographically situated in a great vantage point between the US, Europe and the UK and is constantly kicking goals in a number of industries. 

If you’re looking to expand into Sweden or hire its exceptional workers, it might be handy to get help setting things up. This is where an Employer of Record can be a lifesaver, but what is it? How should you use one in Sweden? How do you find one? Read on to find out more. 

What Is an Employer of Record?

An Employer of Record is sometimes shortened to EOR, and it’s basically a third-party company that can take care of most (if not all) tasks related to employment. An EOR is able to take care of costings, payroll, taxes, onboarding, contract negotiations and anything else related to an employee. 

Using an EOR is beneficial to companies and employers. It allows you to spend more time and energy on your business than you would normally be able to if you had to set up the infrastructure in a new country to take care of all the employment things yourself. 

Using an EOR is smart basic outsourcing. It’s no different to hiring a third-party company to maintain the cleaning services in your building or take care of your client newsletter. 

Do You Need Employer of Record Services in Sweden?

You don’t have to utilise EOR services if you wish to work in Sweden or employ staff based there, but it can make things a lot easier. 

How to Use Employer of Record Services in Sweden

As stated above, there’s no obligation to use Employer of Record Services when hiring in Sweden, but there are certain circumstances under which an EOR will definitely put you ahead of your competition. 

No Local Incorporation

Even the most innovative teams can find it hard to get things rolling in a new country without local incorporation. Establishing a local entity can take a long time, cost a lot of money and, in some cases, simply isn’t necessary. 

Using an EOR can completely negate the need to establish a local corporation. The end result often feels more like the new country is a bit more like a new arm of the parent company, just really far away. 

Laws and Rules

Even though you are looking to expand in a country that is part of the EU, there are still laws that are unique to Sweden

It can be difficult and even overwhelming to deal with the business and labour laws of other countries. This can also involve several cultural differences. Not everything is always available online; some countries prefer to do everything digitally, some are still using paper.

Using an EOR will avoid the headache of dealing with these legalities yourself while also making sure your company doesn’t accidentally break the law because you didn’t read the fine print. 

Payments and Payroll

All companies seek to avoid any kind of interruption to the payroll cycle, and this can be particularly important if you’re dealing with international workers. 

Using an Employer of Record to complete payroll for your employees abroad can take a considerable level of stress out of the equation. EORs know how to perform the complete payroll cycle under the laws of the country in question while also understanding the cultural intricacies involved.

Time and Effort

Time is often the most precious commodity when it comes to business. If your business has decided it would like to make the most out of the talent pool available in Sweden, chances are, you want to make it happen now, not in two years.

EORs can take you from the idea of completing a project in Sweden to the actualisation of it incredibly fast. They already have structures in place on the ground, so all you have to do is provide your info and get the ball rolling.

This can save months, which in the business world is a whole lot of money.

Employer Record services Sweden

What Is the Difference Between an Employer of Record in Sweden and a Global Employment Organisation?

EORs are often used as part of a larger Global Employment Organisation (GEO) plan. A GEO service assists businesses of all sizes in mobilising their personnel in another country. The GEO abides by all the national and local labour regulations, taxes and work licences. GEOs sometimes also use an EOR to handle the payroll functions for their employees.

For a corporation that uses an EOR through a GEO service, the GEO serves as a single point of contact. An EOR could also be used as a stopgap measure while they set up a local entity. 

What Are the Advantages of Working with an Employer of Record (EOR)?

When a company is growing on an international scale without a pre-existing local presence in the new country of operations, EOR can be incredibly helpful. In the host country, the EOR will be legally responsible for managing your payroll processing, taxes and immigration. 

An Employer of Record can also assist you in hiring international talent, conducting background checks, overseeing benefits and performing various administrative tasks. 

By using an EOR, companies can ramp up their operations faster without risking compliance. Using an EOR is also a very convenient and cost-effective option for small businesses

Employer Record services Sweden

What Factors Should I Consider While Selecting an Employer of Record?

Most Employers of Record organisations provide similar services, but it’s crucial to choose one with whom you feel most at ease.

Don’t rush the decision-making process; instead, consider the following questions before making a choice.

  • Do they have a presence in the country where you want to go? Every Employer of Record has different levels of expertise working in different countries. The ideal situation is for the EOR to have significant experience working in-country with local knowledge.
  • Are they in compliance with local labour laws on a global scale? The biggest advantage of employing an EOR is that it reduces the danger of breaking local payroll, tax, and immigration regulations. When choosing a supplier, having a thorough understanding of such legislation is essential.
  • Have they worked with other business owners in your industry? They can tailor a solution to match the company’s needs if they understand the business.
  • Will you have a single point of contact or an online portal assigned to you? You don’t want to be viewed as a number with little human interaction while you’re in charge of people.
  • Is the Employer of Record service a fundamental service for them? If EOR is a sideline to their business, it will not be a primary priority. This can have an impact on employee morale and performance.

As a result, having a global Employer of Record can be a cost-effective approach to hiring people in that country. To manage local payroll, employment tasks, and immigration, the EOR will establish a legal organisation. In the host country, the EOR will also appear as the legal employer for your remote employees.

What Are the Drawbacks of Working with an Employer of Record in Sweden?

Under the EOR structure, the employee and the EOR have a legitimate employment relationship. However, the EOR doesn’t have any contact with the employee in relation to their daily work responsibilities.

The initial employer is responsible for this directive. Because of this, one drawback of using an EOR is that the lines of accountability can become blurred. This can be rectified with consistent communication that explicitly explains to all involved who is responsible for what. 

Employer Record services Sweden

How to Find an Employer of Record in Sweden

There are many companies out there who can provide EOR services in Sweden, and the main thing is to try to find one you can develop and foster a good working relationship with. 

Swapp Agency does offer EOR services in Sweden, along with Iceland, Finland, Norway and other countries. The agency was originally founded to connect the best remote workers in the Nordic Nations with companies around the world that would like to benefit from their expertise. 

Today Swapp has expanded their operations into many other arms of international business, including Employer of Record Services. So if you are looking to expand into Sweden or would like to use some of the incredible talent available there, drop Swapp a line today to find out how they can help you. 

Employer Record services Sweden


It doesn’t matter the size or scope of business operation; if you are thinking of expanding into Sweden or the other Nordic Countries, using an Employer of Record Service can save you time, energy and money. 

The business world is changing all the time as the interconnectivity of everything makes it smaller. The playing field is becoming more level, which is an exciting time for those of us in business who have learned to work smarter, not just harder.