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I have a somewhat unique situation, and I'm not sure how to handle.

I moved to Sweden with my girlfriend late 2015 because she obtained a job in Sweden. I was able to come along and establish Swedish residency as a "sambo" which means that I was able to prove that we've been in a long-term relationship. I have all the rights of a Swedish resident (social services, etc.).

Here's the unique part, my US employer agreed to allow me to work remotely. They have been withholding US federal taxes (I'm a FL resident) the entire time I've lived here.

So my question is, which government am I required to pay taxes to? Is it correct to pay the US government or am I supposed to file and pay to the Swedish government, and get my withholding back from the US? Am I required to file in Sweden at all? What's confounding all this for me is that I work for a US employer, and I've received residency by right through my girlfriend (as opposed to local employment, or for any other purposes).

Thank you for the advice.

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  • Thank you, I didn't realize this. I only called it unique because I've searched and searched and can't find info anywhere on the internet that describes my exact situation and how to handle.
    – David S
    Commented Feb 7, 2016 at 16:46
  • 1
    You may want to also check the Expats discussion.
    – keshlam
    Commented Feb 7, 2016 at 17:56

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So my question is, which government am I required to pay taxes to

Both. The United States taxes it's citizens on their worldwide income. You are still required to file tax return and pay taxes.

However, if you qualify, you may claim "Foreign Earned Income Exemption" on your earned income, which allows lowering significantly your US tax liability. If it is not enough and income remains to be taxed by the US, you can claim "Foreign Tax Credit" for the taxes paid in Sweden.

For the Foreign Earned Income Exclusion (FEIE) use form 2555, for the Foreign Tax Credit use form 1116.

Also, keep in mind the FBAR and FATCA requirements.

Don't forget to call your Congressman and communicate your complete satisfaction with these requirements.

am I supposed to file and pay to the Swedish government, and get my withholding back from the US

Sweden has the "first right" to tax you. The US just doesn't care. So you have to pay both and file in both.

What's confounding all this for me is that I work for a US employer, and I've received residency by right through my girlfriend (as opposed to local employment, or for any other purposes).

Completely irrelevant.

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