...
» Starting and running a Swedish business
» Declaring Taxes – Businesses
» Filing a PAYE return
» Growth Support
» Rules on Growth Support ("växa-stöd")

Rules on Growth Support ("växa-stöd")

If your business qualifies for Growth Support, you are entitled to Growth Support for up to 24 consecutive calendar months for your first and/or second employee. Growth Support is a type of “de minimis” aid, which means it is a subsidy of minor significance.

From the reporting period January 2026, you should apply for a refund of employer contributions in order to receive Growth Support.

If the Swedish Tax Agency approves your application for Growth Support, the subsidy amount will be paid into your tax account. The payment will be made on the corresponding PAYE return filing deadline date at the earliest.

Apply for Growth Support

If the employment began after 30 April 2024, you can apply for a refund of employer contributions that have been reported for the employee, with the exception of the pension contribution (10.21 per cent) on compensation up to SEK 35,000 per calendar month. Refunds do not apply to employer contributions on compensation above SEK 35,000, so you pay full employer contributions (31.42%) on that part of the compensation.

Example: calculation of Growth Support – employment began after 30 April 2024

Doris owns a limited company and hired Iris in January 2026. The limited company and Iris's employment meet the requirements for Growth Support. Iris receives a monthly salary of SEK 42,500.
The limited company reports full employer contributions on Iris's monthly salary. The limited company then applies for a refund of SEK 7,423 (SEK 35,000 x (31.42 per cent - 10.21 per cent)).

If the employment began before 1 May 2024, you can apply for a refund of employer contributions that have been reported for the employee, with the exception of the pension contribution (10.21 per cent) on compensation up to SEK 25,000 per calendar month. Refunds do not apply to employer contributions on compensation above SEK 25,000, so you pay full employer contributions (31.42%) on that part of the compensation.

Example: calculation of Growth Support – employment began before 1 May 2024

David owns a limited company and hired Theo in March 2024. The limited company and Theo's employment meet the requirements for Growth Support. Theo receives a monthly salary of SEK 42,500.

The limited company reports full employer contributions on Theo's monthly salary. The limited company then applies for a refund of SEK 5,302 (SEK 25,000 x (31.42 per cent - 10.21 per cent)).

If you were entitled to a reduction of employer contributions for a particular employee in December 2025, but have not received a reduction for 24 calendar months, you may be entitled to a refund of employer contributions relating to compensation paid to the same employee during the remaining calendar months from the reporting period January 2026.

If you have reported lower employer contributions or received a reduction in employer contributions, for example regional support or R&D activities (“forskningsavdrag”), for the employee, this will affect the amount you can apply for a refund.

Growth Support (Legal guidance, in Swedish)

Which types of businesses are eligible for Growth Support?

A natural person (sole trader) who has run an active business with a maximum of one employee since 1 January 2024.
A limited company that has carried out business activities since 1 January 2024, either without any employees, or with one employee only. If such a limited company has paid only one part-owner or close relative a salary, this must not be taken into account in assessing the company's eligibility for Growth Support.
A partnership that has run an active business with a maximum of one employee since 1 January 2024. The partnership can have a maximum of two partners.

The company must meet the requirements for Growth Support since 1 January 2024 or since the business started and until the employment starts.

If you already had employed one employee on 1 January 2024, you can receive Growth Support for one additional person that you hire from 1 May 2024 and onwards. This only applies as long as the first employee is still employed when you hire the second person.

When determining whether your business is eligible for Growth Support, you can disregard any employee recruitment involving a maximum total contributions-liable compensation payment (to the same individual) of SEK 5,000 since 1 January 2024.

Requirements for being a growth company (Legal guidance, in Swedish)

Close relatives

A close relative can be any of the following:

spouse
parent
grandparent
child (including stepchild and foster child) and child’s spouse
sibling, sibling’s spouse and sibling’s children
estate of deceased person in which you or a close relative are a part owner

The following are also considered spouses:

individuals in a registered civil partnership
cohabiting partners who have previously been married to each other
cohabiting partners who have – or have had – children together

Grandchildren, great-grandchildren and so on also count as children.

Examples of businesses eligible for Growth Support

Example: a part-owner and her close relative

Maja and her friend Mikael jointly own a limited company which employed Maja’s adult son Petrus on 1 December 2024. Maja has paid herself a salary since 1 January 2024, but Mikael has not. The company meets the basic requirements to qualify for Growth Support. However, it cannot be granted Growth Support for Maja since she is a part-owner. It cannot receive Growth Support for Petrus either, since he is a close relative of Maja.When the company has paid compensation to both Maja and Petrus the company is not eligible for Growth Support.

Example: a business that is not eligible for Growth Support

Oskar runs an active sole trader business, and has had two employees up to and including March 2024. They have both received a total of more than SEK 5,000 in compensation. On 2 January 2025, Oskar hired two new employees. Since he has had two employees since 1 January 2024, his business does not qualify for Growth Support. His business cannot receive Growth Support for compensation paid to the employees hired on 2 January 2025.

Example: two employees after 1 May 2024

Alma’s sole trader business meets the basic requirements to qualify for Growth Support. She hires Isak on 1 July 2024 and Eva on 1 October 2024. Both are employed on a permanent basis, work full-time, and receive a monthly salary of SEK 32,000.

Alma is entitled to reduced employer’s contributions (10.21%) up to the threshold of SEK 25,000 per month for the compensation she pays Isak between 1 July and 31 December 2024. Alma pays employer contributions at 31.42% on the remaining SEK 7,000 above that threshold. From 1 January 2025, Alma is entitled to Growth Support for Isak, and pays employer contributions at 10.21% on his entire monthly salary of SEK 32,000. Alma is entitled to Growth Support for Isak for up to 24 consecutive calendar months.

Alma is not eligible for Growth Support for compensation she pays Eva between 1 October and 31 December 2024. However, she is entitled to Growth Support for Eva from 1 January 2025, and pays employer contributions at 10.21% on her entire monthly salary of SEK 32,000. Alma is entitled to Growth Support for Eva for up to 24 consecutive calendar months.

Example: the first employee leaves before the second employee starts

Robert runs a limited company. He employs Robin on 1 December 2023. Robin is hired on a permanent, full-time basis, but finds another job and leaves in mid-February 2024. On 1 June 2024, Robert employs Anja on a permanent, full-time basis. She receives a monthly salary of SEK 36,000. The company is not entitled to Growth Support for Anja since Robin's employment term ends before Anja's starts.

Example: a second employee with a monthly salary of SEK 38,000

Samuel runs a limited company that meets the basic requirements to qualify for Growth Support. Samuel pays himself a monthly salary. The company has had one other employee since 1 January 2022. On 1 November 2024, the company hires another employee, Emilia, on a permanent, full-time basis. She receives a monthly salary of SEK 38,000.

The company is not eligible for Growth Support for the compensation paid to Emilia between 1 November and 31 December 2024.

However, it can receive Growth Support for compensation paid to her from 1 January 2025 onwards. Samuel's company pays reduced employer contributions (10.21%) on her compensation up to SEK 35,000. The company pays the full rate of employer contributions (31.42%) on the remaining monthly compensation payment of SEK 3,000. The reduced rate of contributions applies for up to 24 consecutive calendar months.

Example: a first employee hired before 1 May 2024 and a second employee hired after 1 May 2024

Karl runs a limited company that meets the basic requirements to qualify for Growth Support. Karl is employed by the company and pays himself a monthly salary. The company has had one other employee, Hannes, since 1 February 2024. Hannes works full time and receives a monthly salary of SEK 30,000.

The company pays employer contributions at 10.21% on the first SEK 25,000 of Hannes' compensation, and at 31.42% on the remaining SEK 5,000. The reduced rate of contributions applies for up to 24 consecutive calendar months

On 1 August 2024, the company hires another employee, Cecilia. She is employed on a permanent, full-time basis and receives a monthly salary of SEK 35,000.

The company is not eligible for Growth Support for the compensation paid to Cecilia between 1 August and 31 December 2024.

However, it can receive Growth Support for compensation it pays her from 1 January 2025 onwards. Karl's company pays reduced employer contributions (10.21%) on her total monthly salary of SEK 35,000, for up to 24 consecutive calendar months.

Example: hiring more than two people at the same time

Naima has run a limited company without any employees since 1 January 2024. On 1 November 2024, the company hires three people on a permanent, full-time basis. All three employees receive their first compensation payment on 23 December 2024. Naima must determine which of them is the first employee, and which is the second.

For the first employee, Naima’s company pays employer contributions at 10.21% on compensation for December 2024, up to SEK 25,000. From 1 January 2025, the reduced rate of employer contributions (10.21%) applies to compensation up to SEK 35,000 per month. Naima’s limited company is entitled to Growth Support for up to 24 consecutive calendar months for its first employee from December 2024.

For the second employee, the company is not entitled to Growth Support on compensation paid in December 2024. From 1 January 2025, the reduced rate of employer contributions (10.21%) applies to compensation up to SEK 35,000 per month. Naima's company is entitled to Growth Support for up to 24 consecutive calendar months for its second employee from January 2025.

Employers with multiple business operations

An employer with several business operations is only entitled to Growth Support for one of them. If you have received Growth Support for one of your business operations, none of your other business operations are entitled to this subsidy.

The businesses in an associate enterprise are regarded as a single employer

Businesses that are under common management are associate enterprises. In order for an individual (or group of individuals) to be regarded as a business’s management, the individual(s) in question must exercise control over the business. Ownership of shares in a limited company implies control through the capacity to appoint a board of directors, a CEO, and so on. To exercise control over a limited company, shareholders must have more than 50% of the voting rights in the company. Alternatively, control over the company must have been granted in some other way – for example, through a contract or similar.

According to the Growth Support regulations, a sole trader business and a limited company owned by the sole trader are also considered to be two separate businesses under common management.

The businesses in an associate enterprise are regarded as a single employer. In order to be eligible for Growth Support, all businesses in an associate enterprise must meet the eligibility requirements. This means that it is not possible to set up several limited companies and either move an employee between them or hire a new employee for each company.

The businesses in an associate enterprise are regarded as a single employer (Legal guidance, in Swedish)

Example: Growth Support – associate enterprise

Example 1

Erik and his son Daniel each own 50% of company A and company B. These companies are under common management since the same people have an equal share of ownership in both company A and B. The same group of individuals has common control over both companies, and these companies are part of an associate enterprise.

If Erik owns 100% of company A and Daniel owns 100% of company B, companies A and B are owned and controlled by different people. These companies are not under common management, and are not therefore part of an associate enterprise – even if Erik and Daniel are both directors of both companies, and despite the fact that they are related.

Example 2

Ali owns 100% of company A, and Bella owns 100% of company B. Ali and Bella both own company X, their share ownership being 55% and 45% respectively.
Company A and company X are part of an associate enterprise. Ali owns all the shares in company A and more than half of the shares in company X. These companies are under common management since Ali has control over both of them.

Companies B and X are not part of an associate enterprise. Bella owns all of the shares in company B, but only 45% of the shares in company X. There is neither a management agreement, nor any other relevant circumstance, granting Bella control over company X. Bella has control over company B, but not over company X.

Example 3

Ami has an active sole trader business and owns a limited company. These businesses are part of an associate enterprise and are therefore regarded as one employer. This means both businesses must meet the Growth Support eligibility requirements.

If both businesses meet these requirements, and one employee was hired by the sole trader business on 1 November 2024, Ami is entitled to Growth Support for the compensation paid by the sole trader business between 1 November and 31 December 2024. Ami pays the reduced rate of employer contributions (10.21%) on up to SEK 25,000 per month.

From 1 January 2025, she is entitled to Growth Support according to the new rules, and pays employer contributions at 10.21% on up to SEK 35,000 per month.

Growth Support is granted for up to 24 consecutive calendar months.

When a second employee is hired on 1 February 2025, the sole trader business is also entitled to Growth Support for that employee on compensation up to SEK 35,000 per month for up to 24 consecutive calendar months.

Employee requirements

The employment contract must cover a period of employment of at least three consecutive months and a minimum of 20 working hours per week.

The person employed by a sole trader may not, during the calendar year or any of the three preceding calendar years, have been employed in another business that is or has been operated directly or indirectly by the same employer or someone closely related to the employer.

A person employed by a limited company or partnership may not, during the calendar year or any of the three preceding calendar years, have been employed in another business that is or has been operated, directly or indirectly, by the same employer or anyone related to a natural person who, directly or indirectly, owns a share in the company.

Example: Growth Support – employment requirements

Example: employment requirement of 20 working hours per week not fulfilled

An employee initially meets the requirements and the employer is granted Growth Support for five months. However, the minimum employment requirement of 20 working hours per week is not fulfilled during months six to eight. The employer is not granted Growth Support for months six to eight. However, the employer may be entitled to Growth Support during months 9 to 24, provided that the requirements are fulfilled. The Swedish Tax Agency cannot grant an extension of the subsidy period of up to 24 months.

Example: employment gap due to sickness

A company employs Eva (for a minimum of 20 hours per week for at least three months). She receives a salary in January and February, but is then sick for three weeks in March. Eva receives sickness benefit from the Swedish Social Insurance Agency (“Försäkringskassan”) while on sick leave, and this counts as a work period. The Growth Support requirements have therefore been fulfilled when the company pays Eva’s salary for March.

Example: employment gap due to unpaid leave

A company employs Jens (for a minimum of 20 hours per week for at least three months) in August 2024. After seven months of work, Jens applies to take unpaid leave (not paid annual leave, sick leave or parental leave) in February, March and May 2025. Since Jens will not work at least 20 hours per week in February, March and May, his employer is not entitled to Growth Support during these months. However, the company remains entitled to Growth Support for April, June and the following 13 months. The subsidy period of up to 24 months cannot be extended.

Support of minor significance (de minimis aid)

Growth Support is a state aid that must meet the requirements for being considered as de minimis aid under EU rules. You can only receive Growth Support if you have not already received a total of €300,000 in de minimis aid over the past three years, or the lower amount that may apply to the sector in which you operate.

As an employer, you must state in your application for Growth Support any other minor significance that has been granted to you and companies that are part of the same entity. If you have received a refund (Growth Support) for previous months, this is a support of minor sigificance. In this case, you must report the amount you have previously received together with any other support of minor significance in your application for Growth Support under the heading Information on support of minor significance.

Information about granted support of minor significance must be recorded in a central register. As an employer, you must provide the Swedish Tax Agency with the information needed to assess whether you are eligible for Growth Support under the applicable EU regulation and to register the support.

Support of minor significance (legal guidance, in Swedish)

Rules on Growth Support for the first employee hired before 1 May 2024

If you are a sole trader and hired your first employee before 1 May 2024, you can continue to receive Growth Support on compensation of up to SEK 25,000 per calendar month during the first 24 months of employment. Starting with the reporting period January 2026, you can apply for a refund of employer contributions reported for the employee, with the exception of the pension contribution (10.21 per cent) on compensation up to SEK 25, 000 per calendar month according to the transitional rules. You pay the full rate of employer contributions (31.42%) on compensation above SEK 25,000.

Transitional rules (legal guidance, in Swedish)

What is a sole proprietorship?

a sole trader who has carried out business activities without any employees since 1 January 2017
a limited company that has carried out business activities since 1 January 2017 with a maximum of one employee, who is also a part-owner of the company or a family member of a part-owner.
a partnership with a maximum of two partners which has carried out business activities without any employees since 1 January 2017

A limited company can be considered a sole proprietorship even if salary has been paid out to a part-owner or a family member of a part-owner. However, Growth Support is not valid for the salary of a part-owner or one of their family members.

When determining whether your business is a sole proprietorship, you can disregard cases in which a maximum of SEK 5,000 in contributions-liable compensation has been paid to the same individual.

Growth Support for employment during 1 January 2021 – 30 April 2024 (Legal guidance, in Swedish)

Example - Growth Support – first employee hired before 1 May 2024

Moa owns a limited company and pays herself a salary every month. The company has had one further employee, Pontus, since 1 February 2024. The company has had no other employees since 1 January 2017, and meets the criteria to qualify as a sole proprietorship. Pontus works full time and receives a monthly salary of SEK 37,000. The company can continue to receive Growth Support for the compensation paid to Pontus, and pay employer contributions at 10.21% on up to SEK 25,000. The company pays the full rate of employer contributions (31.42%) on the remaining SEK 12,000. Moa’s company is entitled to Growth Support for up to 24 consecutive calendar months.

Till toppen

Other languages