vanlady said:
They pay those taxes whether they play here or there anyway. The taxes in Sweden are far lower than here in Canada. Tax rates in Sweden are 28-34%. Here in Canada they range up to 51%. Swedens tax rates are actually some of the lowest in Sweden, there business tax rate is the lowest in europe.
Actually, income tax rates in Sweden and Finland are among the highest in Europe. More importantly rates increase progressively towards the upper end of income scale so big earners pay big time. Also, income tax comprises state and municipal tax. The figure you are quoting for Sweden sounds like the state part for top earners.
This data comes from Finnish taxpayers' association. The table is a mess but the columns indicate "total tax rates as a proportion of GNP" for a number of years. Granted, this includes all taxes, not just income tax, but still. Country ranking alternates with rate percentage with Sweden leading the pack all the way.
1985 1990 1995 2000 2002
% % % % %
Sweden 48.5 1 53.6 1 47.6 2 54.0 1 51.0 1
Denmark 47.4 2 47.1 2 49.4 1 49.5 2 49.0 2
Finland 40.1 8 44.8 3 45.0 3 47.3 3 46.0 3
Belgium 45.6 3 43.2 4 44.6 4 45.7 4 46.0 4
Austria 41.9 7 40.5 8 41.6 7 43.3 6 44.0 5
France 43.8 4 43.0 5 44.0 5 45.2 5 44.0 6
Norway 43.3 5 41.8 7 41.5 8 39.3 9 43.0 7
Italy 34.4 11 38.9 9 41.2 9 41.9 7 41.0 8
The Netherlands 42.6 6 43.0 6 42.0 6 41.1 8 39.0 9
Great Britain 37.7 9 36.8 10 34.8 12 37.3 11 36.0 10
Germany 37.2 10 35.7 12 38.2 10 37.8 10 36.0 11
Spain 27.8 15 33.2 13 32.8 14 35.2 14 36.0 12
Canada 32.6 12 35.9 11 35.6 11 35.6 12 33.0 13
Australia 29.1 14 29.3 16 29.7 15 31.5 15 31.5* 14*
Switzerland 30.2 13 30.6 14 33.2 13 31.3 13 31.0 15
USA 26.1 17 26.7 17 27.6 17 29.7 16 18.0 16
Japan 27.2 16 30.1 15 27.7 16 27.5 17 16.0 17
There are all sorts of exceptions though, for instance the six-months rule which grants you tax-free status for a limited length stay. This is the reason why European players have been hopping from one league to another over the season, for instance Olli Jokinen played first in Switzerland, then in Sweden, and only now signed for his home club IFK Helsinki at the Finnish league deadline on Jan 31. However if you become a permanent resident, you will pay through the nose just like the locals.