The European Commission has ruled that two Scandinavian schemes lowering taxes associated with recruiting experts from abroad do not constitute illegal state aid.
Brussels said because employers in all sectors benefited from the systems – operating in Sweden and Denmark – they do not favour any particular industry or company, and so follow EU state aid rules.
Benefits favour foreign experts with specialist qualifications.
In Sweden, benefits of a 25 per cent reduction of income tax and in employers’ social contributions last up to five years. In Denmark, a special 25% flat rate income tax is offered for between six months and three years.