Hiring across borders always raises new questions. For international recruitment agencies placing consultants in Denmark, Sweden, Norway, or Finland, the challenge is making sure that projects run smoothly – without unexpected risks or costs.
The Nordic countries are attractive markets with strong demand for external professionals, but they also have some of the strictest labour and tax rules in Europe.
Before placing a consultant, there are five questions every agency should ask.
1. Who carries the legal employer responsibility?
In the Nordics, there must always be a legal employer on paper. This party is responsible for contracts, payroll, tax reporting, and social contributions.
- If your agency does not have a local entity, you cannot employ directly.
- If the end-client does not want to take on liability, a local Employer of Record (EOR) is usually the only compliant solution.
- Without a clear employer, both agency and client risk being held responsible by authorities (Danish Working Environment Authority, Arbetsmiljöverket (Sweden), Arbeidstilsynet (Norway), Työterveyslaitos (Finland)).
Key takeaway: Confirm early who is the official employer – otherwise your agency could face unexpected liabilities.
2. How do payroll and taxes work locally?
Agencies cannot run payroll in the Nordics from abroad. Each consultant must be paid through a locally compliant system, with tax and social security withheld at source.
- Denmark, Sweden, Norway, and Finland all require local income tax reporting (Skattestyrelsen, Skatteverket, Skatteetaten, Vero).
- Social contributions are mandatory and vary between countries (e.g. Denmark ~8% AM-bidrag + pensionsbidrag; Sweden ~31.42% arbetsgivaravgifter; Norway ~14.1% arbeidsgiveravgift; Finland ~20-25% työnantajan sivukulut).
- Pension and insurance schemes are often tied to collective agreements, which must be respected (LO Sweden, Arbeidstilsynet Norway).
Key takeaway: Ask how payroll, taxes, and benefits will be handled before you place the consultant – it’s not optional.
3. How fast can consultants start working?
Speed matters. Clients often need consultants on-site within days. The good news:
- With an EOR, onboarding can be completed quickly once documentation is ready.
- Work permits for non-EU consultants can add time, but local employer support usually makes the process smoother (Udlændingestyrelsen (Denmark), Migrationsverket (Sweden), UDI (Norway), Migri (Finland)).
- Direct employment by the end-client often takes longer. In addition, entity registration and compliance checks can create delays.
Key takeaway: Clarify onboarding timelines early – delays are usually caused by missing local employer structures.
4. What are the real costs?
Many agencies are surprised by the cost structure in the Nordics. It’s not just a salary and a flat umbrella fee.
- Employer social contributions range between 20-35% depending on the country (OECD tax database, PwC Worldwide Tax Summaries).
- Pension, insurance, and holiday pay may also be mandatory.
- Authorities frequently reclassify B2B contracts without proper registration as employment. As a result, misclassification cases are common in the Nordics (European Labour Authority).
Key takeaway: Budget for the full employer cost – not just the consultant’s fee. Transparency here protects both your agency and your client.
5. What’s the standard market practice?
Agencies sometimes ask: Do others really use EOR in the Nordics, or can we just let consultants work via their own company (B2B)? The reality is clear:
- International agencies almost always use EOR or umbrella setups.
- Misclassification cases are frequent when consultants are engaged via a B2B contract without proper registration (European Labour Authority, ILO).
- End-clients increasingly demand a compliant structure, to avoid reputational and financial risk.
Key takeaway: Follow established market practice. In the Nordics, that means using an EOR to handle compliance while your agency focuses on client delivery.
Summary
Placing consultants in Denmark, Sweden, Norway, and Finland is possible – and often essential for international projects. But compliance in the Nordics requires planning.
By asking five simple questions up front, your agency can avoid hidden risks:
- Who is the legal employer?
- How is payroll and tax handled?
- How fast can onboarding happen?
- What are the real costs?
- What’s the market standard?
With clear answers, placements become smooth, predictable, and compliant.
At Northern Partners, we support international agencies every day with EOR and umbrella solutions in the Nordics – ensuring consultants are engaged legally, clients are protected, and agencies can deliver without risk.
Disclaimer
This article is provided for general informational and marketing purposes only. It does not constitute legal, tax, or accounting advice, and should not be relied upon as such. Regulations in Denmark, Sweden, Norway and Finland are subject to change, and the correct setup depends on individual circumstances. We always recommend seeking professional advice from a qualified accountant, tax advisor, or legal expert before making any decisions.
