Denmark and Sweden are clearly at the high end of the European average tax rates, and salaries are comparatively high. However, from a corporate standpoint, it is important to note that a company's contribution to the social system is limited to only a few percentage points of the actual wages. Compared to other European countries, where social contributions can be up to 50%, the region’s salary level is very competitive.

Denmark
Foreign employees remain covered by the social security of their native country, if certain conditions are met. In this case, the employees do not pay social security contributions in Denmark

Sweden
Employers' social security contributions, 33 percent of payroll, are deductible from taxable income.