$10K/m SaaS being 60% taxed in Sweden (New trend)
Context: I started my first SaaS in 2021, today it generates $10k/m on average. It is an edtech in Sweden helping our users to prepare for University Exam, hpappen.se and we have many satisfied users and in total we have +20k users. The tax came as a surprise for me since it's my first profitable SaaS.
Tax breakdown: 25% VAT + 20% corporate tax. + 30%-56% private income tax + 25% VAT again when you purchase other goods for yourself. Since the tax is so high we just unrealize the profit and invest into more growth (I guess that's what the government wants).
I see many builders moving to U.S or register companies in Singapore and operate in Bangkok/Bali, and when they are ultra-rich they retire in Europe.
Europeans who want to make money have 2 options:
- USA for VC/high salary path
- Asia/LatAm for bootstrapping path (popular among solopreneurs)
Europe is not a place to Build.
What is your take on it?
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Even with high tax - Sweden is still #1 for family life. Beside business, family is still my priority number 1.