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WORK PERMITS

Award-winning Australian coffee entrepreneur told to leave Sweden

Australian coffee entrepreneur Steve Moloney has three times been named Sweden's best barista and has set up a successful business in his six years in the country. But now he has been told he may have to leave Sweden by the Migration Agency.

Award-winning Australian coffee entrepreneur told to leave Sweden
Steve Moloney speaks to The Local about his work permit rejection. Photo: Love Coffee Roasters

Moloney was initially given less than two weeks to arrange to leave the country after the Migration Agency rejected his application for a residence permit as a sole trader (egen företagare), although this has now been extended for an extra week in order to file an appeal.  

The rejection came more than a year after the entrepreneur made the application, and the reason is that his visa application is being treated as a new application rather than an extension of his existing permit, and therefore he should apply from outside the country. But for the Australian, that means huge disruption to his personal life and his business.

He first came to the country on a one-year working holiday, later returning on a partner (sambo) visa to join his girlfriend. During their relationship, Moloney established himself as a sole trader with his company The Barista League, and after his relationship ended, his visa as an employee took over two and a half years to be approved by the Migration Agency, due to the huge increase in processing times.

READ ALSO: 'We are all extremely lucky to be working in coffee here in Sweden'


Photo: Fabian Schmid

“In the meantime, I was headhunted to a company in Gothenburg and applied for a visa based on the new employer and was finally granted residence in July 2017,” Moloney tells The Local. Later the same year, he decided to leave that job due to issues with the company management, and because his company The Barista League had grown so significantly, he applied for a visa as a sole trader. 

“I've invested so much in the company and my life here – I've got accommodation, friends, a girlfriend. My life is more here than back in Australia and it feels ridiculous that a bureaucratic technicality could get me thrown out after six or seven years,” Moloney explains.

READ ALSO: What to do if your work permit renewal gets rejected

“The business is growing super fast and really well, but I need to arrange work for the future and I can't do that when there's this uncertainty. The business is Sweden- and European-centric so moving back to Australia would mean losing the network and systems I'm working with now. And a lot of companies are relying on me to deliver on contracts i have with them.”

The entrepreneur has already received several references from business contacts, who have outlined the potential disruption and negative financial impact on their own companies if Moloney were to leave the country.

READ ALSO: What getting deported from Sweden (twice) taught me about life and business

“It's a strange discrimination against people who want to do something for themselves. I obviously feel very stressed, and there's a lot of disappointment.”

“It feels as if on a shallow level Sweden is all about startups, attracting talent and getting capital pumped into Stockholm for all these new ventures, but the bureaucracy doesn't work for international business owners that are in Sweden,” he explains. “My experience is that it is really difficult to be a small business owner, especially if you are trying to do something different, rather than a standard product within the existing system.”

Moloney also criticized the agency's lack of clarity, saying applicants are “basically walking in blind” with staff refusing to answer questions. He had been under the impression his new permit would be treated as an extension, rather than a new application, until he reached the decision in February.

Sweden's strict legislation around work permits and long processing times have caused difficulties for hundreds of internationals working in Sweden, including employees and entrepreneurs. In October, The Local spoke to American entrepreneur Peter Lincoln who was told to leave the country despite having launched a successful brewery.

In Lincoln's case, he had fallen foul of rules requiring foreign workers to earn a minimum salary, because he and his Swedish business partner had chosen to live off savings and invest their profits back into their business for faster growth. Earlier that year, another foreign entrepreneur was threatened with deportation for giving himself a pay cut, a decision he made in order to allow his company to grow. 

Sweden's strict rules in the area are designed to stop workers being exploited, but have led to thousands of foreign workers being forced to leave the country. In addition to entrepreneurs, the legislation has hit the tech sector particularly hard, with numerous cases of foreign workers deported over minor errors in their paperwork.

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WORKING IN SWEDEN

When will Sweden raise the work permit salary threshold?

Sweden's work permit salary threshold is currently set as 80 percent of the most recent median salary figures, which are from June last year. When are these figures going to be updated, increasing the threshold?

When will Sweden raise the work permit salary threshold?

What’s the current salary threshold?

On November 1st, 2023, Sweden’s work permit salary threshold was set at 80 percent of the median salary, as calculated each year by Statistics Sweden. This means that the limit will change every year as the median salary changes.

It’s currently 27,360 kronor, or 80 percent of the most recent median salary figure from June 2023.

How much will it go up by and when?

We don’t know what the new median salary will be yet, but we do know that Statistics Sweden will release its new median salary figure on June 18th, 2024. It will almost definitely rise, meaning that the threshold for a new work permit or a work permit extension will also rise.

It’s worth noting that this will only apply to applications submitted after June 18th – the threshold is determined by the most recent salary figures at the time of application, not at the time a decision is made. This means that if you have a valid work permit in Sweden but you earn below the new limit, you’ll be allowed to stay in Sweden until your permit expires.

You will, however, need to earn above the threshold when you apply for a work permit extension or permanent residency.

Are there any plans to raise the salary threshold further?

Yes. The government plans to raise the work permit threshold for new permits to 100 percent of the median salary (currently 34,200 kronor, although this will also rise as Statistics Sweden releases new figures) at the time of application, with exemptions for some categories of workers. 

This is currently going through the consultation stage (remiss) of the legislative process, which means it is not yet a firm proposal. If it does go ahead, the proposed starting date is June 1st, 2025.

There would be a one-year grace period for work permit renewals: the current rule (80 percent of the median salary) would continue to apply for any applications for extensions submitted to the Migration Agency by June 1st 2026 at the latest.

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