The first bilateral agreement between the two countries was signed on June 11, 2026, but still requires completion of the domestic approval procedures before entering into force.
On June 11, 2026, Brazil and Sweden signed their first bilateral social security agreement (socialförsäkringsavtal), accompanied by an administrative arrangement governing its implementation. The agreement still depends on the completion of the domestic approval procedures in both countries and is therefore not yet in force. Nevertheless, its signature already provides companies with an important framework for planning future assignments between Brazil and Sweden.
Why is the agreement important?
International assignments can create uncertainty regarding the applicable social security legislation and, in certain circumstances, exposure to social security contributions in both countries. The agreement coordinates the Brazilian and Swedish systems without replacing their respective domestic laws. Generally, employees and self-employed workers will be subject to the legislation of the country where the work is actually performed, subject to the exceptions established in the agreement.
More than a payroll-related operational issue, the determination of the applicable social security system should be addressed when designing the mobility arrangement from the outset. The expected duration, employing entity, destination country and nature of the assignment may affect the applicable solution.
Temporary assignments
Once the agreement enters into force, an employee temporarily posted to the other country may remain covered by the social security system of the home country, provided that the expected duration of the work does not exceed 24 months.
If unforeseen circumstances require the work to continue beyond that period, a single extension of up to an additional 24 months may be requested, subject to the approval of the competent authorities of both countries. The extension is not automatic, and a certificate of coverage must be obtained before the assignment begins.
What about social security benefits?
The agreement also allows insurance or contribution periods completed in both countries to be combined, when necessary, to establish entitlement to certain benefits.
This aggregation does not result in the transfer of social security contributions between the two systems. Each country assesses eligibility and calculates its respective share under its own legislation and may apply a pro rata calculation based on the periods completed under that country’s system.
When will the agreement become applicable?
The agreement is not yet in force. Before it can produce legal effects, Brazil and Sweden must complete their respective domestic approval procedures and formally notify each other that those procedures have been concluded.
The agreement will enter into force on the first day of the third month following the month in which the last notification is made. No effective date has been announced so far. Accordingly, the rules described above should be treated as a framework for future planning, rather than as a regime that is already applicable.
What should companies do now?
Companies with employees moving between Brazil and Sweden may use the period preceding the agreement’s entry into force to review their current and planned mobility arrangements. In particular, they should:
- map existing and planned international movements and distinguish temporary assignments, transfers and local hires;
- verify the expected duration, employing entity and relationship with the host company;
- review payroll arrangements and any potential exposure to social security contributions in both countries; and
- integrate the social security analysis with the relevant employment, immigration, tax and contractual considerations.
The key issue is timing: these matters should be addressed before the assignment is approved, while its structure can still be adjusted.
Next steps
We will continue to monitor the ratification process. The new agreement reinforces a broader principle: social security considerations should form part of international mobility planning before an employee is posted abroad, together with the relevant employment, immigration, tax and contractual aspects
Official sources
Brazilian Ministry of Social Security – Status of International Social Security Agreements
Government of Sweden – Agreement and Administrative Arrangement
Hugo Snobohm Hartzell é consultor no Pacheco Neto Sanden Teisseire Advogados.
Luccas Miranda Machado de Melo Mendonça is associate at Pacheco Neto Sanden Teisseire Advogados.
