Tax on remote work if you live in Sweden

 

How are you taxed when you work remotely?

The main rule is that you pay tax in Denmark when you work on-site in Denmark and in Sweden when you work in Sweden. You will not be taxed twice on the same income.

If you work in Denmark and your salary is taxed there, you will not be taxed on the same salary in Sweden. However, you must still report your foreign income in your Swedish tax return.

If you work remotely, for example from home in Sweden or on business trips to other countries for your Danish employer, the salary for those working days may instead be taxed in Sweden. This depends on whether you are covered by the Öresund Tax Agreement.

The rules for when you are covered by the Öresund Tax Agreement changed on 1 January 2025. The updated agreement applies to income earned from 2025 onwards.

 

If you work remotely from 2025 onwards

Under the Öresund Tax Agreement that applies from 1 January 2025, your salary from employment in Denmark is taxed only in Denmark if you work in Denmark for at least 50% of your total working days during each 12-month period.

You can work anywhere in Sweden, not only from home, and on temporary business trips. However, you must not work at your employer’s permanent establishment in Sweden. The rules apply to both private and public sector employees.

When calculating the 12-month periods, holiday and sick leave count as working days in Denmark, your country of employment. If you work part of a day in Denmark, it counts as a full working day there.

The 12-month periods are rolling periods and may begin in the previous calendar year or end in the following calendar year. You therefore need to keep track of your working days in the current year as well as the year before and the year after.

You can use the Danish Tax Agency’s guide to keep track of your working days and check whether you meet the conditions of the Öresund Tax Agreement.

Read about the Öresund Tax Agreement and find the guide for Öresund commuters at skat.dk

What happens if you do not meet the conditions of the Öresund Tax Agreement?

If you work in Sweden for your Danish employer to a greater extent or in a way that is not covered by the Öresund Tax Agreement, your salary and benefits must be divided between Sweden and Denmark based on your working time in each country.

The part of your salary that relates to work carried out in Denmark is taxed in Denmark. Salary for work carried out in Sweden or other countries is taxed in Sweden.

Our guide to the Swedish income tax return explains how to report your Danish salary when it is taxable in Sweden.

Read about tax and remote work at Skatteverket

See our guide to the Swedish income tax return

 

If you worked remotely in 2024 or earlier

If you were employed in the private sector

If you lived in Sweden and commuted to Denmark to work for a private Danish employer, the 2003 Öresund Tax Agreement applied.

Under the agreement, your entire salary was taxed in Denmark even if you worked partly from home in Sweden or on temporary business trips in Sweden or other countries. To meet the conditions, you had to work in Denmark for at least 50% of your total working time during each three-month period. You could not work at your employer’s permanent establishment in Sweden.

When calculating the three-month periods, holiday and sick leave counted as working days in Denmark. If you worked part of a day in Denmark, it counted as a full working day there.

The three-month periods were rolling periods and could begin before or end after the end of the calendar year. If at least 50% of your working days during a three-month period counted as working days in Denmark, your salary for the entire period was taxed only in Denmark.

If you did not meet the conditions of the Öresund Tax Agreement

If you worked in Sweden for your Danish employer to a greater extent or in a way that was not covered by the agreement, your salary and benefits had to be divided between Sweden and Denmark based on your working time in each country.

The part of your salary that related to work carried out in Denmark was taxed in Denmark. Salary for work carried out in Sweden or other countries was taxed in Sweden.

Our guide to the Swedish income tax return explains how to report Danish salary that is taxable in Sweden.

Check the rules and working days for 2024 and earlier at the Danish Tax Agency

See our guide to the Swedish income tax return

If you were employed in the public sector

If you lived in Sweden, were employed in the public sector in Denmark and worked wholly or partly from home, you were not covered by the 2003 Öresund Tax Agreement.

In most cases, you were taxed in Sweden for the days you worked in Sweden and in Denmark for the days you worked in Denmark. Your salary and benefits were therefore divided between the two countries based on where you carried out the work.

Our guide to the Swedish income tax return explains how to report Danish salary that is taxable in Sweden.

Read about tax for public sector cross-border commuters at the Danish Tax Agency

Read about tax for public sector cross-border commuters on skat.dk

See our guide to the Swedish income tax return

See our guide to the Danish tax assessment notice

 

What happens to your preliminary tax?

Under the Öresund Tax Agreement that applies from 2025, your Danish employer does not have to deduct Swedish tax from your salary for work carried out in Sweden if you meet the conditions of the agreement.

This means that if you work partly in Sweden for your Danish employer and meet the conditions of the Öresund Tax Agreement, you no longer need to apply for a Swedish tax adjustment decision, jämkningsbeslut, from the Swedish Tax Agency, Skatteverket.

If you work in Denmark for less than 50% of your working days during a 12-month period, or otherwise do not meet the conditions of the Öresund Tax Agreement, your Danish employer must register as an employer in Sweden and deduct Swedish preliminary tax from your salary for the days you work in Sweden.

Your employer must deduct 30% of your salary for these working days unless Skatteverket has decided on a different rate. To make the preliminary tax as close as possible to your final tax, you can apply for a tax adjustment, jämkning. Skatteverket will then decide the rate your employer should use.

You should also adjust your income in your Danish preliminary income assessment, forskudsopgørelse, so that Danish preliminary tax is not deducted from salary that will be taxed in Sweden.

Read about tax deductions from a non-Swedish employer at Skatteverket

 

Your Danish employer can find guidance on the tax rules for employees from Sweden in our business guide.

See the tax guide for employers at Øresunddirektbusiness (in Danish)

 

What happens to your social security?

Working remotely can affect whether you are covered by social security in Sweden or Denmark. This depends on how much you work in each country.

The country whose social security system you are covered by determines where you are entitled to social benefits and earn public pension. It also affects where your employer must pay social security contributions.

See our page about social security when working in both Sweden and Denmark

 

What to keep track of as a cross-border commuter

1. Keep track of the days you work in Sweden and on business trips in countries other than Denmark.
   
   
2. If you work partly in Sweden, you need to apply for an A1 certificate from the relevant social security authority. If you are covered by Swedish social security, your entire salary must be pensionable in Sweden, and your Danish employer must pay Swedish employer contributions.
   
   
3. If you work in Sweden for your Danish employer and the Öresund Tax Agreement does not apply, your employer must register as an employer with the Swedish Tax Agency, Skatteverket. Your employer must deduct Swedish preliminary tax for the days you work in Sweden and submit an employer declaration each month.
   
   
4. Contact the Danish Tax Agency, Skattestyrelsen, to adjust your Danish preliminary income assessment, forskudsopgørelse, if you work in Sweden to an extent that means your salary is taxable there. Your employer should not deduct Danish preliminary tax from salary for these working days in Sweden.

See our guide to the Danish tax assessment notice

See our guide to the Swedish income tax return

 

Do you have questions about tax and remote work?

If you are unsure how the rules apply to your situation, you can contact the experts from Skatteverket at Øresunddirekt for guidance.

Contact Øresunddirekt