SINK tax in Sweden for commuters from Denmark

What is SINK tax?

SINK (Special Income Tax for Non-Residents) applies if you live in Denmark and work in Sweden with limited tax liability.

It is a flat-rate tax on salary, pension and certain social benefits paid from Sweden. Other income, fx interest or capital income, is taxed in Denmark.

SINK is a gross tax with no deductions, and you do not need to file a tax return in Sweden.

You apply for SINK tax at the Swedish Tax Agency, and your application must be renewed each year.

SINK tax and taxation in Denmark

If you only work for a Swedish employer in Sweden, you will generally not be taxed on the same income in Denmark. However, you must report the income in your Danish annual tax assessment.

If you also work in Denmark, it may affect your social security status and how your Swedish income is taxed in Denmark. Contact Skattestyrelsen for an individual assessment.

If your work in Sweden requires or allows you to work remotely from Denmark, special tax rules apply.

See our page about working remotely from Denmark

Full or limited tax liability in Sweden 

If you work in Sweden and stay overnight regularly, you may be considered fully taxable in Sweden, especially if your employment lasts six months or more.

In that case, you pay ordinary Swedish income tax under the same rules as residents in Sweden, and you cannot be taxed under the SINK scheme.

If you live in Denmark and commute daily to work in Sweden, you generally have limited tax liability.

Read about full and limited tax liability on skatteverket.se

SINK or income tax – what should you choose?

If you commute from Denmark to work in Sweden, you can choose to be taxed under the SINK scheme or under ordinary Swedish income tax rules.

If you choose ordinary income tax, you must submit a Swedish tax return each year.

As a resident in Denmark, you cannot claim deductions for interest expenses in Sweden under Danish rules.

Contact Skattestyrelsen for questions regarding Danish rules on deduction of interest rates

Working as a performing artist or a sportsperson

If you work as a performing artist or sportsperson in Sweden, you are taxed under special rules with A-SINK at 15 %.

Under the Nordic tax agreement, you may also have to pay additional tax in Denmark.

Contact Skatteverket about A-SINK and tax rules

Apply for SINK tax

More information and application forms are available on the Skatteverket website.

Find application for special income tax for non-residents on skatteverket.se