The Swedish tax system - a brief introduction
This information is for EU/EEA citizens only
Tax for commuters - SINK
If you are commuting daily between your residence in Denmark and your place of work in Sweden, you can apply to pay SINK tax (state income tax for non-residents) - a special gross income tax of 25 percent. On the other hand, you do not have deduction options. You must apply for SINK taxation every year before the end of the year - even if you have had it before.
Income tax in Sweden
You can, also as a commuter, instead of paying SINK tax, choose to pay income tax and so be taxed according to ordinary Swedish tax law. However, there are some conditions to be met, for example, you should have 90 percent of your total annual income in Sweden to be entitled to interest deductions in Sweden. You should be aware that the Danish tax rules can also affect your deductions.
Tax when working from home
You still pay tax in the country where the job is located (country of employment) - even if you occasionally work from home or another place in your home country, or on a business trip in a completely different country. However, it is a prerequisite that the working activities in the country of employment are at least 50 percent of the whole amount of working activities, in a period of 3-months, and that the work is performed for the same employer.
Taxation of a Swedish company car
If you commute and pay SINK tax, you pay 25 percent tax on your Danish or Swedish company car. On the other hand, if you pay ordinary Swedish tax, you pay tax on your company car at the tax rate your other income is taxed at.
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Paying tax - what to do when you get a job in Sweden
When you work in Sweden, you must pay tax in Sweden. You must have a “coordination number” (Samordningsnummer) from Skatteverket, which is the Swedish Tax Authority, in the municipality of your place of work, and you must also decide whether you want to pay "SINK tax" or ordinary Swedish tax.