Background & Purpose

Tax agreements between Sweden and Denmark require specific regulations to ensure fair tax collection when individuals live in Denmark but work for businesses operating in Sweden.

The Decision

The Swedish parliament decided to update income tax rules for non-residents. Under certain conditions, work performed in Sweden by residents of Denmark will now be taxed in Sweden, including staff hired through temporary employment agencies.

Does this affect you?

  • Cross-border workers living in Denmark: Subject to updated Swedish taxation rules when working for Swedish or foreign employers.
  • Staffing and recruitment agencies: Must follow Swedish income tax requirements when leasing personnel residing in Denmark to work in Sweden.

In Practice

  • People living in Denmark who work for Swedish or foreign companies will face updated Swedish tax conditions.
  • The updated rules ensure that staff leased through recruitment or staffing agencies are taxed appropriately.
  • The adjustments mainly affect commuters living in Denmark due to the bilateral Swedish-Danish tax agreement.
  • The updated tax rules officially apply from July 1, 2025.