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Information about working in Denmark while living in Sweden
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The new Öresund TaxAgreement

D. 1/6/2025
From January 1, 2025, a new tax agreement between Sweden and Denmark, the so-called Öresund Agreement, will apply. The agreement applies to taxes on income from the income year 2025, i.e. the income you declare in May 2026.
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The agreement contains news for those who commute between Sweden and Denmark. One important change is that the agreement applies regardless of whether you have a private or a public employer.

You will be taxed on your entire salary in the country where you normally work, if you work there for at least half of your working days in each 12-month period. For example, if you live in Sweden and work in Denmark, you will be taxed in Denmark. This also applies if you work remotely (for example, from your home) or elsewhere in Sweden, or if you are on temporary business trips outside your normal country of work, Denmark.

The Öresund Tax Agreement only applies if the salary does not burden a permanent establishment that your Danish employer has in Sweden.

If you do not meet the conditions of the Öresund agreement, taxation of your salary will be based on the number of active working time in each country. In other words, you pay tax in Sweden for the time you worked there, and you pay tax in Denmark for the time you worked there.

 

You do not need a decision on tax exemption

If you live in Sweden, work in Denmark and meet the conditions of the Öresund Agreement, i.e. you work at least 50% of your working hours during a 12-month period in Denmark, your Danish employer does not need to deduct tax in Sweden. You no longer need a tax exemption decision from the Swedish Tax Agency.

However, if you do not meet the conditions of the Öresund Agreement, your Danish employer is still obliged to register as an employer and deduct and report preliminary tax in Sweden on income from work in Sweden.

 

Other news in the Öresund Tax Agreement

The new Öresund Tax Agreement also introduces other rule changes.

If you live in Sweden and have pension savings in Denmark, you have previously been eligible for exemption from Danish pension yield tax (PAL tax). However, from 2025, you will have to pay this tax at a rate of 15.3%.

Another change is that if you live in Sweden and receive Danish student grants, SU, you will have to pay tax in Denmark on this income.

If you live in Denmark and receive a Swedish student grant, you will no longer pay tax on your student grant in Denmark.

 

Our websites are updated regularly

The new Öresund agreement is valid from 2025, and thus applies to income from 2025 and onwards. It will therefore not affect your annual statement and tax return for 2024, which is to be submitted in May 2025. For 2024, the previous Öresund Agreement from 2003 applies.

We will update the information on the Öresund Agreement once the new rules have entered into force in January 2025. We will also regularly update our articles with information on how it may affect you, how to count working days and how to deal with the 2025 tax return and annual tax return, due in 2026.

Read more about the new Öresund Agreement on the Swedish Tax Agency's website (in Swedish)

 

Read more about the new Öresund Agreement from 2025 on regeringen.se (in Swedish)

 

Read more in our article about the current Öresund Agreement valid for 2024

 

Read about the current Öresund Agreement on skat.dk (in Danish)

 

Read more about the current Öresund Agreement on skatteverket.se (in Swedish)

 

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