Taxation when working remote

What applies if you work from home?

The main rule is that you are taxed in Denmark if you work on site in Denmark, and in Sweden if you work on site in Sweden. You will never be double taxed. If you work exclusively in Denmark and your salary is taxed there, you will not be taxed on it in Sweden, but you will need to provide information about your foreign income in your Swedish tax return.

However, if you work at home in Sweden or on business trips in other countries for your Danish employer, part of your salary may be taxed in Sweden instead. This depends on whether you work for a private or public sector employer and the extent to which you work in each country.

What happens to the preliminary tax?

A Danish employer who has an employee working in Sweden must register as an employer with the Swedish Tax Agency, make a tax deduction of 30% of the salary for the days worked in Sweden and submit employer declarations to the Tax Agency every month.

If you work partly at home in Sweden but still fulfill the conditions of the Öresund agreement, you can apply for a preliminary tax exemption via the e-service Jämkning at skatteverket.se. Log in with your BankID and select the Jämkning e-service. Select the relevant income year and click on Apply for exemption under the Öresund agreement.

Go to the e-service Jämkning at skatteverket.se (in Swedish)

If you have an exemption under the Öresund agreement, your Danish employer does not need to register as an employer or make tax deductions from your salary for the working days in Sweden. The exemption applies throughout the income year, as long as the conditions of the Öresund agreement are met.

However, if you are a public employee or have a private employer but work in Denmark for less than 50% of each three-month period, your Danish employer must register as an employer in Sweden and deduct tax from your salary for working days in Sweden. The employer must deduct Swedish preliminary tax at either 30% of the salary, or as decided by the Swedish Tax Agency. To ensure that the preliminary tax is as close to the final tax as possible, you can submit an adjustment application, where you include the salary for the working days in Sweden. You will then receive a decision on the percentage your employer should deduct from your tax.

Read more on the Swedish Tax Agency website

What happens with social security?

Your social security affiliation is also affected by working from home. Where you are socially insured affects whether your income is pensionable in Sweden or not, and where your employer must pay employer's contributions.

Read our article on social security when working in both Sweden and Denmark

What to consider as a cross-border commuter in relation to taxation

1. If you are privately employed and intend to work on site in Denmark for at least 50 per cent of your working hours during each three-month period, apply for tax exemption in the e-service Jämkning at skatteverket.se.
   
   
2. Keep track of how many days you work at home in Sweden and on business trips in countries other than Denmark.
   
   
3. Contact the Danish Tax Agency to adjust your “Forskudsopgørelse” if you work at home in Sweden to such an extent that you will be taxed in Sweden. In this case, the employer should not simultaneously deduct Danish preliminary tax on the working days in Sweden.
   
   
4. When it is time to file your annual tax return, you can use the tool that the Danish Tax Agency publishes annually on its website to calculate whether the Öresund Agreement applies throughout the year.
   If the Oresund treaty is not applicable, or you are publicly employed and have worked remotely, you need to declare that part of your annual salary that responds to the remote work days in the Swedish annual tax return. If you belonged to Danish social security, you declare this salary in box 1.5, Other income that is not pensionable. Remember to convert the currency from to Swedish crowns, and write a comment explaining the income under section 18, Other information.
   If the Öresund treaty applies in your situation, you still need to inform about your total Danish salary in the Swedish annual tax return Inkomstdeklaration 1, under section 18.
   
   
5. If you work partly from home, you need to apply for an A1 certificate from the social security authorities. If you are covered by social insurance in Sweden, your entire salary must be pensionable in Sweden, and your Danish employer must pay Swedish employer's contributions.

If you need help in understanding the rules, please contact Øresunddirekt