Sweden

Individual - Residence

Last reviewed - 06 July 2020

The following criteria can individually trigger taxable residence and taxation on the individual’s worldwide income:

  • Permanent stay/domicile.
  • Continuous stay exceeding six months.
  • Essential connection if the individual previously has been a Swedish tax resident.

Five-year rule

Swedish citizens, as well as foreigners who have been resident in Sweden for at least ten years, are deemed resident in Sweden for tax purposes until they can prove that all important ties with Sweden have been broken. Five years after a taxpayer leaves Sweden, the burden of proof is reversed and the tax authorities must prove that ties still exist between the individual and Sweden.

Six-month and one-year rule

Swedish residents who have been assigned to work abroad or who have taken up employment abroad with a planned duration of at least six months are not liable to Swedish income taxes on income from this employment, provided the income is taxed in the country of employment and the individual does not spend more than six days per month or a maximum of 72 days per 12-month period in Sweden. Part of a day counts as a full day in Sweden when counting the six days per month. Any income that is not taxed in the working country is normally taxed in Sweden. If the income is exempt from taxation in the working country under domestic legislation, the income can be tax exempt in Sweden if the stay abroad lasts for at least one year.