Do you live in another Nordic country and work in Sweden for a public sector employer?
This applies to you who lives in another Nordic country who work in Sweden for a public sector employer. The information deals only with taxation of your income from this work.
Definition of "public sector employer"
You are deemed to have a public sector employer when you are employed by the central government, regional or municipal authorities or a public law institution, or an equivalent administrative authority in the other Nordic countries. State universities and university colleges in the Nordic countries except Finland are deemed to be public sector employers. The Finnish universities are deemed to be private employers. Companies owned by the state or a municipality etc. are not regarded as public sector employers. Nor will the state, municipality etc. be regarded as a public sector employer if the business in question is a commercial undertaking.
If you do not have a public sector employer, you will be taxed according to the rules described in "Do you live in another Nordic country and work in Sweden for a private sector employer?"
Swedish public sector employer
If you work in Sweden for a Swedish public sector employer, your salary will be taxed in Sweden. If you perform all or part of your work in your country of residence, your income from this part of the work will normally be taxable in your country of residence.
Public sector employer resident in another Nordic country
If you work in Sweden for a public sector employer who is resident in another Nordic country, your salary will normally be taxable in the employer's country of residence.
Taxation in Sweden
Limited liability for tax
You must pay special income tax for persons resident abroad (SINK) on your income from work if you do not have essential connections with or stay permanently in Sweden but are working temporarily in Sweden. If you do not stay overnight in Sweden but commute daily from another country you also have limited liability for tax even if the work is not temporary.
SINK is a final tax at source of 25 per cent. Your Swedish public sector employer will make a tax deduction directly from your gross wage. No deduction for costs is allowed and the income does not have to be declared in Sweden. You or your public sector employer applies for SINK taxation from the Swedish Tax Agency on form SKV 4350.
Instead of paying SINK it is also possible to be taxed in accordance with usual tax rules and to claim deductions for one's costs. However, certain conditions have to be fulfilled before claiming, for example, the basic allowance in Sweden.
Unlimited liability for tax
You may have unlimited liability for tax because you have previously been resident in Sweden and still have essential connections here. You may also have unlimited liability for tax if you stay overnight in Sweden so much that there is a question of permanent residence.
You are taxed on your income from your public sector employer in accordance with the usual rules and pay local and state income tax on your income from employment. You must submit an income tax return in Sweden.
Your public sector employer will deduct tax from your wages. If your employer asks you to show an "A"-tax certificate you can order one from the Swedish Tax Agency.
Taxation in the country of residence
The income may also be taxed in your country of residence, i.e. in the country where you live. Should you be taxed both in Sweden and in the country where you are resident the double taxation should be eliminated by your home country. You shall therefore always report your income from abroad in the income tax return in your home country.
Cross-border commuters are persons resident in Norway or Finland in a municipality bordering on Sweden who work in a border municipality in Sweden. Special rules apply to cross-border commuters. If you are a cross-border commuter, your income from employment will only be taxable in your country of residence. A condition for this is that you stay regularly at least two days a week (spending one night) at your permanent address in Norway or Finland.