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Tax Residency in Sweden – How to File Taxes in 2025
Tax Liability in Sweden – The Basics
In Sweden, everyone who earns income in the country is subject to taxation – regardless of whether they are self-employed or employed.
How and where you pay tax depends on your tax residency status – whether you are considered a resident or a non-resident for tax purposes.
Who Qualifies as a Tax Resident in Sweden?
According to Skatteverket, a person becomes a tax resident in Sweden if they meet at least one of the following conditions:
- They have a permanent home in Sweden.
- They stay in Sweden continuously for at least six months.
- They have strong personal or economic ties to Sweden – such as family, a home, a business, or a stable source of income.
Those who do not meet these criteria are subject to limited tax liability and may pay tax under a simplified system known as the SINK tax (Special Income Tax for Non-Residents).
The SINK Tax in Sweden – For Whom and How It Works
SINK is a flat-rate income tax for individuals working in Sweden on a temporary basis – for example, seasonal work, remote work, or short-term assignments.
- The SINK rate is 25%, deducted directly from gross income.
- There is no requirement to file an annual tax return.
- No deductions or allowances are permitted under SINK.
However, a non-resident can opt out of SINK and choose the standard income tax system instead. In that case, they file taxes as a Swedish tax resident and may claim deductions and potential refunds.
Income Tax for Tax Residents in Sweden
Individuals with unlimited tax liability (residents) must declare and pay tax on worldwide income – income earned both in Sweden and abroad.
Swedish residents pay two main types of income tax:
- Municipal tax (kommunalskatt) – set by the local municipality, averaging around 32%.
- State income tax (statlig skatt) – applies to income above approximately SEK 613,900 per year (in 2025).
VAT and Business Taxes in Sweden
Entrepreneurs operating in Sweden must register with Skatteverket and regularly report and pay taxes, including:
- VAT (moms) – 25%, 12%, or 6%, depending on the goods or services provided.
- Business income tax.
- Employer’s social security contributions (arbetsgivaravgifter) – if employees are hired.
Businesses must also maintain proper bookkeeping and documentation in accordance with Swedish tax law.
The Five-Year Rule for Former Swedish Residents
A person who has been a Swedish tax resident for an extended period may still be considered a Swedish tax resident for up to five years after leaving the country, if Skatteverket determines that they maintain significant ties to Sweden – such as property ownership, family, or an ongoing business.
Tax Resident or Non-Resident – Which Is Better?
Whether it is more beneficial to be a tax resident or non-resident in Sweden depends on your situation.
Short-term workers often benefit from the simplicity of the SINK system, while long-term employees, business owners, and permanent residents usually gain more by being taxed as residents – gaining access to deductions, tax credits, and social benefits.
Before deciding on your tax status, it is always best to consult a professional advisor.
Contact Revea – we can help you determine which option is most advantageous for you: +46 (0)8 678 18 40 • info@revea.se
Why Tax Residency Matters in Sweden
Your tax residency status in Sweden determines where and how you pay taxes.
Understanding the rules on SINK tax, residency, and current tax rates will help you avoid mistakes and penalties from Skatteverket.
Strategic tax planning is the foundation of safe and sustainable business operations in Sweden.
Want to know more about Swedish taxation, VAT, or company registration?
Contact us via revea.se/contact – our experts will guide you through every step of your tax and business process in Sweden.