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An overview by Skeppsbron Skatt, Taxand Sweden
The Ministry of Finance has recently published a legislative referral proposing that the Swedish Income Tax Act should include a statutory definition of the concept of permanent stay, an issue that may have significant tax implications. Under current law, permanent stay is one of three grounds for unlimited tax liability, meaning individuals could be taxed on their worldwide income. However, the lack of a clear statutory definition has meant the concept has largely been shaped by case law, often leading to uncertainty and complex assessments.
Under the proposal, individuals would be deemed to have a permanent stay if they spend more than 160 days in Sweden in a calendar year. Shorter but repeated stays may also qualify, for example, where an individual spends more than 120 days in Sweden in consecutive years.
Tax experts Pernilla van der Capellen and Alexandra Nord from our Swedish member firm, Skeppsbron Skatt, analyse the details of the referral and the impact on international mobile individuals, cross-border workers, and those spending extended periods in Sweden for personal reasons, which you can read here.
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