What Is the Swedish Non Resident (SINK) Tax?

It is rather well known that Sweden is a high-tax country. But this does not necessarily apply to individuals coming to Sweden to work for a limited time. Sweden offers a special and often highly beneficial tax regime for non-tax residents, known as the SINK tax, where employment income can be taxed at a flat rate as low as 20%. The rate was recently lowered, making Sweden significantly more attractive for short-term foreign workers — provided the situation is structured correctly.

Can I Get the Swedish Non-Resident (SINK) Tax?

Sweden divides all individuals into two categories for tax purposes. Either you are a tax resident or a non-tax resident. Tax residents are liable to tax on their worldwide income, with high tax rates applying to employment income, typically in the range of 30–55%.

On the other hand, non-tax residents with employment income from working in Sweden are subject to the Swedish non-resident tax regime. This tax is known as the SINK tax.

Determining Whether You Are a Tax Resident or Non-Tax Resident

In order to determine whether you qualify for SINK taxation, it must first be established whether you are a tax resident or a non-tax resident. As a main rule, persons staying in Sweden for less than six consecutive months are regarded as non-tax residents. However, the exceptions are many. If you commute to Sweden on a regular basis, it could be enough with just a couple of nights spent in Sweden per week to become tax resident.

As an example, a person coming to work in Sweden for two months and subsequently returning to their home country would, in most instances, be regarded as non-tax resident in Sweden and thus eligible for the Swedish non-resident (SINK) tax.

How Is Income Taxed Under the Swedish Non-Resident (SINK) Tax?

In contrast to the taxation of Swedish tax residents, the SINK tax is a flat tax.

SINK Tax Rate 2026 and 2027

The applicable rate is 22.5% for income year 2026. The rate is scheduled to be lowered to 20% from income year 2027. Before 2026, a 20% rate was applied.

This implies that the person in our example above, who comes to Sweden to work temporarily for two consecutive months, would be subject to tax at this flat rate on their employment income attributable to work performed in Sweden.

Are Deductions Allowed Under SINK?

As a main rule, no deductions are allowed under the SINK tax. However, there are some exceptions. One may receive tax-free housing and tax-free travel to and from Sweden if certain conditions are met. Also, following legislative changes in 2023, there are possibilities to receive tax-free per diems, provided that the relevant requirements are fulfilled.

Besides tax on employment income, pension payments from Swedish sources are also subject to the SINK tax. In some cases, a tax treaty provision may apply so that Sweden is not allowed to levy SINK tax. This would have to be claimed in a specific SINK application, typically drafted by a lawyer.

Will I Be Subject to Double Taxation — SINK Tax in Sweden and Tax in My Home Country?

In many situations, a person taxed under SINK will also be liable to pay tax in their home country. This means that the same income could be taxed in both Sweden and the other state.

In order to solve this, the provisions of an applicable tax treaty or a domestic foreign tax credit rule should be applied. Generally speaking, the result is that the person’s home country grants a credit for the Swedish SINK tax when calculating the individual’s tax liability there.

Some tax treaties instead provide that the home country must exempt the income earned in Sweden from taxation. However, every tax treaty is unique and must therefore be properly assessed by a professional in order to determine how double taxation is avoided.

How Do I Obtain the Non-Resident (SINK) Tax?

In order to benefit from the regime, an application for SINK taxation must be filed. This is normally done by a Swedish tax lawyer, such as us at nomadtax. In the application, the lawyer argues for the applicability of the regime, meaning that the lawyer demonstrates that the individual is in fact a non-tax resident.

At present, the Swedish Tax Agency (Skatteverket) has rather long processing times for SINK applications. Accordingly, the application process should be initiated as early as possible.

If SINK taxation is granted, a decision will be issued stating that the employer is obliged to withhold the SINK tax (at the applicable rate) from the part of the salary attributable to work performed in Sweden.

Employer Obligations

It should be noted that the employer of an individual subject to SINK tax is obligated to be registered as an employer with the Swedish Tax Agency and to file monthly PAYE reports.

Does Sweden Apply the 183-Day Tax Rule?

For a non-tax resident, there is a possibility that income from working in Sweden is entirely exempt from Swedish tax. This stems from the so-called 183-day rule, which is an exception to SINK taxation contained in the SINK legislation.

Conditions for the 183-Day Rule

In order to qualify, a number of conditions must be fulfilled:

Non-Tax Residence in Sweden

The applicant must be regarded as non-tax resident in Sweden.

Less Than 183 Days of Presence

The applicant must stay in Sweden for less than 183 days during any rolling 12-month period.

No Permanent Establishment of the Employer in Sweden

The applicant’s employer must not have a permanent establishment in Sweden.

No Hiring-Out of Labour

The applicant must not be hired out to another business by their employer.

Legal Assessment of the Conditions

To determine whether these conditions are met, a lawyer would examine the individual’s pattern of stay in relation to the first two criteria. For the latter two, the lawyer must assess the employer’s tax position in Sweden, which can be complex in certain cases.

In particular, the fourth criterion; whether the individual is hired out; is a relatively recent requirement, introduced together with the so-called economic employer concept in Swedish tax law. A thorough legal analysis must therefore be carried out with reference to Swedish preparatory works and case law.

In some situations, a lawyer can help structure a project in Sweden in a tax-efficient manner so that the 183-day rule applies to employees coming to Sweden. This can provide significant relief for both employees and employers, as the employees would only pay tax in their home country and the employer would not be required to handle Swedish registrations and reporting obligations.

Need Advice on Working in Sweden?

Are you in need of tax advice for upcoming work in Sweden? We at nomadtax, led by LL.M. Felix Schöttle, have extensive experience advising non-Swedish individuals and businesses on Swedish tax law, including optimization strategies aimed at lower taxes, reduced compliance obligations, and smoother operations. Feel free to contact us to learn more about how we can assist in your specific situation.

Disclaimer: This article is intended to provide general information only and does not constitute legal or tax advice. The application of Swedish tax law depends on the specific facts and circumstances of each case, and professional advice should always be obtained before taking action based on the information provided above.