Sweden’s Ministry of Finance announced, on 3 May, 2024, a significant update regarding permanent residency criteria for tax purposes.
Following the release of a memorandum by the Tax Agency in November, 2023, proposing a redefinition of permanent residence, the Ministry has initiated a public consultation process.
Under the proposed changes, an individual would be recognised as a permanent resident of Sweden if they spend more than 160 days in the country within a calendar year. Additionally, individuals staying over 120 days in a year, and having exceeded 120 days in the preceding year, would also qualify as permanent residents.
The Ministry also clarified the determination of permanent residence. If the conditions are met in a single calendar year, residency is considered permanent from the first to the last day of that year. If the criteria persist for two or more consecutive years, residency is deemed permanent from the initial day of the first year to the final day of the last year.
These adjustments are proposed to take effect on 1 January, 2025, with the aim of enhancing clarity and predictability in tax regulations.
The Ministry encourages public feedback on these proposed changes before their implementation.
