Swedish Government Moves to Cut Taxation of Non-Residents

Sweden’s government plans to reduce taxation of non-residents receiving Swedish pensions or short-term employment compensation, the country’s finance ministry announced Wednesday.

The rate of the special income tax for non-residents, known by its SINK acronym, would be reduced in two stages: from the current 25% to 22.5% in 2026, and then to 20% in 2027.

• The reduction would benefit almost 90,000 individuals and lower Sweden’s annual tax revenue by 340 million Swedish krona ($36.4 million) in 2026 and 680 million Swedish krona annually from 2027 onward.
• “It is not reasonable that Swedes who live abroad, and who ...