Worked in Sweden during 2025? Here is what you need to know about filing a Swedish income tax return

If you worked in Sweden during 2025, you may nevertheless be required to submit a Swedish income tax return to the Swedish Tax Agency, even if this was your first year in Sweden. The ordinary deadline to submit the income tax return is 4 May 2026. However, if you engage BDO to assist you with your tax return, an extension of the filing deadline to 15 June 2026 can be requested. If the income tax return is filed after the mentioned dates, the Swedish Tax Agency may impose a penalty fee of SEK 1,250 due to late filing. 

Below, BDO Sweden outlines when a filing obligation arises, examples of income that may need to be reported, and why it is important to be proactive when preparing your Swedish income tax return.

If you have been living and working in Sweden for a period exceeding six months, you are generally considered to be tax resident in Sweden. This also entail that your worldwide income is subject to tax in Swedish and must be declared in your 2025 Swedish income tax return. It is important to note that you may be considered a tax resident in more than one country at the same time. In such cases, applicable tax treaties that Sweden is a part of may limit Sweden’s right to tax a specific income. However, any tax relief or treaty protection must be actively disclosed and claimed in your Swedish income tax return.

 

Employment Income

Depending on where you are considered to have your tax treaty residence, certain employment income may be exempt from Swedish taxation if the income was earned while working abroad or can be attributed to work performed in another country. It is therefore important to carefully keep track of when and where your work was carried out, as well as how the applicable tax treaty provisions apply to your specific situation.

Furthermore, employer-funded contributions to pension schemes, insurance policies, and other benefit arrangements must be reviewed and classified from a Swedish tax perspective to determine whether contributions made during 2025 constitute taxable employment income or tax-deferred pension contributions.

 

Life insurance policies

If you have a foreign (non-Swedish) life insurance policy, it might not be taxed the same way in Sweden as in your home country. 

The policy must be reviewed and classified under Swedish tax rules as either pension insurance or capital insurance (i.e. non-pension life insurance), as the tax treatment differs. Both are subject to a relatively low annual yield tax (Sw: avkastningsskatt), to be declared and paid by the Swedish resident policyholder. In addition, pension insurance payouts are generally taxable, whereas capital insurance payouts are typically tax-exempt.

 

Investment funds  

Additionally, if you held investment funds as a Swedish tax resident on 1 January 2025, these must be reported for Swedish tax purposes. Fund holdings are subject to annual taxation based on a standardized amount corresponding to 0.4% of the fund’s value as of 1 January, to be declared as capital income.

 

Possible tax deductions in the income tax return

When preparing a Swedish income tax return, it may be relevant to review whether you qualify for any tax deductions that could reduce your overall tax liability. Depending on your individual circumstances, the following deductions may be applicable:

• If you have paid interest costs abroad, or in Sweden, you can be entitled to deduct the costs and receive up to 30 % of the paid interest as a tax refund.
• Temporary stays and assignments in Sweden could mean that you have double households, one in Sweden and one in your home country. You could qualify for a deduction for double housing in your Swedish income tax return, depending on your situation.
• If you hold a valid A1 certificate and remain part of your home country’s the social security system, mandatory employee social security contributions paid by you as employee abroad may be deductible in your Swedish income tax return.
• Being assigned to Sweden could also make you qualify for a deduction for increased living costs. There are different standardized daily rates, which can be deducted, depending on your specific situation.  
• Costs for travel to your home country may, in certain situations, be deductible if you have kept a home available to you in your home country.
• Travel costs between your home and place of work may, subject to certain conditions, be deductible. Generally, individuals may claim a deduction for travel costs exceeding a standard threshold of 11,000 SEK per year (threshold to be raised to SEK 15,000 from 1 January 2027).

Although there are a variety of possible deductions, BDO Sweden emphasizes that incorrect or unjustified deductions may result in a tax surcharge of up to 40% of the additional tax assessed. Therefore, we highly recommend that you ensure that you qualify for the possible deductions before they are included in your income tax return. 

 

Concluding remarks

Preparing a Swedish income tax return following an international move often involves complex assessments, including tax residency, treaty application and the correct classification of income and assets. Ensuring that the tax return is prepared accurately and in accordance with applicable rules from the outset can help reduce the risk of errors, additional tax assessments or penalties.

BDO Sweden assists individuals in international situations with the preparation and review of Swedish income tax returns, including residency assessments and treaty‑based positions. If you would like personalised assistance with your Swedish income tax return, please do not hesitate to contact BDO’s tax advisors.