Tax rules for Øresund commuters to be simplified

Danish employees and students commuting to Sweden will benefit from simplified tax regulations under a revised Øresund Agreement, aiming for implementation in 2025. The adjustments, which will be the first since 2003, are intended to streamline an integrated labor market between Denmark and Sweden. The reform focuses on four key changes, including uniform taxation for publicly employed commuters akin to the private sector, where telework is taxed in the country of work if it’s less than 50% over three months. Additionally, adjustments will ensure Denmark can tax recipients of Danish student grants (SU) regardless of residence in Denmark or Sweden, addressing the current disparity with tax-exempt Swedish grants. Pension schemes are also being considered under the new agreement. Approximately 17,000 individuals commute from Sweden to Denmark, and around 1,400 in the opposite direction annually.