A STATUTORY DEFINITION OF PERMANENT STAY IN SWEDEN

Permanent stay is one of three grounds for unlimited tax liability in Sweden, alongside residence and essential ties. The term is currently undefined in the Income Tax Act. Under preparatory works and HFD case law, a continuous stay of six months or more is in principle regarded as permanent, while shorter stays are assessed based on their length, extent and regularity. The assessment has proven unpredictable: temporary interruptions are counted into the stay, recurring stays each shorter than six months can qualify, and a person can be regarded as staying permanently in Sweden even in years when they spend fewer days in Sweden than abroad.

Under the proposal, a person shall be considered to stay permanently in Sweden if the person spends more than 160 days in Sweden during a calendar year, or more than 120 days if the number of days also exceeded 120 during the preceding calendar year. Only days in connection with which the person stays overnight in Sweden count. The definition applies to all provisions of the Income Tax Act in which the term appears, replacing the current case-by-case assessment with an objective day-count rule to increase predictability for cross-border commuters, holiday-home owners and their employers.

The amendments are set to come into effect on 1 January 2027, with 2027 being the first applicable calendar year. Stays before that date will be assessed under current principles, though days of stay during 2026 are taken into account when applying the 120-day rule for 2027. The bill awaits parliamentary consideration during the autumn of 2026, subject to the final outcome of the Swedish general election and the new government.