This paper explores the legal concept of permanent residency within the framework of Swedish taxation law. The term "permanent stay" lacks an explicit definition in the Swedish Income Tax Act, resulting in interpretational issues for both authorities and individuals. Permanent residency is closely linked to the principles of residence-based and source-based taxation, which determine an individual's tax liability in Sweden. The primary aim of this paper is to analyse the Swedish Tax Agency's new proposal for defining permanent residency and its potential implications for taxpayers. The proposal introduces a quantitative threshold for the number of days spent in Sweden, aiming to reduce the subjective assessments previously required.

The analysis reveals that the current evaluation of permanent residency is complex and inconsistent, creating uncertainty. The Swedish Tax Agency's proposal is expected to clarify the rules and make assessments more predictable by establishing clear thresholds for the number of days of stay. This could lead to more consistent application of tax legislation and reduce the risk of legal disputes. This paper contributes to a deeper understanding of the proposed legislation and its impact on taxpayers in Sweden, highlighting the importance of a clear and modern definition of permanent residency in a globalized world.