Tax rule hinders working in Denmark

An EU rule is making it hard for people in southern Sweden to get work in Denmark.

The rule forces Danish employers to pay Swedish payroll tax for people who live in Sweden but who work on both sides of the Öresund strait. With Swedish payroll tax at 33 percent of wages, this is making Swedes unattractive to Danish employers, Sydsvenskan reports.

The paper reported that the the rule is hitting the hospitality business and other industries that use lots of part time workers particularly hard.

Helsingö municipality in Denmark has had to pay a bill of 600,000 Danish kronor to the Swedish tax authority for healthcare employees who also work in Sweden, the paper reports.

Many people from southern Sweden have in recent years sought work in Denmark, which has record low levels of unemployment.