Denmark and Sweden have agreed to revise the Øresund Agreement to make it easier for the workforce to commute between the two countries. The revised agreement includes, among other things, fewer administrative burdens for both commuters and employers, and it simplifies the current taxation rules.
Benefit for companies
Every year, about 17,000 people commute from Sweden to Denmark, and about 1,400 people commute from Denmark to Sweden. This is of great value to both countries. The opportunity to work across the Øresund Bridge increases mobility for commuters, while companies benefit from the enhanced ability to recruit qualified labor.
– We need the labor force of the commuters in Denmark. Therefore, this agreement will make it easier for employers to have employees who live on the other side of the strait. At the same time, we are cleaning up a number of tax rules that seem unreasonable and that put certain groups in a better position than people who live and work in Denmark, says Tax Minister Jeppe Bruus in a press release.
No negotiations with Germany
The exact same benefits are expected to apply to the labor market in the Femern Belt region when the Femern Tunnel opens for traffic. However, there is no Femern Belt agreement between Denmark and Germany, nor are there any immediate plans to create one.
“It is still too early to assess the potential need for a tax agreement in connection with the opening of the Femern connection. Therefore, there are currently no ongoing negotiations about a tax agreement with Germany similar to the Øresund Agreement,” states the Ministry of Taxation in a written response to FemernReport.
Over 13,000 commute between Denmark and Germany
Nearly 13,000 Germans currently commute to work in Denmark across the border in Southern Jutland. Traffic in the other direction is much more manageable. Just under 546 Danes commute to Germany for work, according to TV-Syd.
