Sweden-Public

Basic taxes (briefly)

Personal tax 20-52%
Corporate tax (in detail) The income tax rate is 20.6%
Capital gains tax. Details
VAT. Details The standard VAT rate is 25%. Reduced rates of 12% and 6% apply to some goods and services
Other taxes Social contributions, Property tax, Commercial property tax
Government fee No
Stamp duty For real estate transactions - 4.25%

International tax agreement

Albania, Antigua and Barbuda, Argentina, Armenia, Australia, Austria, Azerbaijan, Bangladesh, Barbados, Belarus, Belgium, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Bulgaria, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Egypt, Estonia, Former Yugoslav Republic of Macedonia, France Gambia, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Kazakhstan, Kenya, Korea (Republic of), Latvia, Lithuania, Luxembourg, Malaysia, Malta, Mauritius, Mexico, Montenegro, Namibia, Netherlands, New Zealand, Nigeria, Pakistan, Philippines, Poland, Portugal, Romania, Russian Federation, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Switzerland, Tanzania, Thailand, Trinidad and Tobago, Tunisia, Turkey, Ukraine, United Kingdom, United States, Vanuatu, Venezuela, Viet nam, Zambia, Zimbabwe
   
Andorra, Anguilla, Antigua and Barbuda, Aruba, Bahamas, Bahrain, Belize, Bermuda, Brunei Darussalam, Cayman Islands, Cook Islands, Costa Rica, Curaçao, Denmark, Dominica, Faroe Islands, Finland, Gibraltar, Greenland, Grenada, Guatemala, Hong Kong, Iceland, Isle of Man, Jersey, Liberia, Liechtenstein, Macao (China), Marshall Islands, Monaco, Montserrat, Niue, Norway, Panama, Qatar, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, San Marino, Seychelles, Sint Maarten, Turks and Caicos Islands, United Arab Emirates, Uruguay, Vanuatu, Virgin Islands (British)


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Personal Income Tax

Tax residents generally pay tax on their worldwide income. Non-residents pay tax on income from sources in Sweden.

Employment income tax is levied at both national and municipal levels. The national tax rate is 20%, with exemption for the first SEK 540,700 of income. The average municipal tax rate is 32%.

Non-residents pay tax on employment income at the rate of 25%.

Gains from the sale of assets and current investment income (dividends, interest, and rental income) are taxed at the rate of 30%.

Gains from the sale of unlisted shares are taxed at the rate of 25%.

Profits from the sale of private real estate are taxed at the rate of 22%.

Corporate Income Tax

Swedish companies pay corporate income tax on their worldwide income, while foreign companies pay tax on income from sources in Sweden.

The corporate income tax rate is 20.6%.

Profits from the sale of business assets are usually tax exempt.

Unlisted shares of Swedish companies are generally considered a business asset. Listed shares can be considered a business asset if at least 10% of shares has been held for at least a year.

The exemption, in general, also applies to shares of a foreign company equivalent to a Swedish limited liability company.

Dividends on shares treated as a business asset are not taxed. The exemption does not apply to dividends deducted for corporate income tax purposes at the distributing company.

CFC Rules

A foreign company is considered a controlled foreign company if a resident holds, directly or indirectly, individually or jointly with related parties, at least 25% of its capital or voting rights, and if such company is taxed at a low rate (lower than 11.33%, i.e. less than 55% of the Swedish corporate income tax rate).

CFC rules may not apply to whitelisted companies, but there are restrictions on the types of income to which the exemption can be applied.

CFC rules may not apply to active EEA companies.

Withholding Tax

Dividends paid are taxed at the rate of 30%.

Royalties are considered a business income generated through a permanent establishment in Sweden and are subject to corporate income tax at the rate of 20.6%.

Interest payments are exempt from withholding tax.

Tax rates can be reduced under double tax treaties and EU directives.

VAT

The standard VAT rate is 25%.

Some goods and services are subject to the reduced VAT rates of 12% and 6%.

Social Security Contributions

Employers pay social security contributions at a general rate of 31.42% of the employee's remuneration. Employers also pay 24.26% tax on premiums to professional pension funds.

Employees pay a pension contribution at the rate of 7% of the remuneration up to SEK 550,400, however, this payment is credited against income tax, i.e. effectively, the employee's contribution is usually nil.

Property Tax

Property owners pay 0.75% tax on the taxable value of their residential property, but not more than SEK 8,437. No tax is levied on overseas property.

Commercial Property Tax

The tax is usually paid at the rate of 1%.

For industrial property, the tax rate is 0.5%.

Stamp Duty

Real estate transactions are subject to 4.25% stamp duty.

Double tax agreements

Sweden participates in various international tax mechanisms, including:

82 DTCs: Albania, Antigua and Barbuda, Argentina, Armenia, Australia, Austria, Azerbaijan, Bangladesh, Barbados, Belarus, Belgium, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Bulgaria, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Egypt, Estonia, Former Yugoslav Republic of Macedonia, France Gambia, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Kazakhstan, Kenya, Korea (Republic of), Latvia, Lithuania, Luxembourg, Malaysia, Malta, Mauritius, Mexico, Montenegro, Namibia, Netherlands, New Zealand, Nigeria, Pakistan, Philippines, Poland, Portugal, Romania, Russian Federation, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Switzerland, Tanzania, Thailand, Trinidad and Tobago, Tunisia, Turkey, Ukraine, United Kingdom, United States, Vanuatu, Venezuela, Vietnam, Zambia, Zimbabwe.

47 TIEA: Andorra, Anguilla, Antigua and Barbuda, Aruba, Bahamas, Bahrain, Belize, Bermuda, Brunei Darussalam, Cayman Islands, Cook Islands, Costa Rica, Curaçao, Denmark, Dominica, Faroe Islands, Finland, Gibraltar, Greenland, Grenada, Guatemala, Hong Kong, Iceland, Isle of Man, Jersey, Liberia, Liechtenstein, Macao (China), Marshall Islands, Monaco, Montserrat, Niue, Norway, Panama, Qatar, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, San Marino, Seychelles, Sint Maarten, Turks and Caicos Islands, United Arab Emirates, Uruguay, Vanuatu, Virgin Islands (British).

Exchange Control

Sweden has no exchange control.

    Taxes of Sweden

    Min. rate for corporate tax 20,6%
    Capital gains tax Regular rate
    VAT 25%
    Withholding tax 30%/0%/20,6%
    Exchange control No
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