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TaxInformation:GoingtoSweden
TaxResidenceStatusGenerally,anindividualisconsideredaresidentofSwedenforpurposesofSwedishindividual
incometaxationiftheyhavearealhomeinSweden.Aperson,whostayspermanentlyinSweden,is
alsoconsideredresidentofSweden.TherearenoexplicitrulesinSwedishtaxlawgoverningwhat
wouldconstituteconsecutiveandpermanentstayinSweden.However,theSwedishTaxAgencys
opinionisthatanindividualwhoregularlystaysovernightinSwedeninaconsecutivesixmonth
periodshouldbeconsideredresidentinSweden.Itshouldbenotedthatanindividualcouldbe
deemedto
stay
here
regularly
even
if
the
individual
spends
more
nights
abroad
than
in
Sweden.
ApersonthathaspreviouslybeenlivinginSwedenandkeepsessentialtiestoSweden,suchase.g.a
house,familymembers,businessand/orsubstantialinvestmentsaftermovingfromSwedenisalso
consideredasataxresidentofSweden.Generally,theburdenofproofisontheindividualto
substantiatetheirnonresidentstatusforthenextfiveyearsfollowingdeparture.
AnindividualmaybeconsideredtaxresidentinSwedenandinanothercountryatthesametime.
ForSwedishtaxpurposes,residenceinanothercountrydoesnotaffectSwedishresidence.
However,ifSwedenhasataxtreatywiththeothercountrythatclaimsresidence,taxreliefmaybe
available.In
addition,
Swedish
domestic
tax
law
allows
relieve
to
avoid
double
taxation
on
income.
SwedishtaxresidentsareliabletotaxinSwedenontheirworldwideincome.
ApersonthatcomestoSwedenwiththeintentionofstayingformorethansixmonthsshould
registerwiththeSwedishTaxAgencyfortaxpurposes.Anindividualwhointendstostayformore
thanoneyearshouldalsoregisterforpopulationpurposes.
TaxationofEmploymentIncomeSwedishtaxresidentsareliableforincometaxontheiremploymentincomeregardlessofwhereitis
derivedfrom.
The
cash
principle
applies
which
means
that
income
is
generally
taxable
upon
receipt.
Generallyallearnings,includingbenefitsinkind,fromanemployertoanemployeearereportable
2011IncomeTaxRatesTaxableIncome
BandSEK IncomeTaxRates*0383,000 31%
383,001 548,300 51%
548,301+ 56%
*Includestheaveragemunicipaltaxrate
Ataxfreepersonalallowanceofbetween
approximatelySEK12,600andSEK33,000maybe
available.
Theratefordividendsis30%
TaxAuthority:TheSwedishTaxAgencyWebsite:www.skatteverket.se
TaxYear:1Januaryto31DecemberTaxReturnduedate:2MayIsjointfilingpossible:NoAretaxreturnextensionspossible:Yes
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andtaxableasincomefromemployment.Taxableincomeisforexample:salary,bonuspayments,
allowances,stockoptionsandhousingbenefits.Thetaxratesrangesfrom31%andupto
approximately5658%(dependingonmunicipality).
Somedeductionsareavailableagainstemploymentincome.
Theseareforexample:deductionsfor
commutingcost,
increased
cost
of
living,
home
trips
to
another
EU/EEA
country,
alimony
paid
to
a
formerspouseanddeductionformandatorysocialsecuritychargespaidinthehomecountry.A
personalallowanceofSEK12,600toSEK33,000isalsoavailableaswellasataxreductionfor
employmentincomeofapproximatelySEK22,000.
AnindividualwhoisnonresidentinSwedenandderivesincomewithrespecttoservicesrenderedin
SwedenmaybetaxedaccordingtotheSpecialIncomeTaxAct(SINK).Nonresidentswhoqualifyfor
taxationaccordingtoSINKpayafinalnationalincometaxof25percentatsource.Nodeductionsare
allowed.InordertobetaxedaccordingtotheSpecialIncomeTaxAct,thenonresidentindividualor
theemployermustapplyforthe25percentconcessionwiththeSwedishTaxAgencypriortothe
payment.
TaxationofPersonalIncomeIndividualsconsideredastaxresidentsofSwedenareliableforincometaxonworldwidecapital
incomesuchasinterestincomefrombanksavings,dividendsandcapitalgainsfromthesaleof
financialinvestments,realestateorotherassets.Incomefromcapitalistaxedataflatrateof30
percent.Incomereceivedfromtheleaseofaprivatedwellingwouldalsobeconsideredastaxable
capitalincomeinSweden.Standarddeductionsarehoweveravailableagainstrentalincome.
Interestcost
paid,
including
credit
card
interest,
and
capital
losses
are
in
principle
deductible
against
capitalincome.ForeignlifeinsurancesaresometimessubjecttoyieldtaxinSweden.
TaxationofCapitalGainsSwedendoesnothaveaseparatecapitalgainstaxregime.Capitalgainsaretaxedascapitalincome.
Generally,theamountofthegainisthedisposalproceedslesstheacquisitioncostoftheassets.
However,themethodforcomputingthegainvariesdependingonthetypeofcapitalgainrealized.
Forindividuals,acapitalgainonthenonprofessionaldisposalofarealpropertyistaxedascapital
income.Capital
gain
on
the
sale
of
real
property
is
afforded
amore
beneficial
tax
rate
than
other
capitalincomeandistaxableataneffectivetaxrateof22percent(therearesomeexceptionstothis
andyoushouldalwaysconsultaprofessionalwhendisposingrealproperty).
Allcapitallosses,withtheexceptionoflossesonpersonalassets,aredeductibleinthecategory
incomefromcapitalforaresidenttaxpayer.
TaxReturnComplianceASwedishtaxresidentisliabletofileanincometaxreturnforeachincomeyearthattheyareatax
residentofSweden.InsomecasesanontaxresidentisalsoliabletofileataxreturninSweden.
