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Direct sale of real estate
RESIDENT INDIVIDUAL
Capital gains
Capital gains on real estate property are in general taxable at 22 % (27 % for commercial property). Acquisition price and improvement costs are deductible.
VAT / Stamp duty
The sale of real estate is not subject to VAT. The stamp duty is based on the higher purchase price and value assessed for tax purposes. It is 1.5 % if the buyer is an individual.
Deferral of tax
Deferral of tax is possible if some requirements are met. For example, if the sold real estate has been used as a permanent home and the seller buys a new permanent home for a higher price.
Losses
An individual is entitled to deduct 50 % of the loss for a private residential property and 63 % of the loss for a commercial property the same year as the loss arises. It is not possible to carry forward the loss. Carry back is not possible according to Swedish tax law.
NON-RESIDENT INDIVIDUAL
Non-resident individuals are treated in the same way as resident individuals.
RESIDENT COMPANY
Capital gains
Profits of the sale of Swedish real estate is subject to Swedish corporate income tax as business income. The profits are taxed against a flat tax rate of 20.6 % as of 2022. The corporate income tax on capital gains is based on the difference between the net sales proceeds and the book value.
VAT / Stamp duty
The sale of real estate is not subject to VAT. Stamp duty is due and based on the higher purchase price and value assessed for tax purposes. It is 4.5 % if the buyer is a company. It is the buyer of the property who is liable to pay the tax. However, the stamp duty can be added to the purchase price and together form the base cost of the asset and therefore be treated as an asset instead of a cost.
Losses
The losses realised on the sale of the real estate may be offset only against capital gains from real estate. Non-utilised tax losses can be carried forward indefinitely. Some restrictions may apply due to changes of ownership of the company.
NON-RESIDENT COMPANY
Non-resident companies are treated in the same way as resident companies since income generated from immovable property is taxable in Sweden.
Indirect sale
RESIDENT INDIVIDUALS
Capital gains
Capital income is subjected to 20-55 % capital gains tax.
VAT / Stamp duty
The transaction is not subject to VAT. No stamp duty is due for transfer of shares.
Losses
Losses can be credited against capital gains. However, there are some restrictions, e.g. if the individual has a deficit of capital, the total tax is reduced by 30 % of the part of the deficit that does not exceed SEK 100.000 and by 21 % of the remaining deficit.
NON-RESIDENT INDIVIDUAL
Non-resident individuals are treated in the same way as resident individuals. However, the tax treaty has to be considered.
RESIDENT COMPANY
Capital gains
The sale of shares is generally not subject to tax if the shares are unlisted or the mother-company holds more than 10 % of the shares (participation exemption). If the shares do not meet the participation exemption the capital gain will be part of the company’s turnover which is subject to Swedish corporate income tax at the tax rate of 20.6 % as of 2022.
Losses
Losses arising on the sale of shares covered by the participation exemption are not tax deductible.
If the shares are not covered by the participation exemption a loss can be offset against capital gains from shares and similar instruments. Losses of a Swedish company can in general be carried forward indefinitely and offset in total against future profits of this company. However, there are some limitations that can occur due to changes of ownership.
VAT / Stamp duty
The transaction is not subject to VAT and not subject to stamp duty.
NON-RESIDENT COMPANY
Non-resident companies are in general treated in the same way as resident companies. The regulations of the tax treaty have to be considered.
Direct transfer intra concern (Swedish real estate to swedish company)
RESIDENT COMPANY
Capital gains
Any profits of the sale of Swedish real estate is subject to Swedish corporate income tax as business income. The profits are taxed against a flat tax rate of
20.6 % as of 2022.
VAT / Stamp duty
The sale of a property is not subject to VAT.
All transactions on land and buildings are subject to stamp duty based on the higher purchase price and value assessed for tax purposes. Two different tax rates:
- 4.25 % if the buyer is a company for example a Swedish AB.
- 1.5 % if the buyer is a Non-business association, for example private person or housing cooperative association.
The stamp duty can be deferred if the buyer is a company within the same group.
If the stamp duty is deferred, the payment is due once the real estate is sold to a company outside the group.
Losses
Losses realised on the sale of the real estate may be offset only against capital gains from real estate. Non-utilised tax losses can be carried forward indefinitely. Limitations may arise due to changes of ownership.
NON-RESIDENT COMPANY
Non-resident companies are treated in the same way as resident companies.
Indirect transfer intra concern (Swedish real estate to swedish company)
RESIDENT COMPANY
Capital gains
Potential capital gains due on the sales of shares of a company are not subject to tax (if the seller holds at least 10 % of the shares or the shares are unlisted).
VAT / Stamp duty
The transaction is not subject to VAT or Stamp duty.
Losses
Losses arising on the sale of shares covered by the participation exemption are not tax deductible.
NON-RESIDENT COMPANY
Non-resident companies are in general treated in the same way as resident companies. However, the regulations of the applicable tax treaty have to be considered.
Direct transfer intra concern (Swedish real estate to foreign company)
RESIDENT COMPANY
Capital gains
Profits of the sale of Swedish real estate is subject to Swedish corporate income tax as business income. The profits are taxed against a flat tax rate of 20.6 % as of 2022.
VAT / Stamp duty
The transaction is not subject to VAT. Stamp duty needs to be paid. The tax rate is 4.25 %.
The stamp duty is deductible from income tax. However, the stamp duty can be added to the purchase price and together form the base cost of the asset and therefore be treated as an asset instead of a cost.
Losses
Losses realised on the sale of the real estate may be offset only against capital gains from real estate. Non -utilised tax losses can be carried forward or carried back.
NON-RESIDENT COMPANY
Non-resident companies are in general treated in the same way as resident companies. However, the regulations of the applicable tax treaty have to be considered.
Indirect transfer intra concern (Swedish real estate to foreign company)
RESIDENT COMPANY
Capital gains
Capital gains due to the sales of shares of a company are not subject to tax (if the seller holds at least 10 % of the shares and the shares are unlisted). If the shares do not meet the participation exemption the capital gain will be part of the company’s turnover which is subject to Swedish corporate income tax at the tax rate of 20.6 % as of 2022.
VAT / Stamp duty
The transaction is not subject to VAT. No stamp duty is due on the sale of shares.
Losses
Losses arising on the sale of shares covered by the participation exemption are not tax deductible.
NON-RESIDENT COMPANY
Non-resident companies are in general treated in the same way as resident companies.
Transfer Swedish real estate to an EU-company
If the transferor’s home jurisdiction is in the European Union, the liability to tax on the capital gains may be avoidable if the merger and acquisition provisions apply. Several detailed conditions apply which can be found in the Council Directive of
19 October 2009.
