Do you live in another Nordic country and own real estate or a tenant-owner's flat in Sweden?
This information is addressed to you if you are resident in another Nordic country and have a tenant-owner's flat (you own shares or participations which give entitlement to a dwelling) or a one-family or two-family house (detached/semi-detached house) in Sweden, which either you or those close to you use wholly or partially as a permanent dwelling or vacation home, i.e. a private residence.
Assessment for tax in Sweden
You are assessed in Sweden for your Swedish private residence. If you let it, you will be assessed on the rental income. Profit from sale of a private residence is also taxable. The tax assessment value of the private residence is the basis for the local government charge.
You must submit Inkomstdeklaration 1 [Personal Tax Return 1] in Sweden.
Assessment of letting
Income from letting must be assessed. Rent paid to you by the tenant is the taxable income. You may make a deduction of SEK 40 000 per year and also an amount equivalent to 20 per cent of the rental income (if it is a tenant-owner's flat a deduction of that part of the charge that relates to the part let is allowed instead of the 20 per cent of the rental income). The deduction applies per property, regardless of how many owners there are. The deduction must not exceed the rental income and deductions are not allowed for your actual costs even if these have been higher.
Income from rental is assessed as income from capital and the rate of tax is 30 per cent.
Sale of private residence
Profit on the sale of a private residence is taxable. A loss is deductible, but if you do not have any other income you can use the deficit only to reduce your real estate tax.
Profit or loss is the difference between the income and the amount of overheads. The income is equal to the selling price reduced by your selling costs, such as estate agent's fees. The amount of the overheads consists of the acquisition cost for the private residence and charges for improvements up to at least SEK 5 000 per year.
22/30 of the estimated profit is taxable under the heading income from capital. The rate of tax on the taxable profit is 30 per cent. If certain conditions are satisfied, it is possible to obtain postponement of the profit.
If the calculation results in a loss, half of the loss resulting is deductible under the heading income from capital. If you have a deficit on capital, you can have your tax lowered by a tax reduction when calculating your final tax.
You should payproperty charge if you own a detached house in Sweden. The fee levied is charged at 0,75 per cent of the tax assessment value, maximum SEK 8 049 per year.