Do you live in another Nordic country and have interest income/ interest expenses in Sweden?
This applies to persons resident in another Nordic country who receive interest income from Sweden, or pay interest to a creditor in Sweden. The information deals only with taxation of this income/expenditure.
If you receive interest income from a Swedish bank account, receivables etc., and are resident in another Nordic country, the income is not liable to tax in Sweden.
If tax has been incorrectly withheld in Sweden you may request repayment of the tax that has been withheld. Contact the Swedish Tax Agency or your Swedish bank for further information.
Interest expenses are deductible in Sweden if you have an unlimited tax liability in Sweden. If you on the contrary have a limited tax liability for tax in Sweden, interest expenses are deductible only under certain circumstances. To get deduction for interest expenses you have to choose to be assessed under ordinary rules instead of paying definitive tax (so called SINK) if you have income from employment or pension. Your assessment is under ordinary rules if your income comes from self-employment.
Other conditions for deduction is that:
- you have paid the interest expenses when you have been living in the EEA area
- you can prove that you have not been able to make deductions for the interest expenses in the country where you live and
- your total income from employment, pension and self-employment is taxed to the extent of 90 percent or more in Sweden.
Even if you have a limited tax liability, and your income from employment, pension and self-employment is not taxed to the extent of 90 percent or more in Sweden, your interest expenses for a real estate or tenant-owner´s flat in Sweden are deductible if you are taxed for income from it. If you have income from letting your house or flat, you can make deductions for the interest expenses that refers to the time you let it, for example four month in an income year. If you sell your house or flat, you can make deductions for the interest expenses that refers to the actual income year that you sell it.