Sweden has no tax treaty with Greece or Portugal! Spain - next runner up?

Sweden has as of 1/1 2022 terminated the tax treaties with Greece and Portugal. The reason is probably the tax-favorable tax regimes that Greece offers and that Portugal previously offered.

One of Sweden's "tools" to ensure that certain types of income are taxed in Sweden is to terminate tax treaties.In addition, Sweden can change its internal tax rules.EU law must also be taken into account.

Spain and a number of additional countries, both within and outside the EU, offer, in combination with or without tax treaties, tax-advantaged outcomes on various types of income.

Ongoing investigations in the international tax area are, among other things, that the Coupon Tax Act is expected to be replaced by the Withholding Tax Act, the ATAD3 regulations are expected to be introduced within the EU and that there is a proposal for a more precise definition of the concept of "permanent residence".

We recommend that you review what your unique circumstances may entail for tax outcomes when settling in another country.

If you want tax advice based on your unique circumstances, you are warmly welcome to Global Tax Sweden, which has many years of experience in international tax matters and has a very well-established international network of contacts.

Global Tax Sweden has many years of experience in international tax issues and a well-established international network of contacts.

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Pre-Audit, Tax-Audit or Tax Litigation - What do you prefer?

As an entrepreneur, you and your company should take tax advice in good time before the various choices you as an entrepreneur face, as there are usually many aspects in the tax area to consider. This is to avoid a subsequent costly and lengthy tax litigation.

A tax litigation is always costly and takes many years. Hiring a procedurally knowledgeable tax advisor as early as possible usually has a significant impact on the outcome of the tax litigation.

Global Tax Sweden has employees with high competence and many years of experience in Pre-Audits, Tax Audits and Tax Litigations.

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The closely held rules, the 3:12 rules, the 57: 4 rules - "many names despite one single matter"

The mentioned regulation constitutes the hub of the Swedish economy, i.e. the tax system that Sweden's entrepreneurs are covered by.

The 3:12 rules aim to prevent income conversion from wage income to capital income.

The tax burden for entrepreneurs varies between 20% - about 52% tax. In addition, social security contributions or corporation tax are levied.

Are you assessed to be taxed as being active or passive? Which of the forms K10 or K12 should you declare on? Is the so-called "outsider rule" applicable? Maybe a so-called passive-company would be something for you to consider?

On 3 June 2024, the 3:12 investigation presented proposals for simplifications and improvements within the 3:12 rules, where the referral period expires on 18/10 2024. The rules are expected to enter into force on 1/1 2026.

Global Tax Sweden is well acquainted with this extremely complex regulatory framework, which is largely governed by case law.

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