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Limited tax liability 

A person who does not have unlimited tax liability has instead limited tax liability, i.e. is taxed only on certain income.

On what income are you liable to pay taxes?

If you have limited tax liability you will pay tax only on certain income that comes from Sweden and not on income which you receive in, for example, your own country. Provisions of tax agreements may mean that the Swedish right to tax is restricted.

Taxable income from employment includes salary, pension and seafarer's income. On such income you pay special income tax for non-residents (SINK) of 25 per cent. On seafarer's income the SINK-tax is 15 per cent. If you receive remuneration as an artist or sportsman you will instead pay special income tax for non-resident artists, sportsmen etc (A-SINK) of 15 per cent. It is also possible to elect to be taxed under ordinary taxation rules and to pay state and municipal income tax. However there are special preconditions for claiming, for example, basic allowance in Sweden.

You are liable to pay taxes if you carry on business activity from a fixed place of business or have a business property here. You pay state and municipal income tax on such business income.

Capital gains on shares interest- and dividend-incomes are taxed as income from capital and the tax rate is a flat rate of 30%. If you are letting your private residence or are selling a private residence is the profit also taxable as income from capital. In connection with letting the whole income is base for the taxation but in connection with sale of private residence the base is 22/30 of the profit. Tax is imposed with a rate of 30% of the base.  

Dividends on Swedish shares and participations in Swedish securities funds are subject to dividend tax. The rate of dividend tax is 30 per cent, but if you are resident in another Nordic country the tax is reduced to 15 per cent.

If you own a detached or semi-detached house in Sweden you will have to pay a local government charge. Real estate tax will be levied on undeveloped plots, leasehold sites, apartment buildings that are non-residential premises, industrial premises etc.

Who has limited tax liability?

If you are not resident in Sweden, nor have a habitual abode here, nor have an essential connection with Sweden, you have a limited tax liability. This applies, for example, if you have not lived in Sweden before or have stayed here for a period shorter than six months. It also applies if you do not stay overnight in Sweden and commute daily from a neighbouring country, even if commuting continues for a long period.

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