Sweden

{"ftc_utility":"high","fbar_trigger_notes":"US expats living in Sweden must maintain a Swedish bank account for salary payments, utility bills, and Swish (mobile payments). A single account held at Swedbank, SEB, Handelsbanken, or Nordea will typically exceed the USD 10,000 FBAR threshold quickly given Swedish salary levels. FBAR (FinCEN 114) filing is required. FATCA reporting obligations also apply; Swedish banks participate in the IGA between Sweden and the US signed in 2014.","ftc_utility_reason":"Sweden imposes among the highest personal income tax rates in the world, with municipal tax of approximately 32% and a national surcharge of 20% for income above SEK 598,500. These Swedish taxes will typically exceed US tax liability, making Foreign Tax Credits the most effective tool for US expats in Sweden. FEIE is useful for those under the income cap (USD 126,500 for 2024) but FTC is often preferred for high earners to avoid double taxation on amounts exceeding the exclusion.","presence_day_count_notes":"Sweden has no specific visa restriction preventing the 330-day physical presence test from being satisfied. US citizens residing legally in Sweden (EU/EEA rights do not apply to non-EU nationals; a residence permit is required for stays beyond 90 days in 180 days) can count days present in Sweden toward the 330-day test. The bona fide residence test is typically easier to establish given Sweden's defined permit and registration system.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":36000,"local_tax_rate_on_earned_income":0.52,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Swedish pension income is taxed as earned income at the municipal tax rate of approximately 32% for most taxpayers. The national 20% surcharge applies to higher pension incomes exceeding SEK 598,500. Swedish pensioners receive a basic deduction that partially offsets tax, but this deduction is smaller for pension income than for wage income, resulting in a higher effective rate for pensioners compared to workers at equivalent income levels.","tax_rate":0.32,"locally_taxed":true},"social_security":{"notes":"Under Article 19 of the US-Sweden Social Security Totalization Agreement and treaty provisions, US Social Security benefits paid to Swedish residents are generally taxable only in the US. Sweden does not impose its own tax on US Social Security income for Swedish residents.","locally_taxed":false,"treaty_protection":true},"roth_distributions":{"notes":"Sweden does not recognize the Roth IRA as a tax-exempt vehicle. Qualified Roth distributions that are tax-free in the US may still be taxable in Sweden as pension income, since Sweden taxes based on its own domestic rules. The US-Sweden treaty does not explicitly exempt Roth distributions from Swedish tax. Residents should seek specific advice on characterization.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"Under Article 18 of the US-Sweden tax treaty, pensions and similar remuneration paid to a Swedish resident are taxable only in Sweden. US 401(k) and IRA distributions received by a Swedish tax resident are treated as pension income and taxed at Swedish progressive rates (municipal income tax of approximately 32% applies at the local level for most taxpayers). The treaty prevents US withholding in most cases but Sweden taxes the income. The 10% US early withdrawal penalty is a separate US-side issue and does not affect Swedish tax treatment.","tax_rate":null,"locally_taxed":true,"treaty_protection":true}}

{"rate":0.3,"notes":"Sweden taxes most capital gains (shares, funds, real property) at a flat 30% for individuals. Listed shares held through an investment savings account (ISK) are taxed on a deemed return basis rather than on realized gains.","details":{"tax_type":"Capital Gains Tax","country_name":"Sweden","country_iso_code":"SWE","source_references":["PwC Worldwide Tax Summaries - Sweden","Skatteverket (Swedish Tax Agency)"],"last_verified_date":"2026-06-03","general_description":"Capital gains are taxed in the capital income category at a flat 30% rate. Gains from listed securities held in an ISK (investeringssparkonto) are not taxed on realization; instead, the account value is subject to an annual schablonintakt (standard income) calculated as the government borrowing rate plus 1 percentage point, taxed at 30%. Gains on unlisted shares may be subject to different rules under the 3:12 regime for closely held companies.","corporate_capital_gains":{"rate":0.206,"tax_treatment":"Corporate capital gains are generally taxed as ordinary business income at the corporate income tax rate of 20.6%. Gains on shares held for business purposes (naringslivsbetingade andelar) are exempt from tax when conditions are met."},"individual_capital_gains":{"rate":0.3,"tax_treatment":"Flat 30% rate on capital income including gains from shares, funds, and real property. Primary residence gains are taxed at 22% (30% on 22/30ths of the gain). ISK accounts use deemed-return taxation instead of realized-gain taxation."}}}

{"notes":"Dividends received by Swedish residents are taxed as capital income at 30%. Dividends paid to non-residents are subject to a 30% withholding tax, reduced to 15% under the US-Sweden tax treaty. Dividends from listed shares held in an ISK are not separately taxed - they are swept into the ISK deemed-return calculation.","rates":[{"rate":0.3,"type":"flat","notes":"Standard rate for residents on dividends from listed companies"},{"rate":0.3,"type":"withholding","notes":"Statutory withholding rate for non-residents"},{"rate":0.15,"type":"withholding","notes":"Reduced withholding rate for US residents under the US-Sweden tax treaty"}]}