How can investment in real estate by an individual/organization/company be set up?
Stamp duty is payable when the property is acquired directly. The tax rate for corporations is 4.25 percent of the purchase price or the tax value, whichever is higher. The tax rate is 1.5 percent for individuals. The buyer is responsible for paying stamp duty. No stamp duty is payable if the purchase is of shares in the company holding the property.
Last modified 13 Mar 2025
How can investment in real estate by an individual/organization/company be set up?
The purchase of real estate is not subject to VAT.
Last modified 13 Mar 2025
How can investment in real estate by an individual/organization/company be set up?
Estate agents work on a commission basis which generally varies between 0.5 percent and 5 percent of the purchase price, depending on the property and size of transaction. Additional costs include any legal, financial, commercial and technical investigations. The seller normally pays the estate agent. All other costs are generally paid by whichever party instructed the advisers concerned.
How can investment in real estate by an individual/organization/company be set up?
For corporations, rental income and other business income are taxed at a rate of currently 20.6% (2025) and property tax is also payable.
A partnership is transparent for income tax purposes. Taxable income is calculated in the same way as for an incorporated company. Corporate partners are taxed at a rate of 20.6% (2025) and individuals at a progressive rate of between 47% and 65%. Property tax is also payable.
Last modified 13 Mar 2025
How can investment in real estate by an individual/organization/company be set up?
How can investment in real estate by an individual/organization/company be set up?
Typically, any income will be the rental income from letting out premises. In addition capital gains may be made when the property is sold.
Last modified 13 Mar 2025
How can investment in real estate by an individual/organization/company be set up?
Rental income, or any other income, is treated as business income and is taxed at a rate of 20.6% (2025) (for corporations). A general reduction of net interest deduction corresponding to 30% of EBITDA applies. However, the reduced interest deduction applies only if negative net interest exceeds SEK 5 million (simplification rule). The amount is measured on a group level. Certain additional restrictions apply to the deduction of interest on intercompany loans. For corporations, depreciation of a building for tax purposes is currently allowed at 2% to 5% annually for industrial premises, 3% for retail property and 2% for offices. Speeded up depreciations — additional 2% the first six years — are available for newly produced apartment houses. Certain options to postpone taxable income are sometimes available but detailed advice should be sought on this matter.
Partnerships are transparent for income tax purposes. The tax rate is currently 20.6% for corporate partners, and there is a progressive tax rate of between 47% and 65% for individuals.
Last modified 13 Mar 2025
How can investment in real estate by an individual/organization/company be set up?
For corporations, income can be distributed as dividends, in which case withholding tax at the rate of 30 percent may apply to a dividend payment to a foreign shareholder. However, foreign corporate shareholders are normally exempt from withholding tax in Sweden. As a general rule withholding tax is only imposed on dividends distributed to companies resident in tax havens. In addition, the tax rate is often reduced by an applicable tax treaty.
No taxes or other charges are payable on the transfer of income to partners in a partnership. Each partner is taxed on their share of the net income in the partnership, regardless of whether the income is distributed by the partnership or not.
Last modified 13 Mar 2025
How can investment in real estate by an individual/organization/company be set up?
No.
Last modified 13 Mar 2025
How can investment in real estate by an individual/organization/company be set up?
There are no specific charges imposed on the transfer of income other than the relevant taxes.
How can investment in real estate by an individual/organization/company be set up?
An incorporated company is taxed on capital gains from the sale of real estate as ordinary business income at a rate of currently 20.6% (2025). A capital loss from the sale of real estate may normally be offset only against capital gains from real estate sales.
Capital gains from the disposal of shares in unlisted companies and shares in partnerships within the EU are exempt from capital gains tax for corporate shareholders. Normally the sale of real estate is structured as a share sale rather than a direct sale of real estate. In this way, the seller avoids paying capital gains tax (and stamp duty).
Non-resident holders (without a permanent establishment in Sweden) of shares in a Swedish limited liability company are not taxed in Sweden on capital gains from the sale of the shares.
Swedish resident non-corporate shareholders are normally taxed on capital gains from the sale of unlisted AB shares at the rate of 25%.
Capital gains from the sale of shares in a partnership are exempt from tax for corporate partners.
The sale of real estate by a partnership is generally structured as a sale of shares in the partnership in order to avoid paying capital gains tax and stamp duty.
Individual partners, in partnerships, that are resident in Sweden are normally taxed at 30% on capital gains.
Partners that are not resident in Sweden are not taxed in Sweden on capital gains arising from the sale of shares in a Swedish partnership.
Last modified 13 Mar 2025
How can investment in real estate by an individual/organization/company be set up?
Stamp duty is not payable if shares in the company holding the property are sold. Otherwise stamp duty is payable on the transfer of real estate. However, the buyer is responsible for paying this. Other costs may include legal and financial advice and estate agency fees. Estate agents normally work on a commission basis which generally varies between 0.5 percent and 5 percent of the purchase price, depending on the property and the size of the transaction.
