Europe

Sweden

Corporate rate
20.6%
Top personal rate
20%
VAT / GST rate
25%
One-sentence summary Sweden's corporate tax position: 20.6. Personal income tax: residents 20% plus municipal; non-residents 22.5%. VAT/consumption tax: 25.

Corporate Tax Rate

Sweden's headline corporate income tax (CIT) rate is 20.6.

Personal Tax Rate

The headline personal income tax (PIT) rate is residents 20% plus municipal; non-residents 22.5%.

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 25. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

An individual is a Swedish tax resident if their principal home is in Sweden, if present in Sweden continuously for at least six months, or if they have an "essential connection" (vasentlig anknytning) to Sweden - such as a permanent home, immediate family, or a Swedish company board role - and were previously resident there. Swedish citizens and foreign nationals who lived in Sweden for at least ten consecutive years are presumed resident until they prove all significant ties are severed; five years after departure, the burden of proof shifts to the tax authority to show ties still exist. Residents are taxed on worldwide income; non-residents face a flat 25% rate on Swedish-source employment income.

CFC Rules

A Swedish resident holding, directly or indirectly, at least 25% of the capital or voting rights in a foreign entity is subject to CFC taxation if that entity is "low-taxed" - defined as facing an effective rate below 55% of the Swedish corporate rate (roughly 11.4%, given the current 20.6% headline rate). Where triggered, the shareholder is taxed annually on their proportional share of the entity's income, computed under Swedish tax rules, regardless of distribution. Entities resident in an approved "white list" jurisdiction, or within the EEA, are generally excluded from the regime.

Thin Capitalization / Interest Limitation

Sweden has no formal thin capitalization rule. Since January 1, 2019 (implementing EU ATAD), net interest expense on both internal and external loans is deductible only up to 30% of tax-EBITDA, with a safe-harbor de minimis exemption for groups with net interest expense under SEK 5 million. Disallowed interest carries forward up to six years, though a change of control generally extinguishes the carryforward (except within the same group). A separate, targeted rule denies deduction on intra-group loans unless the beneficial owner of the interest income is taxed at 10% or more (or resides in a jurisdiction with an applicable tax treaty), and even then, deduction can still be denied if the loan's principal purpose is to secure a Swedish group tax benefit.

Treaty Network

Sweden maintains an extensive tax treaty network; secondary sources report figures ranging from roughly 80 to over 100 treaties depending on how older or superseded agreements are counted, so no single figure here is independently verified as current. The authoritative, current list is maintained by the Swedish Tax Agency (Skatteverket).

Source: PwC Worldwide Tax Summaries - Sweden (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 17 December 2025. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.