Sweden: Government study of potential exit taxation of natural persons suspended
The defunct study was tasked with reviewing the so-called ten-year rule
The defunct study was tasked with reviewing the so-called ten-year rule
The government study reviewing the taxation of capital assets for natural persons who move abroad has been suspended.
The defunct study was tasked with reviewing the so-called ten-year rule, which gives Sweden the right to tax people who have moved abroad for certain capital gains that were not realized before the move. In practice, however, the ten-year rule often cannot be applied because Sweden has forfeited such taxation rights in double taxation agreements with several other countries.
The study was requested by the previous government and was interpreted as a way to revive the exit tax. In addition, a proposal for an exit tax was drawn up by the Swedish Tax Agency in 2017, but was abandoned by the then government after criticism. The fact that the study has been closed appears to decrease the probability that a proposal corresponding to the Tax Agency's exit tax will be put before the Riksdag in the near future.
Read a February 2023 report (Swedish) prepared by the KPMG member firm in Sweden
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