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


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.