Investigation regarding Swedish exit tax has been cancelled

by Ebba Perman Borg, Victor Elovsson and Maria Ström


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Last year, on 25 May 2022, the previous Government of Sweden, led by the Social Democratic Party, decided to appoint an inquiry to investigate the possibilities to implement exit tax rules targeting unrealised capital gains of individuals ceasing to be tax resident in Sweden (see our previous article here). However, in late January 2023, the current Government in Sweden decided to cancel the investigation. The reasons for the cancellation have not been specified, other than with reference to general prioritisation.

The purpose of the investigation was to propose a new system for effective taxation of unrealised capital gain. As of today, Sweden does not levy exit tax but instead applies its special tax rule, called the “ten‑year rule”. While the applicability of the ten‑year rule is in many cases limited by tax treaties between Sweden and other countries, the proposed introduction of a new exit tax system has been suggested before and, as with the appointment of the now cancelled investigation, heavily criticised.

Schjødt’s tax lawyers are following the continuous development closely.

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