Sweden: Government proposes amendments to the taxation of real estate

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The Swedish government has Proposes some tax changes on 30 March 2017, regarding taxation of real estate. The proposal will now be referred to stakeholders for consultation before a final version is handed to Parliament for voting. The new rules are proposed to enter into force on 1 July 2018.

The key features of the process are:

-The sale of a company whish’s assets mainly consist of real estate will, simplified, be taxed as if the real estate was sold separately. The company sold will be liable to pay the tax.

– The stamp duty should no longer be levied on intra-group property transactions and the stamp duty for companies is dropped from 4.5% to 2%.

-Intra-group real estate transactions of land and buildings that can be carried out below market value are to support continuity in terms of acquisition values, accumulated depreciation and the tax residual value.

– A tax impartial transfer of real estate below the fair market value will have no effect on the acquisition value, tax base, and tax reductions made.

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