From the change of year, finally the tax-free for retirees who have a private occupational pension (tjänstepension) from Sweden but live in Portugal or Greece have to pay Swedish tax on their pension.
This is because Sweden's tax agreement with the two countries has been terminated. This was decided by the current Prime Minister and former Treasury Secretary Magdalena Anderson.
The tax agreements with Portugal and Greece expire on January 1, 2022. The background to the parliament's decision is that private occupational pensions from Sweden have so far been tax-free or low in Portugal and Greece.
Retirees living in Portugal or Greece who have had a tax-free private occupational pension will receive a tax on the pension from the change of year, in most cases 25 percent. Anyone who previously had a special income tax decision that meant they would not be deducted will be automatically corrected. In such cases, the Swedish Tax Agency makes a new decision with the correct tax level.
Retirees who have not previously made a decision on special income tax must apply as soon as possible. Otherwise, the tax risks being wrong, says Malin Barkestad, head of department at the Swedish Tax Service
It may be higher tax on dividends
The special income tax for residents abroad is a final tax of 25 percent. The person who will make the decision about it does not need to state it. The payer will deduct the tax before the pension is paid.
For people living in Sweden, there may be higher taxes on dividends, interest and royalties from Greece and Portugal. Companies with investments or activities in Portugal or Greece can also receive higher tax from there on dividends, interest and royalties.
The Swedish Tax Service states that the consequences of terminated tax agreements depend on the circumstances in each individual case and are also influenced by the legislation in Portugal and Greece.
From the change of year, those who have a private occupational pension (tjänstepension) from Sweden but live in Portugal or Greece must pay Swedish tax on their pension. This is because Sweden's tax agreement with the two countries has been terminated. This was decided by the current Prime Minister and former Treasury Secretary Magdalena Anderson.
The tax agreements with Portugal and Greece expire on January 1, 2022. The background to the parliament's decision is that private occupational pensions from Sweden have so far been tax-free or low in Portugal and Greece.
Retirees living in Portugal or Greece who have had a tax-free private occupational pension will receive a tax on the pension from the change of year, in most cases 25 percent. Anyone who previously had a special income tax decision that meant they would not be deducted will be automatically corrected. In such cases, the Swedish Tax Agency makes a new decision with the correct tax level.
Retirees who have not previously made a decision on special income tax must apply as soon as possible. Otherwise, the tax risks being wrong, says Malin Barkestad, head of department at the Swedish Tax Service
It may be higher tax on dividends
The special income tax for residents abroad is a final tax of 25 percent. The person who will make the decision about it does not need to state it. The payer will deduct the tax before the pension is paid.
For people living in Sweden, there may be higher taxes on dividends, interest and royalties from Greece and Portugal. Companies with investments or activities in Portugal or Greece can also receive higher tax from there on dividends, interest and royalties.
The Swedish Tax Service states that the consequences of terminated tax agreements depend on the circumstances in each individual case and are also influenced by the legislation in Portugal and Greece.
