Swedish Holding Companies

The Regime Summary

“Sweden is now one of the best locations for an international holding company.”

Swedish Holding Companies generally Exempt from Swedish Tax on:

(i) Dividend receipts from their investments in other companies.

(ii) Capital Gains made from selling their interest in other companies.

In fact, Sweden’s holding company regime significantly betters those offered by the other traditional locations such Belgium, the Netherlands, Luxembourg or the UK.

The Highlights:

Sweden offers a complete capital and dividend participation exemption regime coupled with the following benefits;

• Easy Qualification as Private Companies should always qualify.
• No minimum holding period to obtain qualification.
• An excellent double tax treaty network (about 80).
• An absence of thin capitalization rules
• Withholding tax free interest payments coupled with unlimited interest cost deductions for tax purposes.
• Low corporate tax; the rate is 28% (about 25% if appropriation to tax equalisation reserve),
• No tax/stamp duty on the transfer or issue of shares.
• No requirement to use notaries.
• Statutory documents in English as well as Swedish.
• Possible management and administration outside Sweden as non-Swedish EU resident directors are permitted.

Sweden boasts a fiscally attractive and cost effective capital and dividend participation exemption regime.



	The Regime Summary “Sweden is now one of the best locations for an international holding company.” Swedish Holding Companies generally Exempt from Swedish Tax on: (i) Dividend receipts from their investments in other companies. (ii) Capital Gains made from selling their interest in other companies. In fact, Sweden’s holding company regime significantly betters those offered by the other traditional locations such Belgium, the Netherlands, Luxembourg or the UK. The Highlights: Sweden offers a complete capital and dividend participation exemption regime coupled with the following benefits; • Easy Qualification as Private Companies should always qualify. • No minimum holding period to obtain qualification. • An excellent double tax treaty network (about 80). • An absence of thin capitalization rules • Withholding tax free interest payments coupled with unlimited interest cost deductions for tax purposes. • Low corporate tax; the rate is 28% (about 25% if appropriation to tax equalisation reserve), • No tax/stamp duty on the transfer or issue of shares. • No requirement to use notaries. • Statutory documents in English as well as Swedish. • Possible management and administration outside Sweden as non-Swedish EU resident directors are permitted. Sweden boasts a fiscally attractive and cost effective capital and dividend participation exemption regime.
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