How corporate tax works in Sweden
Sweden taxes resident companies on worldwide income at a flat 20.6%. There is no municipal corporate surcharge, so the headline and effective rates match for most firms.
Dividends within Swedish groups and from qualifying business-related holdings are generally exempt. Capital gains on business-related shares are usually tax-free with matching loss restrictions.
Groups above EUR 750 million in turnover face the 15% Pillar Two minimum through Swedish top-up, IIR and UTPR rules. Tax losses carry forward indefinitely with ownership-change limits.
Tax rates at a glance
- Corporate rate
- 20.6%Flat
- Group dividends
- Exempt
- Pillar Two minimum
- 15%
- Loss carry-forward
- Unlimited
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHolding companiesRegional operatorsInvestorsCross-border groups
Watch out for
- Sweden is cheap for companies and costly for staff. A 20.6% corporate rate beside 52% top salary tax makes owner-manager pay mix the central decision.
- Interest deduction limits follow EBITDA-based rules. Leveraged acquisitions need modelling of Swedish earnings-stripping caps.
- Tax losses survive ownership changes only within limits. Buying a loss company for its losses generally fails.
- Close-company rules tax some owner payouts as salary rather than capital. The 3:12 rules decide how much of an owner-manager's income gets the 20% capital rate.
Frequently asked questions
Does Sweden have corporate tax?
Yes, a flat 20.6% on taxable company profits with no local surcharge.
Are group dividends exempt in Sweden?
Generally yes for qualifying Swedish and business-related foreign holdings.
What are the 3:12 rules?
They cap how much of a closely held company's payouts an active owner can take at 20% capital rates, with the rest taxed as salary.