Svalner has written the Swedish contribution in the publication “Outbound Acquisitions: Tax Planning for European Expansion in a Changing Landscape (2024)”

In today’s rapidly changig European tax environment, businesses must adapt their strategies to remain competitive. As outlined in the latest edition of Insights, the landscape for cross-border tax planning has shifted significantly due to new regulations and directives across Europe. Erik Nilsson, Partner at Svalner, has written the section about Sweden and he claims that despite new challenges, Sweden remains a stronghold for holding and financing companies, offering a stable and advantageous tax regime.

The insights in summary:

• Participation exemption regime: Exemption from taxes on both dividends and capital gains, making it easier for companies to optimize their financial operations.
• No thin capitalization rules: This adds flexibility to financing structures, allowing for more strategic financial planning.
• No withholding taxes on outbound interest payments: Facilitates smoother cross-border financial transactions.
• Extensive network of double tax treaties: With around 90 treaties in effect, Sweden offers significant benefits for international businesses, particularly in reducing tax burdens on dividends and capital gains.
• Low corporate income tax rate: At just 20.6%, Sweden’s corporate tax rate is competitive, attracting both EU and non-EU corporations.

These features, coupled with relatively low requirements on minimum share capital and strategic agreements with the U.S. and other nations, make Sweden a robust and reliable base for international business operations.

For companies looking to optimize their global strategies, Sweden presents a compelling case as a destination for holding and financing activities.

Read the full treatise here:  https://lnkd.in/gEKisXb9 or contact Erik Nilsson if you want to know more.