how to calculate capital gain tax
Hello, I have some doubts about how to calculate capital gain tax on stocks investments when my broker account is outside sweden and I am tax resident in sweden. Let's assume I have some euro in an italian bank and use it to buy a stock using the same bank, and then I sell it realizing a gain in euro. To pay taxes in sweden on the capital gain I have to convert the buy price and the sell price to swedish corona. But which exchange rate do I have to use? Can I use the exchange rate at the moment I sell to convert both the buying and selling price and then calculate the gain? or I have to convert the purchasing price using the exchange rate at the moment I bought and the selling price using the exchange rate at the moment I sold. In this second case when I use 2 different exchange rate, it seems like I am inevitably betting on the swedish korona. Like if I buy for 1.000 euro and sell for 1.000 euro in 1 year, in theory the capital gain is zero. but if in the meanwhile the swedish corona lost half of his value on euro, then I am buying for 10.000 sek and selling for 20.000 sek and I would have to pay some capital gain tax although I didn't realize any gain since I have never converted my money to swedish korona.
In the same situation if instead of buying a stock I keep that 1.000 euro in my italian bank account without buying any stock, in 1 year I will still have 1000 euro but I do not have to pay any tax since I did not buy and sell anything, although I had a gain in sek.
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Hi,
In Sweden you would use the second option ie use the exchange when you bought the stocks and the exchange when you sold the stocks. This means that you also pay on the capital gain of exchange in Sweden.
Kind regards
Daniel
Daniel Andersson är skattejurist hos Skattepunkten AB.
Detta är ett kort svar. Vill du ha mer hjälp kan du få en offert.
<p>thank you!</p><p>another quick question. Could you confirm me that ETFs are not covered by the 10 years rule? I read the law and it says it excludes mutual funds and special funds. Does not mention specifically ETFs.</p><p>Also, could you confirm me that at the moment there is no exit tax in sweden?</p><p>thank you!</p><p> </p><p> </p>
Hi,
Since an ETF is a fund, my assessment is that it is not covered by the 10 years rule. I can confirm that Sweden has no exit tax.
Kind regards
Daniel
Daniel Andersson är skattejurist hos Skattepunkten AB.
Detta är ett kort svar. Vill du ha mer hjälp kan du få en offert.