taxation of money from abroad

Hi Marko!

In Sweden there is no tax for just transferring the money.

Kind regards

Daniel

Hi Daniel

I don´t understand....Let me try anew: money (obtained from selling real estate in Croatia) transferred from my bank account in Croatia to my bank account in Sweden (Swedbank) will have to be declared to Skatteverket. You are not suggesting, are you, that the money in question is not taxable and consequently won´t be taxed (??).

Thanks!

Marko 

Hi Marko!

When you sell an apartment abroad the profit is taxable in Sweden if you were unlimited taxable in Sweden. You are unlimited taxable in Sweden if you live in Sweden, stay permanently in Sweden or close ties to Sweden. If you then transfer the money to Sweden there is no additional tax. The tax rate for selling an apartment is 22 percent. I will show you with an example:

Year 1, you sell an apartment in Croatia but are living in Sweden, the profit is taxed in Sweden if you live in Sweden. If you are not living in Sweden there is no tax in Sweden.

Year 2, you transfer the money to Sweden, there is no tax for transferring the money regardless if you paid tax in Sweden year 1 or not.

Kind regards

Daniel

Hi Daniel

Thank You for your explanation.

However, I´m still not sure I´ve fully wrapped my mind about this... 

Let me try anew:   I live and work in Sweden as of recently so I am unlimited taxable. The money obtained from the selling of the apartment in Croatia will be transferred to Nordea Bank in Sweden, where I have my account. Upon the receipt of the money, Nordea will notify Skatteverket. From this point on I lose the thread, so to speak....could you please explain what you meant by "year 1" and "year 2" examples.... (?).  My goal, obviously, is to pay as little tax as possible.....how can I achieve that? 

Thanks!  

Marko

Hi Marko, If you want to do it clean, pay 22 percent in Sweden. But I think, according to DTA that whatever taxes you paid in HR are deductible. Then you can transfer without a worry. In the second example, I think DA means that in case of SKV questions, the thread with the real estate deal has been lost after 1 year. However questions might arise about the source of the funds if SKV asks. If you recently moved to Sweden, I do not think they ask much. Also note that starting this year HR is part of CSR. Hence info on all your accounts here will reach SKV no matter what.  The authorities here have received all info on all my Swedish accounts starting last year. To this I can add that I have transferred large amounts to Sweden from e.g. my brokerage account in Zagreb and Copenhagen, and never received a question. But better listen to Daniel, he is the expert.

Had I known you personally an easy solution would have existed. Smile

Having worked with Skattepunkten, I think they will always, ultimately recommend you doing a K6. But remember that taxes and expenses here must be deductible.  Finally, as a ecently emigrated person I strongly suggest that you read the DTA. It can be found on SKVs homepage.

I should add that a K6 is the form for declaring real estate gains in Sweden and CRS stands for Common Reporting Standards whuch means authoroties within OECD will start to automatically exchange information on any accounts, including pension and capital insurance. And be aware that Sweden is a high tax society and one better follow or they hit you. Finally, and as Daniel said, there are no taxation at all on transferring sums between countries. And I think as of late the horrendous fees HR banks used to charge has now had to been lowered because of EU law. Also, Sweden is a much safer banking system than HR and I would never maintain more than 100 K euros in any single of them.

DTA stands for Double taxation agreement. Regarding CRS, and assuming you are a Swedish tax resident, all your interest income in HR should show up in the annual Swedish pre printed tax form that they should send to you in april next year. On the meager interest you receive on accounts here and in Sweden, they will demand 30 prcent tax. When returning the form to the Swedish tax authority SKV, you should demand deduction from those taxes for the 12 percent they automatically deducted here. As a recently immigrated person, it might be wise to sit down with a tax expert to go through your situation. A have in the past and am curently using Skattepunkten and have been very pleased with their advice and assistance. And believe me, I am just a customer.

Hi Marko,

Since you are unlimited taxable in Sweden you must pay tax for selling the flat in Croatia, the tax rate is 22 percent on the profit. This means that you must report the income in your tax return. When you transfer the money to Nordea they must hand in a statement to Skatteverket that you have transferred money to Sweden.

The tax in your case is 22 percent. If you pay tax in Croatia is deductible in Sweden.

Kind regards

Daniel

www.skattepunkten.se

Also, note that the 22 percent tax is only on the gain you made selling your property. Deductible are costs as well as HR tax for sure. Enjoy my beautiful country, besides its winters and taxes that you will soon learn to hate. Regards and best of luck. Mats

​Also, the time of the sale and the date of your move to Sweden has implications. If you moved to Sweden prior to June 30 this year and sold your property lets say in May, Swedish tax applies. If you sold in May and moved to Sweden after June, perhps only HR tax applies. Once again, as a fresh immigrant with some assets, it is often advicable to sit down with a an expert to through all of your situation. And they are good folks here at Skattepunkten. It could save you a lot of money and headache. I did when I moved to HR.

Thank you very much Matgus3  and Daniel! :)  I really appreciate although my head is aching badly from all this information. :(   It might be just as well that I sit down with a financial expert/adviser and let him/her guide me through all the procedures, regulations and norms. 

Cheers!

@ matgus3

If you don´t mind me asking: are you Croatian yourself, or at least speak Croatian?  :) 

Very little. Still stuck with Swedish, French and Spanish.

​But you know Marko, in Sweden they will, unlike HR, offer you free language courses. Besides that, my phone here is 00385989908755. If you send me your mail, I will, as a person going through the same as you, of course help you to the extent I can. But I still think it is adviceable to initially talk to a tax expert and they are fully capable here at Skattepunkten and know Swedish internal law much better than I do. In the mean time, enjoy Sweden. It is a nice place!