Sell property abroad, buy in Sweden

Hi,

1 I will be the full sale price that is the capital gain since you have had no cost to buy the property.

2 Since the property is outside the EU you can´t avoid/decrease the tax.

3 Since there is a tax agreement between Sweden and Russia they should send the information to Sweden but if that happens or not, I may not answer.

Kind regards

Daniel

Hej Daniel,

Thanks a lot for your answer. To obtain total clarity I decided to read tax agreement btw Sweden and Russia.

There are articles 6 and 23 that confuses me. In article 6  Income from Immovable property, it says: "1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State." Does that mean I can pay tax just in Russia?

Then when I read article 23 Elimination of double taxation, it says:

2. In the case of Sweden, double taxation shall be avoided as follows:

(a) Where a resident of Sweden derives income which under the laws of Russia and in accordance with the provisions of this Convention may be taxed in Russia, Sweden shall allow – subject to the provisions of the law of Sweden concerning credit for foreign tax (as it may be amended from time to time without changing the general principle hereof) – as a deduction from the tax on such income, an amount equal to the Russian tax paid in respect of such income.

(b) Where a resident of Sweden derives income which, in accordance with the provisions of this Convention, shall be taxable only in Russia, Sweden may, when determining the graduated rate of Swedish tax, take into account the income which shall be taxable only in Russia.

(d) Where a resident of Sweden owns capital which, in accordance with the provisions of this Convention, may be taxed in Russia, Sweden shall allow as a deduction from the tax on the capital of that resident an amount equal to the capital tax paid in Russia. Such deduction shall not, however, exceed that part of the Swedish capital tax, as computed before the deduction is given, which is attributable to the capital which may be taxed in Russia.

Article 23 says that taxes paid in Russia could be excluded from Swedish calculation. A bit confused now as one article says that I can pay tax in Russia, the second article suggests possible deductions...Do you possibly have any idea on how to read this?

It means that you can deduct taxes paid in Russia, from Swedish 22 percent tax.

Hi,

In your case article 13 (capital gains) is relevant since you sell the property, but it states more or less the same thing ie that Russia may tax the income. This means that Russia may tax the income but is doesn´t prevent Sweden to tax the income. If it would prevent Sweden to tax the income it would state that only one stat could tax the income (compare with article 11, p1).

Since article 13 make it possible for both countries to tax the income, Sweden should deduct the Russian tax to avoid the double taxation.

Kind regards

Daniel

Hej again!

I have discovered that my father had purchased the apartment that he later gifted to me. The acquisition price in the contract is stated in USD dollars, but with the remark, that amount should be paid in rubles based on Russian Bank exchange rate.

When declaring capital gain on the sale of this apartment how do I calculate the original cost? Should I convert USD dollars to Swedish crowns based on the exchange rate from 2003 (when my father purchased the apartment)? Or should convert roubles? Or should I use the current exchange rate? So what is not clear: which currency to take for conversion and what years conversion rate.

Thanks for your answers!

Mvh,

Dmitriy

I 

Sorry, that was my grandfather who purchased the apartment and then gifted to my father, who then gifted to me :) 

Mvh,

Vasiliy Dmitriy

Use sek. sedish central bank publihes rates over the years. 

Valutakurser till deklarationen | Sveriges Riksbank

Hej Dimitriy,

Use the exchange course for USD to SEK 2003.

Mvh
Daniel

They have a time series available in their stat section