Background & Purpose

Previously, foreign states had to pay a specific tax, known as coupon tax, on dividends from Swedish investments. This change aims to align Swedish tax rules with international standards and simplify cross-border investments.

The Decision

The parliament approved the proposal, meaning that foreign states and their local authorities will be exempt from paying coupon tax on dividends from Swedish companies and funds starting July 1, 2026.

Does this affect you?

  • Foreign government investment funds: These entities will no longer have to pay the Swedish coupon tax on dividends, increasing the net return on their Swedish stock holdings.
  • Foreign local authorities: Municipalities and regions in qualifying countries will be exempt from the tax on dividends from Swedish investments.

In Practice

  • Foreign states within the EEA are now exempt from coupon tax on Swedish dividends.
  • Foreign states outside the EEA that have a tax information agreement with Sweden are also exempt.
  • Local authorities, such as foreign municipalities or regions, are included in the exemption.
  • The new rules apply to dividends from Swedish limited companies, European companies based in Sweden, and various investment funds.