24 March 2021
The Swedish Ministry of Finance has announced the submission of two draft bills in parliament on 23 March 2021 that provide for the termination of the 1961 income and capital tax treaty with Greece and the 2002 income tax treaty with Portugal. The two treaties are to be terminated by 31 December 2021 so that they cease to apply from 1 January 2022.
According to the Ministry, the reason for termination is that these countries have introduced targeted tax rules that essentially allow individuals moving from Sweden to these countries to pay very low or no tax on, for example, occupational pensions and capital gains originating from Sweden. In this respect, it is noted that tax treaties are primarily meant to eliminate double taxation and should not contribute to creating opportunities for tax planning, as is this case for the current treaties with Greece and Portugal.
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