Printable Version of Topic

Click here to view this topic in its original format

The Local _ Finance _ Investment loan secured by apartment

Posted by: RAFS 8.Jun.2019, 09:45 PM

If I can buy an apartment with my own savings, would a Swedish bank then give me a loan secured by that apartment for the purpose of investing e.g. in shares or managed funds? (I have a good permanent job, so I should qualify for a regular home loan, i.e. one used to buy the apartment.) If yes, would they charge the same interest for this as for a regular home loan? Would the maximum loan amount be the usual 85% of the apartment value?

If I can do this then, as I understand it, the loan interest would be 100% tax deductible, rather than only 30%. Does that sound right? Does it matter whether the investments bought with the loan proceeds are in an ISK?

I'm not ready to do this quite yet, just trying to plan ahead a little. I know this is done in some other countries, but would be interesting to hear from anyone who's done it in Sweden.

Posted by: RAFS 23.Jul.2019, 06:42 PM

From what I've read since posting this, it seems like loan interest is always tax-deductible in Sweden, whether it's for investment purposes or not. As I understand, the net capital income is reduced by 100% of the loan interest and the tax on that is 30%, hence the tax is effectively reduced by 30% of the interest. Is that right?

Powered by Invision Power Board (http://www.invisionboard.com)
© Invision Power Services (http://www.invisionpower.com)