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Retiring to Sweden

Taxes: who gets the dough

post 24.May.2012, 06:26 PM
Post #1
Joined: 28.Jul.2011

My Swedish wife and myself have been considering relocating to Sweden (at least for awhile) once I reach retirement in about 4 years. What I am wondering is if I am receiving a pension from the US while living in Sweden, who taxes my income: the US, Sweden, both????

Anyone in a similar situation?
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post 24.May.2012, 07:29 PM
Post #2
Joined: 12.Jul.2011

Sweden has an agreement with most civilized countries in the world that when you retire you only pay tax in ONE country. Never two.
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post 24.May.2012, 07:38 PM
Post #3
Joined: 10.Dec.2010

You pay taxes in the country in which you reside.
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post 25.May.2012, 02:12 PM
Post #4
Location: Stockholm county
Joined: 8.Feb.2011

QUOTE (Svensksmith @ 24.May.2012, 06:26 PM) *
My Swedish wife and myself have been considering relocating to Sweden (at least for awhile) once I reach retirement in about 4 years. What I am wondering is if I am receiving ... (show full quote)


I would contact the US tax authorities and ask them exactly how you would be affected.

I don't know the terms of any US-Sweden double taxation treaty (DTT), but it may be similar to the UK-Sweden DTT

In my case, my UK based pension is still taxed where its paid (the UK) - I then took proof of tax already paid to the UK, along to the Skatteverket office, completed some paperwork - and then the UK tax paid was deducted from my Swedish tax bill.

The principle being that I wouldn't, in effect, be paying 'two lots of tax'.

Whether you will be better or worse off though is another matter unsure.gif
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post 25.May.2012, 04:47 PM
Post #5
Joined: 10.Oct.2007

Are you a US citizen?If not your US social security is taxed by the IRS if you live in Sweden but not if you live in Canada, Egypt, Germany, Ireland, Israel, Italy, Japan, Romania, Switzerland and the United Kingdom (defined as England, Scotland, Wales and Northern Ireland).
Though the country of residence in this case is defined as the country to which the payments are made!

In my case, as nominally a UK resident, the money i save by not being taxed by the US and Sweden pays for the six months i don't spend in Sweden.The personal allowance is much higher in the UK.

If you have a private pension there will be other treaties to study.Making a decision about where to be (theoretically) resident without fully understanding the implications can be very costly.
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post 25.May.2012, 05:11 PM
Post #6
Joined: 28.Jul.2011

Thanks for your replies. This is just some long range speculation. As Sexton points out, it could be costly to not look into all the options. BTW, I am a US citizen and my wife is a dual US/Swedish citizen.
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post 13.Jan.2013, 02:31 PM
Post #7
Joined: 6.Jan.2011

I am an American who took Swedish citizenship, so I have both and am currently getting my Swedish pension. I have been told that my US Social Security when I take it at 66 will not be taxed because I am American. If I were only Swedish then it would be taxed. This is the information I received from the regional Social Security office based at the US Embassy in Oslo, Norway. However, since I am receiving Swedish Social Security, my US Social Security will be reduced in accordance with the Windfall Elimination Provision when I decide to take it out. You can contact the American Embassy in Oslo as they are knowledgeable about this matter.
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