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will i pay tax if i live in Sweden?

renting my UK home out.

aburrows1@hotmail.co.uk
post 11.Sep.2018, 12:51 PM
Post #1
Joined: 11.Sep.2018

Hi, i have recently come in to some money and want to know if it is enough to move to Sweden. Would i be required to pay tax if i bought a small house in Sweden and lived in that while collecting rent from a tennant in my UK home? I intend to attend univerity/college in Sweden and do voluntary work there.
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skogsbo
post 11.Sep.2018, 01:21 PM
Post #2
Joined: 20.Sep.2011

You have a special tax free income from renting threshold of 50,000kr per annum per person in sweden. This is total rental income and nothing is deductible from it, as the 50k allowance more than covers it.

You will pay tax in the UK though. There is a special form to fill out with HMRC which will allow your agency to pay you pre tax and you just declare it yourself annually in your return, plus various expenses which are tax deductible. The income is encompassed in the normal UK tax allowance, so how much you pay depends on if you have any other UK income.
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BlackfDes
post 12.Sep.2018, 09:46 AM
Post #3
Joined: 27.Dec.2008

Yes. Every time you buy something. Its a consumption tax which is 25% on most things and 12% on food and some services.

But if you pay cash ... you still pay it!

A pretty fair way of taxing people in my books.

Hope this helps.
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Temp
post 12.Sep.2018, 11:40 AM
Post #4
Location: Stockholm
Joined: 14.Jun.2006

As Skogsbo says, yes you are taxed on the rent income - but there is an allowance each year.

There's a form to fill in where you make the tax return each year. You basically list the rental income you made, make the allowance deduction, and end up with the taxable amount which you copy to the main tax form.

You can also claim tax relief on your mortgage *interest* payments.

Your main "problem" might be if you sell your UK property whilst in Sweden or after you have left (if Sweden can claim you are still tied to here). Sweden will tax you the capital gain from when you bought to when you sold (using exchange rates from those dates too - so you have an additional exchange rate risk)
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skogsbo
post 12.Sep.2018, 11:54 AM
Post #5
Joined: 20.Sep.2011

QUOTE (Temp @ 12.Sep.2018, 10:40 AM) *
As Skogsbo says, yes you are taxed on the rent income - but there is an allowance each year. There's a form to fill in where you make the tax return each year. You basic ... (show full quote)

Recent UK changes mean that interest isn't tax deductible anymore.

You will pay tax in the UK on any profit you make on the sale. Based on the value when you leave the country. There is wriggle room if you do major costly renovations which weren't already accounted for in expenses on the annual hmrc tax return.

In Sweden profit from home sales is only taxed if it isn't reinvested in another property. So don't down size and family summer or winter stugas remain in the family to reduce tax liability.
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aburrows1@hotmail.co.uk
post 16.Sep.2018, 11:21 AM
Post #6
Joined: 11.Sep.2018

That's a big help, thanks very much, i really want to come to sweden and not be a drain, i just want to know if i can afford it until my swedish is good enough to work there. A massive help, thanks.
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GamlaSkogHisingHope
post 18.Sep.2018, 07:33 AM
Post #7
Joined: 20.Nov.2016

Get some proper advice rather than listening to these posters.

The BTL tax regime is shifting to make it less attractive, so by 2020 the tax position will be very different and not as advantageous for landlords.
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Solith
post 18.Sep.2018, 08:07 AM
Post #8
Joined: 9.Jul.2006

QUOTE (skogsbo @ 12.Sep.2018, 12:54 PM) *
In Sweden profit from home sales is only taxed if it isn't reinvested in another property. So don't down size and family summer or winter stugas remain in the family to reduce tax liability.


That's not true, it's always taxed but it's a matter of when you pay it... you can defer it if you buy a property of equal or higher value, but this deferment incurs an annual fee, and you have to pay it eventually when you a) sell a property without buying another of equal or higher value in the next 12 months or cool.gif calculate that it's costing you more to defer it than you would earn on the amount placed in a fund.
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skogsbo
post 18.Sep.2018, 09:10 AM
Post #9
Joined: 20.Sep.2011

QUOTE (Solith @ 18.Sep.2018, 07:07 AM) *
That's not true, it's always taxed but it's a matter of when you pay it... you can defer it if you buy a property of equal or higher value, but this deferment incu ... (show full quote)

Which represents what proportion of sellers? 0.00...% 2nd homes stay in the family for years. Or use other methods to loosely gift their large home to the next generation and avoid paying tax at anything like the full rate. People aren't losing out, it's a pretty generous system now inheritance tax has gone.
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skogsbo
post 18.Sep.2018, 09:11 AM
Post #10
Joined: 20.Sep.2011

QUOTE (GamlaSkogHisingHope @ 18.Sep.2018, 06:33 AM) *
Get some proper advice rather than listening to these posters.The BTL tax regime is shifting to make it less attractive, so by 2020 the tax position will be very different and ... (show full quote)

The change in interest payments is the latest. But there will be more if Brexit bites and they look for easy targets to hit. It is certainly fluid.
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