France tax treaty Sweden : your property in France

In both countries. France taxes the rents (article 6) and Sweden also taxes them, deducting French tax from its own tax (article 23 § 2 a). In practice you bear the higher of the two.

Yes if the letting leaves a surplus after the Swedish allowances. In the private housing regime, annual rent below about 50,000 SEK leaves no surplus (40,000 SEK plus 20% of the rent).

Only if you or your relatives plan to occupy it within a foreseeable period, most often three years at most according to Skatteverket. Otherwise, it is an investment property: actual costs are deductible, but it is taxed at the scale for business income.

No if it is private housing: Skatteverket states that you pay neither fastighetsskatt nor fastighetsavgift, and the taxation targets letting and sale. For an investment property, a benefit in kind must be declared.

No in the private housing regime, which ignores actual costs. It reduces French tax, and therefore the credit, which can increase what you pay in Sweden.

Yes. It takes 22% of the gain for private housing and 27% for an investment property, with no allowance for length of ownership, and deducts French tax (articles 13 § 1 and 23 § 2 a).

Sweden taxes the whole gain and you have no French tax to deduct. In France, the 7.5% levy remains due up to 30 years.

Not without prior calculation. The SCI removes the €150,000 exemption on resale, the Swedish private housing regime and therefore the 22% rate. It can make your own occupation of the property taxable in Sweden. The anti-abuse clause of article 28 A also targets arrangements where the tax advantage is one of the main purposes. Have the structure validated by a Swedish tax adviser before signing.

No. Sweden is an EU member and is bound to France by the required assistance conventions.

Yes if the net value of your French real estate exceeds €1.3M on 1 January (article 22). Sweden no longer levies a wealth tax.

7.5% if you are affiliated to the Swedish social security system and not dependent on any French scheme. Remember to tick box 8SH or 8SI. Otherwise, 17.2% on unfurnished rental and on capital gains, 18.6% on furnished rental.

No. It abolished its inheritance and gift duties at the end of 2004. On your French apartment, your heirs pay French duties, with no additional Swedish tax.

Yes, in France (article 5 of the 1994 convention), after the €100,000 allowance per child. If they live in Sweden and sell, they will also be taxed in Sweden on the gain calculated from your original purchase price.

Yes. The 1994 convention also covers gifts. France taxes the property and Sweden levies no tax on the gift. The child takes over your purchase price for the Swedish calculation of a future sale.