Sweden Proposes Broader Tax Exemptions for Dividend Income

The Swedish finance ministry is proposing to exempt foreign governments and regional governing bodies from withholding tax on dividend income received from Swedish companies.

The exemption would also apply to dividends received from European companies with registered offices in Sweden and dividends from mutual and special funds, according to a memorandum published June 9, which is part of a standard legislative process that requires formal government approval and parliamentary passage.

The proposed effective date is July 1, 2026.

To qualify for the exemption, the foreign government must either be from within the European Economic Area or have an ...