12.6 Property tax/property fee

     • 12.6.1 Property tax/Property fee
     • 12.6.2 Property tax when renting premises

12.6.1 Property tax/Property fee

The owner of a property in Sweden is obliged to pay property tax. Premises which are used for the functions of a diplomatic mission or as residence for the Head of Mission are exempted from this rule.

Consequently, missions and their staff members are obliged to pay property tax for any properties they own which are not used for the functions of a diplomatic mission or as a residence. The rule applies to embassies and consulates.

The Swedish Tax Agency provides a preprinted form (called "inkomstdeklaration" or "income tax return") to the property owner in April each year.

The preprinted amount is the property´s assessed value and the preprinted percentage determines/indicates how much tax is to be paid. After having received this form, the property owner is to verify the information and submit a signed version to the Swedish Tax Agency. In the event that the property has been sold, this must be declared in the same form.

In accordance with relevant Swedish regulations, the amount to be paid will be labeled either as a "property fee" or as a "property tax".

12.6.2 Property tax when renting premises

In Sweden, the owner of a property is obliged to pay property tax. Premises used for the purposes of a diplomatic mission or as the residence of the Head of Mission are exempted from this rule.

However, the exemption from taxation does not apply when the property tax is to be paid by the landlord entering into an agreement with the sending State or the Head of Mission (Art 23.2 Vienna Convention on Diplomatic Relations, Art 32.2 Vienna Convention on Consular Relations).

Whether the property tax is separately stated in the rental agreement or in another document, the landlord must still pay the property tax. Consequently, no reimbursement can be made for an amount that represents compensation for property tax to the owner of the property.