Tax rules overview
A crucial subject is how dividends are taxed. Tax rules for Swedish unlisted companies depend on whether the company is a closely held company (3:12 rules) and how you hold the shares.
1. Owning shares privately
- Unqualified shares (not closely held): Dividends are normally taxed at an effective rate of 25% (5/6 of the dividend is taxed as capital income at 30%).
- Qualified shares (closely held): Dividends up to a threshold amount are taxed at 20%. Dividends exceeding this are taxed higher, usually as employment income.
2. Owning via a holding company (AB)
This is the most common structure for more active investors. Unlisted shares are usually classified as *business-related shares* (näringsbetingade andelar).
This means that dividends the company distributes to your holding company are usually completely tax-free. Tax only arises the day you withdraw the money from your own holding company to yourself privately.
Summary
Structuring your ownership via a holding company can defer taxation and often lower the overall tax burden on dividends.