Yield tax on foreign life insurance
Persons who are living in Sweden and have a foreign pension insurance or endowment insurance, are normally subject to taxation for such income in Sweden. The regulations for yield tax on endowment insurances were amended as of the 2012 income year (tax return 2013).
Insurance coverage provided by a foreign insurance company is regarded as endowment insurance if it is not:
- what is known as an “endowment pension policy” provided by an insurance company within the EEA area,
- a pension insurance policy that commenced on 2 February 2007 or later, and provided by an insurance company within the EEA area, or
- a policy that, subject to certain terms and conditions, should be regarded as pension insurance.
If you are subject to unlimited taxation in Sweden and are covered by the above insurance policies, it rests upon you to pay Swedish yield tax. The yield tax that you pay shall correspond to the yield tax paid by Swedish life-insurance companies for equivalent insurance policies in Sweden.
Being “subject to unlimited taxation in Sweden" refers to your being a taxpayer in Sweden due to being domiciled or regularly staying in Sweden. You may also be subject to unlimited taxation if you have previously lived in Sweden and maintain significant ties to Sweden.
The regulations for yield tax on endowment insurance were amended as of the 2012 income year (tax return 2013). This is aimed at keeping tax on endowment insurance neutral in relation to the taxation of investment savings accounts. The amendment entails that the tax bases of yield taxes on endowment insurance and pension insurance are now calculated differently.
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