Arvsskatt

Arvsskatt, or inheritance tax, is a tax on the transfer of assets from a deceased person to heirs, and historically it also covered certain gifts made during a person’s lifetime. In Sweden, arvsskatt and the related gåvoskatt (gift tax) were part of the tax system for much of the 20th century, with the burden falling on the recipient. The tax levels and exemptions varied over time, with closer relatives typically receiving more favorable treatment and higher exemptions for smaller bequests.

As part of a major tax reform, Sweden abolished arvsskatt and gåvoskatt for transfers that occurred after 1 January 2005. Since then there is no general inheritance or gift tax in Sweden. The change affected estate and gift planning by removing a state levy at the point of transfer and shifted the emphasis to other aspects of taxation and legal planning.

In practice, the abolition means heirs and recipients do not face a state levy on inherited assets at the time of transfer. Other taxes may still apply in connection with later events, such as the sale of inherited assets, through capital gains tax or other tax rules, but there is no specific arvsskatt.

See also: inheritance tax in other jurisdictions, gift tax, Swedish tax reforms, capital gains tax.