Commissie verzoekt Zweden tot wijziging wetgeving over belastingaftrek bij huisverkoop die buitenlanders discrimineert (en)

The European Commission has sent Sweden a formal request to amend its legislation according to which capital gains from home sales attract tax relief only if the sold home is situated in Sweden and the sales proceeds are reinvested in a replacement residence in Sweden. The Commission considers that not allowing tax relief where the original dwelling is situated outside Sweden or where the proceeds are used to acquire a replacement home in another Member State is contrary to EC Treaty rules, including those on the free movement of persons. The request is in the form of a `reasoned opinion' under Article 226 of the EC Treaty. If Sweden does not reply satisfactorily to the reasoned opinion within two months the Commission may refer the matter to the Court.

Under the Swedish tax law provisions contained in Chapter 47 of the Income Tax Act (Inkomstskattelagen) a resident individual taxpayer may benefit from a deferral of capital gains taxation upon sale of an owner-occupied dwelling, provided that he/she has acquired or intends to acquire a replacement dwelling, in which he/she has or intends to take up residence. However, both the original and the replacement dwelling must be situated in Sweden.

The unavailability of the deferral where either the original or the replacement dwelling is situated outside Sweden not only dissuades residents of other Member States and EEA countries from moving to Sweden but also dissuades Swedish residents from moving to other Member States and EEA countries. Those moving to Sweden and becoming subject to Swedish tax who sell their previous dwellings after having moved to Sweden cannot be granted the deferral even if they acquire replacement dwellings in Sweden. Similarly, those who live and own their dwellings in Sweden cannot be granted the deferral if they decide to move abroad and acquire replacement dwellings there.

The Swedish rules therefore restrict the exercise of the free movement of persons by migrant workers and by any other person wishing to move to or from Sweden. At the same time, they constitute an obstacle to the free movement of capital. The Commission considers that the territorial limitations of the tax relief violate EC Treaty rules on the right of residence in other Member States, free movement of workers, freedom of establishment and free movement of capital (Articles 18, 39, 43 and 56), as well as the corresponding provisions of the EEA Agreement.

The latest information on infringement proceedings against the Member States is available on the following site:

http://europa.eu.int/comm/secretariat_general/sgb/droit_com/index_en.htm