Planning construction work, a property investment or a real-estate project in Sweden? Skattepunkten helps property owners, construction businesses and investors understand the Swedish VAT and income tax questions, including when owners or contractors are based abroad.
Reverse charge VAT, self-supply VAT and the special income tax rules for construction and property trading can affect a project, an ownership structure or a transfer. We explain the Swedish issues in English and help you assess the position before the next decision.
Get an overview before the next decision
Need help with a construction or property project?
Tell us about the property, the planned work, the ownership and the question you want to resolve. We can then identify the Swedish tax issues and the information needed for an initial assessment. Registration is not an order.
If you have any questions before submitting your registration, you are always welcome to contact us.
Advice based on the property and the activities
How we help with Swedish construction and property tax
A useful assessment starts with what is actually being built, owned, let or transferred. We consider the parties, agreements and financing together, while keeping VAT and income tax questions distinct.
VAT in construction
We help you assess the VAT treatment of construction services, work on your own property and the way a property is used.
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- Reverse charge VAT in the construction sector
- Self-supply VAT on construction work on own properties
- Input VAT deductions and property letting
- Contracts, invoicing and VAT reporting
- … and more
Property & income tax
We review how construction activities, property trading and ownership can affect the tax treatment of property and company holdings.
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- Construction businesses and trading in real estate
- Property held as a capital asset or trading stock
- Swedish byggmästarsmitta rules and ownership links
- Property-company shares and planned ownership changes
- … and more
Projects & cross-border business
We identify the Swedish tax questions when a project involves foreign contractors, overseas owners or several companies and advisers.
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- Swedish registration questions for foreign businesses
- Project structure, contracts and subcontractors
- Acquisitions, disposals and restructuring
- Coordination with accounting and advisers abroad
- … and more
A clear path from the project to the next steps
How we work
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Describe the property and project
Tell us what is being built, owned, let or transferred, who is involved and the planned timetable. Include any foreign owners, contractors or other international connections.
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Review ownership and records
We review relevant ownership details, agreements, construction work, invoices, financing and previous tax treatment. The assessment starts with the actual activities and use of the property.
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Assess the tax questions
We distinguish VAT from income tax, identify the rules that may apply and explain the alternatives in English. We also identify where more records or local advice in another country are needed.
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Agree the next steps
Within the agreed assignment, we help with the next steps for accounting, VAT returns, income tax reporting, transaction planning or contact with the Swedish Tax Agency.
Swedish construction and property questions explained in English
Frequently asked questions about construction and property tax
What is reverse charge VAT in the construction sector?
It means that the buyer, rather than the seller, accounts for the VAT. It applies to specified construction services when the relevant conditions are met. We assess the service, the parties and their activities before deciding how it should be invoiced.
Can work on our own property give rise to VAT?
Yes, certain construction or property-management work on a business's own property can be subject to self-supply VAT, known as uttagsbeskattning. The assessment depends on the activities, the work performed and the use of the property; it is not a general rule for every property owner.
What is byggmästarsmitta?
This Swedish concept concerns situations where construction or property-trading activities can affect the tax classification of property, including through certain ownership or related-party links. Property may be treated as trading stock rather than as a capital asset. The circumstances and applicable exceptions need to be reviewed.
Can the special rules also affect shares in a property company?
Yes. Special income tax rules for construction businesses and property trading can also affect the classification of certain holdings in property companies. The ordinary assumptions about capital gains on property or shares should not be applied without reviewing the activities and ownership.
Can letting a property affect VAT deductions?
Yes. The use of the property and the type of letting can affect VAT and the right to deduct input VAT. Voluntary VAT liability for letting business premises may be relevant, but the conditions must be assessed for the particular property and letting arrangement.
Can a foreign construction business need Swedish registration?
It may need to register in Sweden, depending on its activities and transactions. We review the Swedish project, customers, subcontractors and the relevant VAT and income tax questions. A foreign registration or an assumption about the length of the project is not enough to settle the position.
Are the VAT and income tax assessments the same?
No. They concern different rules and must be considered separately. For example, the VAT treatment of construction work does not by itself decide whether a property is trading stock for income tax purposes. For foreign businesses, registration and establishment questions also need to be assessed under the relevant rules.
Can you advise before a purchase, sale or restructuring?
Yes. We consider the property, its use, the ownership structure and the proposed steps together. A change of company, owner or project structure can raise new VAT or income tax questions, so the assessment should take place before implementation.
What information should we prepare?
Start with the property details, ownership structure, project description and timetable. Relevant contracts, invoices, details of your own work and subcontractors, financing and previous tax treatment help us identify the questions that need to be assessed.
When should we contact you about a construction project?
Preferably before contracts are signed, major work starts or a transfer is completed. You can also begin with a specific VAT or income tax question within a larger project. We agree the scope of the initial assessment and discuss any further work needed.
Want help with construction and property tax?
Register as a new client so we can consider how we can help you. Registration is not an order. If you have any questions before submitting your registration, you are always welcome to contact us.
Swedish expertise with international reach
When a property project involves more than one country
Foreign ownership, contractors or financing can mean that the Swedish assessment needs to be coordinated with advice in another country. Through ETL GLOBAL, Skattepunkten can coordinate with relevant local specialists when the assignment calls for it.
You retain a clear contact in Sweden. Accounting, company-law and other advisers can be involved where relevant to the agreed scope of work.
Official guidance
Relevant links
English guidance on registering a foreign business, followed by the Swedish Tax Agency's more detailed construction and property-classification guidance, marked below.
This page provides general information, not an assessment of a particular project or property. The tax treatment depends on the activities, ownership, property use, work performed, agreements, relevant tax year and other circumstances. International projects may also require advice on the other countries' rules and applicable tax treaties.