The Sweden–Spain Double Taxation Treaty – Overview 2026

If you own property in Spain and are liable to tax in Sweden you risk being taxed in both countries — on rental income, capital gains on sale and even on your pension. The double taxation treaty between Sweden and Spain (ordinance 1977:75) prevents this by allocating taxing rights and giving you the right to a tax credit. In practice this means you should never pay more total tax than what the higher-taxing country charges.

The treaty was signed in 1976 and is still in force, with protocol amendments. It covers income tax, capital gains tax and wealth tax — and it directly affects how you declare your Spanish property in Sweden, and vice versa.

This guide covers which income is taxed where, how the credit method works in practice, which forms you need — and the most common mistakes Swedes make.

What is the double taxation treaty between Sweden and Spain?

The double taxation treaty (Spanish: Convenio para evitar la doble imposición) is a bilateral tax agreement that regulates which state has the right to tax which income. The purpose is simple: you should not have to pay full tax in two countries on the same income.

The treaty between Sweden and Spain is based on the OECD model convention and was signed on 16 June 1976. It entered into force in 1977 and has since been supplemented by an amending protocol. In Swedish law it can be found in ordinance (1977:75) on the double taxation treaty between Sweden and Spain.

The treaty applies to:

• Income tax — rental income, employment income, pension, capital gains
• Wealth tax — relevant in Spain but not in Sweden (abolished in 2007)
• Natural and legal persons — both individuals and companies

What income does the treaty cover?

The treaty allocates taxing rights between Sweden and Spain for all income types. Here is an overview of the most important categories for Swedish property owners in Spain:

The practical consequence: most Swedish property owners who live in Sweden pay tax in Spain first (where the property is located), and then claim a credit in their Swedish tax return.

How is rental income from Spanish property taxed?

Taxation in Spain

If you rent out your Spanish home, the rental income is taxed in Spain regardless of where you live. As an EU/EEA national you are taxed at 19% on the net income — that is after deductions for costs such as community fees, insurance, repairs, IBI and mortgage interest.

The return is filed via Modelo 210 with the Agencia Tributaria. Since 2025 all rental income can be declared in a single annual submission (deadline: 20 January of the year after the income year), instead of the previous quarterly reporting.

If you own a property that you do not rent out, Spain still calculates a notional income (renta imputada): the rateable value × 1.1% (or 2% if the rateable value has not been revised in the past 10 years), taxed at 19% for EU/EEA nationals. This typically amounts to 100–300 euros per year.

Taxation in Sweden

If you are subject to unlimited tax liability in Sweden (live or have material connections there), you must declare rental income in your Swedish income tax return. The income is taxed as capital income (30%) for private letting of your own home, with a standard deduction of 40,000 kronor plus 20% of the rental income.

The Spanish tax you have already paid is credited against the Swedish tax — so you only pay the difference in Sweden, if the Swedish tax is higher.

How is capital gain on the sale of Spanish property taxed?

Taxation in Spain

If you sell a property in Spain as a non-resident, the capital gain is taxed at 19%. The gain is calculated as the difference between the sale price and the original acquisition cost (including purchase costs such as taxes, notary fees and solicitor fees).

On the sale, the buyer is required to withhold 3% of the purchase price (retención) and pay it directly to the Spanish tax authorities as an advance payment on your capital gains tax. If the actual tax is less than 3%, you can claim a refund of the difference via Modelo 210 within four months of the sale.

In addition to the national capital gains tax there is plusvalía municipal — a municipal tax based on the increase in the land's rateable value during your period of ownership. The amount varies between municipalities but typically amounts to 500–3,000 euros for a property on the Costa Blanca.

Taxation in Sweden

If you are subject to unlimited tax liability in Sweden, the capital gain must also be declared here. In Sweden capital gains on foreign property are taxed as capital income at an effective rate of 22% (30% tax on 22/30 of the gain).

You claim a credit for the Spanish tax (19%) via form SKV 2703. Since the Swedish effective rate (22%) is higher than the Spanish rate (19%), you pay the difference — approximately 3 percentage points — to Skatteverket in practice.

Read more about all taxes on sale in our complete guide on tax when selling Spanish property.

How is Swedish pension taxed if you live in Spain?

Pension taxation is one of the most complex areas of the double taxation treaty — and the one that affects the most Swedish pensioners on Costa del Sol and the Costa Blanca.

The basic rule

If you are tax resident in Spain (spend more than 183 days per calendar year there or have your economic centre there), you are subject to unlimited tax liability in Spain. This means Spain taxes all your income, including your Swedish pension.

At the same time Sweden has the right to tax pension paid from here. Sweden levies SINK (Special Income Tax for Non-Residents) at 22.5% from 1 January 2026, with a further reduction to 20% from 2027.

How do you avoid double taxation?

The double taxation treaty places on Spain (as the state of residence) the obligation to eliminate double taxation. In practice this means that in your Spanish tax return (Modelo 100) you can credit the SINK you paid in Sweden against the Spanish tax on the same pension.

Spain's income tax for residents is progressive:

Regional tax rates vary — the figures are national average rates.

If your Swedish pension is taxed at SINK 22.5% and the Spanish marginal tax on the same amount is 30%, you pay the difference (7.5%) in Spain. You never pay double — but you always pay the higher of the two tax rates.

How do you avoid double taxation in practice?

Step 1: Establish where you are tax resident

Your tax residence determines which country is your "state of residence" and which is the "source state" — and that in turn determines which rules in the treaty apply.

You are tax resident in Sweden if you:

• Live permanently in Sweden
• Have material connections (family, home, work) to Sweden
• Have not applied for and received approval of emigration from Skatteverket

You are tax resident in Spain if you:

• Spend more than 183 days per calendar year in Spain
• Have your economic centre (centro de intereses económicos) in Spain
• Have your family (spouse/partner and minor children) resident in Spain

If both countries consider you to be resident with them, the conflict is resolved by the treaty's tie-breaker rules (Article 4): permanent home, personal and economic ties, length of stay, and as a last resort nationality.

Step 2: File tax returns in both countries

Always declare property income in Spain (the source state). If you are subject to unlimited tax liability in Sweden, report the same income in your Swedish tax return. If you are resident in Spain, your global income (including your Swedish pension) is included in your Spanish tax return (Modelo 100).

Step 3: Claim the credit

In the state of residence you claim a credit for the tax paid in the source state. In Sweden you do this via form SKV 2703 (Credit for foreign tax). In Spain the credit is applied directly in the return (box for deducción por doble imposición internacional).

How does the credit method work?

The credit method is the technique used by the treaty between Sweden and Spain to eliminate double taxation. Here is how it works:

The principle: The tax you have paid in the source state (e.g. Spain) can be deducted against the tax in the state of residence (e.g. Sweden) — but never more than what the state of residence levies on the same income.

Example — rental income:

You rent out your apartment in Torrevieja and earn €10,000 in net rent per year.

1. Spain taxes the net income at 19% = €1,900
2. Sweden taxes the same income (after standard deduction) — let us say the Swedish tax comes to €2,500
3. You claim a credit in Sweden: 2,500 – 1,900 = €600 to pay in Sweden
4. Total tax: €1,900 (Spain) + €600 (Sweden) = €2,500 — you never pay more than the higher tax

Limitation: The credit can never exceed the Swedish tax on the income. If the Spanish tax is higher than the Swedish tax, you can only credit up to the Swedish tax — the difference "disappears". In practice this rarely happens for standard income, but it can arise with plusvalía municipal and other Spanish additional taxes.

Where to file — a checklist

What are the most common mistakes?

Many Swedes with property in Spain make unnecessary and sometimes costly errors. Here are the most common ones:

1. Not filing a tax return in Spain at all

The most common mistake of all. Even if you do not rent out your property you must declare imputed rent via Modelo 210 every year. Many Swedish owners are unaware of this requirement and only discover it during an audit or on sale, when unpaid taxes with interest and penalties can amount to thousands of euros.

2. Not claiming the credit in Sweden

You pay 19% tax in Spain on your rental income and then declare the same income in Sweden — but forget to complete form SKV 2703 for the credit. Result: you pay full tax in both countries. The credit does not happen automatically — you must actively claim it.

3. Assuming the 183-day rule is optional

Spain and Sweden now automatically exchange information. If you spend more than 183 days in Spain without filing as a resident there, you risk tax surcharges and back-tax assessments. It does not help that you "only" have a winter residence or that you are "not registered" in Spain.

4. Confusing source state and state of residence

The credit method requires you to know which state is your state of residence and which is the source state. If you confuse them — for example by claiming a credit in the wrong country — you can end up in a situation where no credit is given at all.

5. Not including plusvalía in the cost calculation

On a sale many people forget plusvalía municipal — the municipal tax that cannot be credited in Sweden and thus becomes a pure additional cost.

Frequently asked questions about the double taxation treaty

Last updated: April 2026. The double taxation treaty and tax rates can change — always check current rules with Skatteverket and the Agencia Tributaria or a qualified tax adviser. This guide does not constitute tax advice and does not replace professional advice tailored to your specific situation.