Tax on foreign pensions
My questions relate to possible future retirement in Sweden. I am an American citizen, married to a Swede. I have never lived in Sweden. My wife has been out of the country for many years and has not built up any appreciable pension rights in Sweden.
My pension payments will come from both France (both state and private parts) as well as from private company pension providers based in the US, Dubai and the Virgin Islands.
Will all these pension payments be subject to normal income tax once we have retired to Sweden, or is there any legal means to avoid some of this tax?
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When you have become a resident in Sweden your tax liability in Sweden will be unlimited - you will be liable to tax on all your income including pensions from Sweden and from other countries. However certain income can be exempt from liability to tax according to tax treaties.
According to the tax treaty between Sweden and France your state pension from France will be exempt from Swedish tax as long as you are not a Swedish citizen. It will be taxed only in France. Your pension from a private company in France will be taxed in Sweden and only in Sweden.
Your pension from a private company in USA will according to the tax treaty between Sweden and USA be taxed only in Sweden. As long as you are a US citizen USA may according to an overriding taxing right in the treaty want you to pay tax on the pension also in USA. You will have to ask IRS about that. If you have to pay tax in USA that tax may be deducted från the Swedish tax on the same pension.
There are no tax treaties between Sweden and Dubai and the Virgin Islands. Your pensions from those countries will be taxed in Sweden. If you have to pay tax on the pensions also in Dubai and in the Virgins Islands the tax you have paid in those countries may be deducted from the Swedish tax on the same pensions.
There are no legal means to avoid the tax you have to pay on your pensions in Sweden.