Capital income

Capital income is income that comes from ownership rather than work: interest, dividends, rental income from private property and gains on the sale of shares, funds or property. The capital income category is taxed separately from employment income and business income, at a flat tax rate.

For part-owners who work in a close company (fåmansbolag), the line between capital and employment income is central. Dividends and gains within what is known as the threshold amount (gränsbelopp) are taxed as capital income at a lower rate, while amounts above the threshold are taxed as employment income under the 3:12 rules.

A deficit in the capital income category, for example from interest expenses, gives a tax reduction. Capital gains and capital losses can in some cases be offset against each other.