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What is the interest withholding rate between Luxembourg and Sweden?

The Luxembourg-Sweden tax treaty reduces the withholding rate on interest payments to 0%. This means interest paid between residents of these two countries is exempt from withholding tax at source. This is particularly beneficial for cross-border debt financing and bank deposits. The 0% rate still requires proper documentation β€” it does not apply automatically. Interest is fully exempt β€” Luxembourg has 15 such treaties in its network.

Network Comparison

Luxembourg

Rank 12 of 27 active treaties (lowest rate = #1)

Lower rates with: Ireland (0%), Netherlands (0%), Norway (0%)

Higher rates with: Singapore (0%), United States (0%), South Africa (0%)

Sweden

Rank 12 of 44 active treaties (lowest rate = #1)

Lower rates with: United Kingdom (0%), Hungary (0%), Ireland (0%)

Higher rates with: Netherlands (0%), Norway (0%), Poland (0%)

Sources

Data last reviewed: 2026-04-07

Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax β€” the residence country may still tax the income. This is not tax advice.

Related Questions: Luxembourg - Sweden