Israel – Sweden Tax Treaty
The Israel-Sweden tax treaty caps withholding on dividends at 15% for portfolio investors and 5% for qualifying direct investment, and interest at 10%. Royalties are taxed at a uniform 0% across all categories. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 24 active treaties in Israel's network and one of 44 in Sweden's. The general dividend rate of 15% compares to a median of 15% across Israel's network and 15% across Sweden's.
Verified data
Israel Tax Authority (taxes.gov.il / gov.il) - Tax Treaty network (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12).)
Withholding Rate Summary
Source: Israel Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Israel) |
|---|---|---|
| Dividends (general) Portfolio investors | 15%saves 10% | 25% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 5%saves 20% | 25% |
| Interest Bank interest, bonds, loans | 10%saves 15% | 25% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 0% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (Israel)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 15% applies to portfolio investors. A reduced rate of 5% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 25%.
Source: Israel Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 10% withholding under this treaty, compared to the 25% statutory rate. This represents a 15% reduction from the statutory rate.
Source: Israel Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 0% to 0%.
Source: Israel Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: Israel Treaty Reference
Comparative Context
🇮🇱Israel's Network
Among Israel's 24 active treaty partners, the 15% general dividend rate ranks 21th (median: 15%).
| Partner | Rate |
|---|---|
| Netherlands | 15% |
| Philippines | 15% |
| Portugal | 15% |
| Sweden (this treaty) | 15% |
| Slovak Republic | 15% |
| South Africa | 15% |
| United States | 25% |
🇸🇪Sweden's Network
Among Sweden's 44 active treaty partners, the 15% general dividend rate ranks 27th (median: 15%).
| Partner | Rate |
|---|---|
| Hungary | 15% |
| Indonesia | 15% |
| Ireland | 15% |
| Israel (this treaty) | 15% |
| Italy | 15% |
| South Korea | 15% |
| Luxembourg | 15% |