Press Release: Commission requests Sweden to change discriminatory rules on tax relief for capital gains arising from home sales

The European Commission on 15 July 2005 sent Sweden a formal request to amend its legislation according to which capital gains from home sales attract tax relief only if the sold home is situated in Sweden and the sales proceeds are reinvested in a replacement residence in Sweden. The Commission considered that not allowing tax relief where the original dwelling is situated outside Sweden or where the proceeds are used to acquire a replacement home in another Member State is contrary to EC Treaty rules, including those on the free movement of persons.