Sweden has no inheritance tax — do I still pay US estate tax?
Short answer: Yes. Sweden abolished both inheritance tax (arvsskatt) and gift tax (gåvoskatt) at the end of 2004, so your children or heirs owe nothing to Sweden on what they inherit. The United States taxes its citizens and domiciliaries on their worldwide estate regardless of where they live, so a US citizen in Sweden remains fully exposed to US estate tax, with no Swedish inheritance tax to credit against it because none exists.
Written and reviewed by Anthony Walsh, Selanis. Last reviewed 2026-10-09.
Why it works this way
Sweden's abolition applies to deaths and gifts from 1 January 2005 onward; before that date, Swedish arvsskatt did apply, which is occasionally still relevant for older cross-border estate questions.
The absence of a Swedish inheritance tax does not touch US estate tax exposure at all — the US estate tax applies to the worldwide assets of US citizens and domiciliaries above the available exemption, which is a US-law question entirely separate from what Sweden charges.
Where a spouse is not a US citizen, the unlimited marital deduction does not apply automatically, so a Swedish-citizen spouse inheriting a large US-connected estate can face a US estate tax bill that a US-citizen spouse would not — a gap often missed because Sweden itself charges nothing.
The expensive mistake: Assuming 'no inheritance tax in Sweden' means no inheritance tax at all
Families who have lived in Sweden for years sometimes stop estate planning altogether because Sweden charges nothing. The US estate tax exposure continues in the background the entire time.
What to do
- Confirm your US citizenship or domicile status — This determines whether worldwide assets are in scope for US estate tax.
- Check whether a spouse is a US citizen — A non-citizen spouse changes the marital deduction analysis significantly.
- Build a US estate plan independent of Swedish rules — Use the tools available under US law — trusts, gifting, insurance — regardless of what Sweden charges.