In Sweden, our entire society is built on paying taxes that go to the state. The tax system is the basis of Swedish welfare, which includes, for example, municipal schools, health care, libraries, refugee reception centers and public transportation. Tax is deducted from every working citizen's income, as well as other things like gasoline tax, tobacco tax and certain profits. Sometimes if you enter contests for things and money, the terms may say "Any income tax paid by the winner," and there is actually something called an income tax.
You actually have to pay tax on your winnings, but in a skattefria casinon that is not taxed, you avoid that. It has to be an achievement game to pay income tax. Examples of achievements are clues or knowledge such as quizzes. If you win money in a contest that falls into this category, the winnings are considered additional income, i.e., a source of income.
Thus, ordinary income tax applies as income tax in Sweden. Ordinary Swedish income tax is about 30% of earned income. What you do not have to pay income tax on is money you win in a lottery or casino in Sweden. This is not considered an achievement, but a coincidence, and therefore you don't have to pay tax on these achievements.
Tax-free casinos or do you have to pay tax?
As mentioned earlier, you have to pay tax on games based on performance. But if the gains occur outside of Sweden, you also have to pay tax on lotteries and casinos, such as online casinos. When we talk about online gambling now, we are referring to slot machines, odds/wagers, betting, poker, roulette and all the games that are normally offered at online casinos. But there is an important exception to this rule. If your winnings in a casino or lottery take place in a country that is part of the EU or the E.U., you do not have to pay income tax.
Declaration of untaxed income
As a Swedish citizen, you are required to declare all of your income to the Swedish Tax Agency. You do this by informing the Swedish Tax Agency of your income during each calendar year. Your casino winnings must be recognized as capital gains. If you have winnings from casinos outside the EU/EEA region, you must pay tax. You are the one who must keep track of your winnings while playing, and this also applies to small winnings, not just large jackpot winnings. Profits outside of the EU/EEA region that exceed SEK 100 must be assessed.
Read more: Swedish tax-free casinos
