The fact that the country’s pensioners should have it much more convenient in older days, many people believe, as well as that tax on pension should be excluded.
Others believe that the tax is important for everyone to pay, professionals as a pensioner, as it contributes to maintaining the Swedish welfare system that houses everything from healthcare, care, school and education.
While in many respects it can be a real water divider that the country’s seniors continue to pay taxes after completing their professional life, there are actually the places in the world where you do not have to estimate a penny. At least not if you do not have a pension that reaches the equivalent of SEK 90,000.
Advisory company nomadax states on its homepage that there are the countries in Europe where pensioners estimate significantly less than they do in Sweden. Four of them are Montenegro, Italy, Portugal and Malta – all of which have become increasingly popular countries for pensioners to apply for, as have Swedes.
One of the countries that stand out, on the other hand, is Montenegro, the small country along the coast of the Adriatic Sea, and which was once part of former Yugoslavia. To attract tourists, Montenegrin authorities offer very favorable tax rules – not least for pensioners.
They have applied a nine percent tax rate for the vast majority of income and from 2022 the tax system was reformed in the country.
In Montenegro, zero percent tax on annual income is now paid up to EUR 8,400, corresponding to just over SEK 90,000. In addition, you only pay nine percent tax on income amounting to between EUR 8,400 and EUR 12,000, which corresponds to just over SEK 130,000.
Finally, tax reforms have resulted in income exceeding EUR 12,000 is taxed at 12 percent.
In conclusion, nomadax concludes that at the same time as the tax is significantly lower and more advantageous than in Sweden, there is also an enhanced basic deduction. In 2025, it amounts to EUR 9,732, just over SEK 100,000.