The fact that Sweden has no "exit tax" has created the opportunity for an alienation of participations in Swedish companies free of tax if the sales contract has been signed after a transfer of residence from Sweden to Austria. Although - according to OECD-principles - the tax treaty with Sweden has allocated the entire taxing right to Austria in such cases, only capital gains generated in the period of Austrian residence are taxable under the Austrian "exit-tax-concept", this being so in the case of emigration but also in the case of immigration. Consequently, Sweden was prevented from taxing the capital gains because of the tax treaty, whereas Austria did not tax the capital gains because of her domestic law. Such an opportunity to escape capital gains taxation has now been terminated through a revising protocol providing for a taxation right to the (former) residence country with regard to the capital gains generated prior to the transfer of residence.