"He was arrested and has to serve an eight-month prison sentence," police spokesman Carolina Ekeus told AFP.
The 35-year-old was arrested over the weekend in the southern region of Skaane and must now serve the sentence for violating copyright laws he received in Sweden in 2010.
Sunde and three other men linked to The Pirate Bay - Carl Lundstroem, Fredrik Neij and Gottfrid Svartholm Warg - were handed prison sentences ranging from four to ten months and a joint fine of 46m kronor (€5.36m).
Sunde had been wanted by Interpol for almost two years and was reportedly hiding in Germany. The Swedish Supreme Court rejected an appeal from him in late May.
"Peter fought for file-sharing and in ten years, I believe it will go without saying that file-sharing for one's own needs will be permitted," Sunde's lawyer Peter Althin told Swedish news agency TT.
"I still think the judgement was wrong," he said.
Fellow Co-founder Warg was arrested in Cambodia in 2012 at Sweden's request. Founded in 2003, The Pirate Bay allows users to skirt copyright fees and share music, films and other files using bit torrent technology, or peer-to-peer links offered on the site.
The famous file-sharing service still exists and is now registered in the Seychelles, according to a statement on its website.
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