Guide to Property Taxes in Sweden
Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 17.50% | 17.50% | 23.60% |
Nonresident individuals are generally taxable in Sweden on Swedish-source income, including income and gains derived from Swedish real estate. Married individuals are generally taxed separately.
Income Tax
Swedish individual income is divided into income from employment, business activities and capital.
For 2026, national income tax on earned income is:
| Income Tax (SEK) | National income tax (%) |
| From 0 to 643,000 | 0% |
| Over 643,000 | 20% |
Municipal income tax applies separately, with the rate depending on the municipality. The average rate is approximately 32%.
These progressive earned-income rates should not be applied automatically to ordinary rental income from a qualifying private residence.
Rental Income - Private Residential Property
Rental income from a qualifying private residential property is generally taxed as capital income. The taxable rental surplus is subject to 30% income tax.
A standard deduction of SEK 40,000 per property per year is generally available.
For a qualifying privately owned house, an additional deduction equal to 20% of gross rental income is generally available. Actual operating expenses are generally not deducted separately under this regime.
For a qualifying owner-occupied apartment (bostadsrätt), the taxpayer can generally deduct the SEK 40,000 standard amount plus the proportion of the housing-association fee attributable to the rented portion and rental period, rather than using the 20% deduction applicable to a house.
Rental Income – Business Property
A property that does not qualify as the owner's private residence can instead constitute a business property (näringsfastighet).
Rental income from such property is taxed under the business-income rules. Expenses attributable to earning the rental income, including qualifying operating expenses, interest, repairs and depreciation, can generally be deductible.
This distinction is particularly important for a foreign investor acquiring Swedish residential property purely as an investment and with no intention of using it as their own qualifying private residence.
Rental Income Tax Verdict
For a nonresident foreign investor holding Swedish property purely as an investment, the business-property regime is generally the more relevant comparison. Assuming deductible operating expenses equal to 30% of gross rental income, annual gross rents of €18,000, €72,000 and €144,000 produce taxable business profits of €12,600, €50,400 and €100,800, respectively.
The resulting estimated Swedish income tax is approximately €3,150, €12,600 and €34,005, respectively. The first two levels are effectively taxed at 25% of net taxable business income. At the highest level, part of the taxable income exceeds Sweden's 2026 national income-tax threshold of SEK 643,000 and is therefore subject to an additional 20% national income tax.
For a property that instead qualifies as the owner's private residential property, rental surplus is generally taxed at 30% as capital income. For a qualifying private house, applying the SEK 40,000 annual standard deduction and the additional 20% gross-rent deduction produces estimated income tax of approximately €3,260, €16,220 and €33,500 at the three respective rental levels.
As a percentage of gross rental income, the effective tax rates for the pure investment/business-property scenario are approximately 17.5%, 17.5% and 23.6%, respectively, while the effective rates for the qualifying private-residential-property scenario are approximately 18.1%, 22.5% and 23.3%, respectively.
Capital Gains Tax
Capital gains from the disposal of qualifying Swedish private residential property are effectively taxed at 22%.
Different rules apply to property classified as business property.
Corporate Taxation
Swedish companies are generally subject to corporate income tax at 20.6% on taxable profits, including taxable rental income and capital gains.
Qualifying expenses incurred in earning taxable income are generally deductible subject to Swedish corporate tax rules.
Property Buying and Selling Taxes/Costs
| Tax Type | Rate |
| Property Transfer Tax | 1.50% - 4.25% |
| Agent Fee (Buyer) | - |
| Agent Fee (Seller) | 3.00% - 5.00% |
| Legal Fees | 1.00% - 1.50% |
| Notary Fee | 0.10% |
| Costs Paid By Buyer | 2.60% - 5.85% |
| Costs Paid By Seller | 3.00% - 5.00% |
| Roundtrip Cost | 5.60% - 10.85% |
| Source: Global Property Guide, PWC, Skatteverket | |
Annual Property Holding Tax
Swedish residential property can be subject to an annual municipal property charge (kommunal fastighetsavgift).
For a completed single-family residential property, the charge is generally 0.75% of the tax-assessed value, subject to an annual maximum amount. It is therefore incorrect to describe the charge as the greater of 0.75% and a fixed amount: the fixed amount is a cap.
For 2026, the maximum municipal property charge for a completed single-family house is SEK 10,425 per residential building.
For a residential unit in an apartment building, the 2026 charge is generally 0.3% of the tax-assessed value, capped at SEK 1,784 per apartment.
Certain properties instead attract state real estate tax. For example, commercial premises are generally subject to a 1% state property tax, while industrial property is generally subject to 0.5%.
Property Transfer Tax
Acquisition of Swedish real property generally attracts stamp duty (stämpelskatt) at:
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1.5% for an individual purchaser; and
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4.25% for a legal entity.
The tax base is generally determined under the applicable rules by reference to the higher relevant property value.
Different rules apply to transfers of interests in housing cooperatives (bostadsrätter), which are legally distinct from direct ownership of real property.
