Swedish Property Tax Guide 2026

Overview — Two Types of Property Tax

Sweden levies property tax in two forms depending on the property type:

• Fastighetsavgift (municipal property fee): A flat annual amount for residential properties (single-family homes and apartment buildings). This replaced the old value-based tax for residential properties in 2008.
• Fastighetsskatt (state property tax): A value-based tax of 1% of the tax value for commercial, industrial, and other non-residential properties.

Both are administered by Skatteverket and collected through the annual tax return. The property's tax value (taxeringsvärde) is reassessed every three years and reflects roughly 75% of the market value based on comparable sales.

Residential Fastighetsavgift — Single-Family Homes

For single-family homes (småhus), the annual property fee in 2026 is SEK 8,524. However, the fee is capped at 0.75% of the tax value. The actual amount payable is the lower of SEK 8,524 or 0.75% of the tax value. For most properties valued above approximately SEK 1,136,000 (SEK 8,524 / 0.75%), the flat fee of SEK 8,524 applies. For lower-valued properties, the fee is 0.75% of tax value.

• Floor amount: SEK 8,524 per year (even if 0.75% of tax value is lower)
• Cap: 0.75% of tax value
• Indexed annually: the SEK 8,524 amount is adjusted each year based on the income base amount (inkomstbasbeloppet)

A property with a tax value of SEK 1,500,000 would pay the floor of SEK 8,524 (not SEK 11,250 which is 0.75%). A property valued at SEK 800,000 would pay SEK 6,000 (0.75% of SEK 800,000).

Residential Fastighetsavgift — Apartment Buildings

For apartment buildings (hyreshus) with residential units, the fee is SEK 1,450 per residential unit per year. For commercial units within mixed-use buildings, a separate calculation applies using the commercial fastighetsskatt portion. The per-unit amount is also indexed annually. For a building with 20 rental apartments, the annual fee would be SEK 29,000 (20 × SEK 1,450).

Commercial Fastighetsskatt — 1% of Tax Value

Commercial properties (office, retail, industrial, warehouse, and other non-residential) are subject to fastighetsskatt at 1% of the tax value. Unlike residential properties, there is no cap or flat fee — the full 1% rate applies to the assessed tax value. For example, an office building with a tax value of SEK 20,000,000 incurs SEK 200,000 in annual property tax.

Special rates apply to certain property types: industrial properties pay 0.5% (until 2025, transitioning to 1% by 2028), hydroelectric power plants pay 2.8%, and wind power plants pay 0.2% of tax value. Property under construction may benefit from reduced or zero tax for up to 15 years (nybyggnadsreducering).

Tax Value — Taxeringsvärde

The tax value (taxeringsvärde) is Skatteverket's assessment of the property's market value, set at approximately 75% of market value. Reassessment occurs every three years on a rolling basis (every county is revalued in a three-year cycle). Property owners receive a preliminary tax decision and can appeal the assessment. The tax value is also used as the basis for other calculations including mortgage interest deductions and wealth assessments. For newly constructed properties, the initial tax value is set when construction is complete, with a 15-year exemption from tax reassessment increases for newly built residential buildings.

Mortgage Interest Deduction

Interest on mortgages is deductible in the capital income (kapitalinkomst) category:

• 30% deduction on interest costs up to SEK 100,000 per person per year
• 21% deduction on interest costs above SEK 100,000 per person per year
• For a couple (married or registered partnership), the SEK 100,000 threshold applies per person, so SEK 200,000 per household

Interest deductions are claimed on the tax return (Inkomstdeklaration 1) under capital income. If the total is negative (i.e., deductions exceed capital income), a tax credit is applied against earned income tax at the above rates. For example, if you paid SEK 80,000 in mortgage interest in 2026, you reduce your taxes by SEK 24,000 (30% of SEK 80,000).

ROT Renovation Deduction

Renovation and improvement costs on your primary residence qualify for the ROT deduction. See the personal income tax guide for full details. Key ROT figures for property owners:

• 50% deduction on labour costs for renovation, extension, and repair
• Maximum SEK 75,000 per person per year
• Applies to: bathroom renovation, kitchen renovation, painting, roofing, plumbing, electrical, flooring, garden work (driveways, fences, decks)
• Does not apply to: materials (only labour), own work, new construction of a home you do not already own

Capital Gains on Property Sale

When you sell a Swedish residential property, the capital gain is taxed under the 22/30 method:

• Only 22/30 (approximately 73.3%) of the actual gain is subject to tax
• That taxable portion is taxed at 30% (the standard capital income tax rate)
• Effective tax rate: 30% × 22/30 = 22%
• For property losses: 63% of the loss is deductible (50% up to 2019, the rate is now 63% for 2026)

Example: You bought a home for SEK 3,000,000 and sold for SEK 4,500,000 (gain SEK 1,500,000). Taxable portion: 22/30 × SEK 1,500,000 = SEK 1,100,000. Tax at 30%: SEK 330,000 (effective rate 22%).

A deferral (uppskov) of the capital gains tax is available if you buy a more expensive replacement home. The deferred amount is taxed at 3.25% imputed interest (schablonintäkt) annually. For 2026, the maximum deferral per person is SEK 1,500,000 for gains on sales from 2020 onwards. Deferrals can be permanent if the seller does not sell the replacement property during their lifetime.

For more detail on property capital gains, losses, and deferrals, see the separate Capital Gains Tax Guide.

Non-Resident Property Ownership

Non-residents can own Swedish property with no restrictions. Property taxes apply at the same rates as for residents. Non-resident owners must file a Swedish tax return to report the property (and any rental income) and pay fastighetsavgift or fastighetsskatt. Non-residents selling Swedish property are subject to capital gains tax at 22% effective rate (the 22/30 rule applies regardless of residence status). A Swedish tax representative may be required for non-residents for tax filing purposes.

FAQs

Is there stamp duty or transfer tax in Sweden?

Yes, stamp duty (stämpelskatt) applies on property purchases. For individuals, it is 1.5% of the purchase price (or tax value if higher). For legal entities, it is 4.25%. The duty is paid when the title is registered (lagfart) at the Swedish Land Registry (Lantmäteriet).

How do I appeal my property tax assessment?

Property owners can appeal the tax value (taxeringsvärde) to Skatteverket within the appeal period stated on the preliminary assessment. You should provide evidence of comparable sales in the area. Appeals go through Skatteverket's review process and ultimately to the Administrative Court.

Are foreign property holdings in Sweden taxed?

Yes, the owner of Swedish property is subject to Swedish property tax regardless of residence. Non-residents must register with Skatteverket for a coordination number (samordningsnummer) and file Swedish tax returns.

What is the difference between tomträtt and äganderätt?

Äganderätt is full freehold ownership where you own both the building and the land. Tomträtt is a leasehold right where you own the building but lease the land (often from the municipality). The leaseholder pays fastighetsavgift in most cases, similar to freehold owners.

Is the property fee deductible against rental income?

Yes, property tax (both fastighetsavgift and fastighetsskatt) is deductible as an operating expense against rental income when you rent out a property. The deduction is claimed in the capital income section of the tax return.

Disclaimer

This guide provides general information about Swedish property tax for the 2026 tax year. Tax rates, thresholds, and rules may change. The information presented is based on published Skatteverket data and may not reflect individual circumstances. Always consult with a qualified Swedish tax advisor or Skatteverket directly for advice specific to your property situation. InvestmentKit does not provide tax advice.