Sweden Rental Income Tax Guide 2026 — Uthyrning & Schablonavdrag (SEK 40,000)

Overview — How Rental Income Is Taxed

Rental income from properties in Sweden is taxed at 30% on the net profit after deductions:

👉 Tax Classification: Rental income is classified as capital income (inkomst av kapital), not earned income. This means a flat 30% rate with no social security contributions. Losses can offset other capital gains.

👉 Who Must Report: Anyone who rents out a property in Sweden must report the income, even if the deductions eliminate the tax. The rental income is reported on your annual tax return (Inkomstdeklaration) using the K12 form (Uthyrning av privatbostad).

👉 Key Deductions: The most important deductions are the schablonavdrag (standard deduction), the rent you pay for the space yourself (if applicable), and actual operating costs for secondary properties.

👉 Tax Calculation: Rental Income - Standard Deduction - Other Deductions = Taxable Surplus. Tax = Taxable Surplus × 30%.

Primary Residence Rental — Schablonavdrag SEK 40,000

If you rent out your primary residence (privatbostad), the tax treatment is very favorable:

👉 Standard Deduction (Schablonavdrag): SEK 40,000 per year. This is a flat allowance that applies regardless of the actual rental income. It is designed to cover the deemed personal use value and minor costs.

👉 Additional Deduction: You can also deduct the portion of your own housing costs (hyra/avgift) that corresponds to the rented-out space. For a bostadsrätt (apartment), this is your monthly fee (avgift) to the housing association. For a house, it includes your mortgage interest (but only the interest portion, not amortization) and operating costs, allocated proportionally.

👉 Proportionate Calculation: If you rent out 50% of your home, you deduct 50% of your housing costs. The SEK 40,000 standard deduction is always taken in full (it is a flat allowance, not proportional).

👉 Example Calculation: You rent out a room in your apartment for SEK 10,000/month = SEK 120,000/year. Your monthly housing association fee is SEK 6,000, so 50% (the rented portion) = SEK 3,000/month = SEK 36,000/year. Taxable surplus = SEK 120,000 - SEK 40,000 (schablon) - SEK 36,000 (costs) = SEK 44,000. Tax = SEK 44,000 × 30% = SEK 13,200. Total tax rate on rental income: 11% effective.

Secondary Home / Other Property Rental

Renting out a secondary home (e.g., a summer cottage, investment property, or second apartment) has different rules:

👉 Standard Deduction (Schablonavdrag): SEK 20,000 per year per property (lower than the primary residence deduction). This reflects the fact that secondary properties are not your main home.

👉 Full Cost Deduction: Unlike primary residence where only the proportionate cost is deductible, for secondary properties you can deduct the full operating costs attributable to the rental period. This includes: maintenance and repairs, utilities (electricity, water, heating) if paid by you, property management fees, insurance, and mortgage interest (interest portion only).

👉 Capital Improvements: Major capital improvements (renovations, new roof, new kitchen) are not directly deductible against rental income. Instead, they adjust the cost basis for capital gains when you eventually sell the property.

👉 Vacant Periods: You can deduct costs during periods when the property is available for rent but vacant, if you can demonstrate genuine efforts to find tenants. Costs during personal use periods (when you use the property yourself) are not deductible.

Deductible Expenses in Detail

Understanding which expenses are deductible and which are not is critical:

👉 Deductible: Housing association fees (avgift) for bostadsrätt — the portion for the rented space, mortgage interest (only interest, not amortization — interest is always deductible as capital expense), property tax (fastighetsavgift), maintenance and minor repairs (not capital improvements), utilities if paid by the landlord (electricity, water, heating, internet), management fees, insurance premiums, cleaning between tenants, and advertising/marketing costs for finding tenants.

👉 Not Deductible: Amortization (amortering — paying down the loan principal), capital improvements that increase the property's value (these affect cost basis instead), your own labor (you cannot charge a fee for your time managing the rental), and personal use of the property during the year.

👉 Depreciation: Sweden does not allow depreciation deductions for residential properties against rental income (unlike many other countries). The cost of the building is recovered through the cost basis adjustment on eventual sale.

Short-Term Rentals — Airbnb & Similar

Short-term rentals through platforms like Airbnb have specific considerations:

👉 Same Rules Apply: The same tax rules (schablonavdrag + cost deductions, taxed at 30%) apply to short-term rentals. However, Skatteverket pays closer attention to the distinction between personal use and rental use.

👉 Personal vs Rental Use: If you rent out your primary residence while you are away (e.g., on vacation), the primary residence rules apply with the SEK 40,000 deduction. If your property is primarily used as a short-term rental and rarely used personally, it may be classified as a business property with different tax treatment.

👉 Reporting from Platforms: Airbnb and other platforms report income to Skatteverket. If your reported income does not match the platform data, you will be audited. Always report accurately.

👉 Frequent Rentals: If you rent out a property for more than 16 weeks per year and it is not your primary residence, Skatteverket may reclassify the activity as business income (näringsverksamhet) rather than capital income. This changes the tax treatment — you would file a NE form instead of K12 and pay social security contributions (~29%) in addition to income tax.

Room Renting — Subletting in Your Own Home

Renting out a room in your own home has the same rules as primary residence rental:

👉 SEK 40,000 Deduction: The full standard deduction applies. You can also deduct the proportionate share of your housing costs for the rented room. If the room is 20% of your apartment's floor area, you deduct 20% of your housing costs.

👉 Example: You rent a room for SEK 7,000/month = SEK 84,000/year. Your total housing costs (avgift + interest) are SEK 120,000/year. The room is 25% of the apartment. Deduction = SEK 40,000 (schablon) + SEK 30,000 (25% of SEK 120,000) = SEK 70,000. Taxable surplus = SEK 84,000 - SEK 70,000 = SEK 14,000. Tax = SEK 14,000 × 30% = SEK 4,200. Effective tax rate: 5%.

👉 Rent Control: If you rent a room in a rental apartment (hyresrätt), you generally cannot charge more than approximately 15-20% above your own rent (for the proportionate share plus a reasonable markup for furniture). The hyresnämnd (rent tribunal) can challenge excessive rent.

Professional Rental — Business Classification

If your rental activity is large-scale, it may be treated as a business:

👉 When It Applies: Owning more than 2 rental properties, renting out multiple units in a building, or having rental as your primary business activity. Skatteverket evaluates each case individually.

👉 Business Tax Treatment: If classified as business income (näringsverksamhet), you must register a business (enskild firma or AB), charge VAT on commercial properties (but residential rental is VAT-exempt), file NE form instead of K12, pay social security contributions (egenavgifter ~29%) plus income tax (kommunal + statlig), and maintain full accounting records.

👉 VAT: Residential rental is generally VAT-exempt in Sweden. Commercial property rental may be VAT-able if the landlord opts for VAT registration. This is a specialized area requiring professional advice.

Non-Resident Rental Income

If you own Swedish property but live abroad, special rules apply:

👉 Taxation: Non-residents are taxed on rental income from Swedish real estate. The tax is 30% on net income after deductions. You must file a Swedish tax return (Inkomstdeklaration) to report the rental income.

👉 FASTI Registration: Non-resident property owners must register with Skatteverket through the FASTI system (Fastighetsregister för utländska ägare). This registers you as a non-resident property owner for tax purposes. Contact Skatteverket for the specific forms.

👉 Withholding: If a Swedish tenant pays rent directly to you abroad, you are responsible for declaring and paying the tax. There is no automatic withholding on rental payments to non-residents (unlike dividends or interest). File your return and pay the tax due.

👉 Tax Treaty Protection: Most tax treaties provide that real estate income is taxable in the country where the property is located (Sweden). You may obtain a foreign tax credit in your country of residence for Swedish tax paid on the rental income.

FAQ

How much rental income is tax-free in Sweden?

For primary residence rental, the first SEK 40,000 is tax-free (schablonavdrag). Plus you can deduct the proportionate share of your housing costs. For example, with SEK 40,000 standard deduction and SEK 36,000 in cost deductions, you pay no tax on up to SEK 76,000 of rental income.

What is the schablonavdrag for rental income?

The schablonavdrag (standard deduction) is SEK 40,000 per year for primary residence rental (where you live yourself) and SEK 20,000 per year for secondary homes and other properties. It is a flat allowance that reduces taxable rental income.

How is rental income taxed?

Rental income is taxed as capital income at a flat 30% on the net surplus after deductions (schablonavdrag plus actual costs). The tax is reported on your annual tax return using the K12 form.

Can I deduct mortgage interest against rental income?

Yes, mortgage interest on the property is deductible. Only the interest portion (not amortization) is deductible. For primary residence, deduct the proportionate share of interest for the rented space. For secondary properties, deduct the full interest during the rental period.

Do I need to report Airbnb income?

Yes. All rental income from Airbnb and similar platforms must be reported. Platforms report income to Skatteverket. The same rules apply: SEK 40,000 schablonavdrag for primary residence, deductions for costs, and 30% tax on surplus.

What form do I use to report rental income?

Use the K12 form (Uthyrning av privatbostad) on your tax return. If the activity is classified as business income, use the NE form instead. The K12 form is included in the e-service when you indicate you have rental income.

Is rental income from a summer cottage taxable?

Yes. Renting out a summer cottage (fritidshus) is taxable. The schablonavdrag is SEK 20,000. You can deduct actual operating costs during the rental period. If the rental is occasional and small-scale, it is still reportable but often tax-free after deductions.

What happens if I don't report rental income?

Failure to report rental income is tax evasion. Skatteverket can audit you, impose tax surcharges of up to 40%, and assess back taxes for up to 6 years. With platform data sharing, unreported income is increasingly detected.