Sweden

Employment expenses

In principle, all expenses incurred during the fulfilment of the employment agreement are deductible (e.g. travel expenses, automobile expenses, living allowances on business trips, necessary literature, tools of the trade). The deduction related to cost-of-living allowances is, however, limited.

Expenses for travel between home and place of work are deductible based on the cheapest means of public transport or, if a private car or a company car is used, on a fixed amount per kilometre. Only the part of the cost exceeding SEK 11,000 is deductible. The employee must fulfil certain criteria for the deduction (e.g. save at least two hours per day by using a private car instead of public transportation).

Expenses incurred due to double accommodation and home travel during temporary assignments away from one’s ordinary place of work may be deductible for a period of two years for single individuals and up to five years for married individuals (applicable to Swedish accommodation and home travel within the EU/EEA only). Home travel may be deducted separately for an even longer time.

Mandatory home country employee social security charges are deductible (for EU/EEA only).

Personal deductions

Interest expenses

Interest costs paid to Swedish or non-Swedish lenders are deductible.

Management costs

Management costs for the administration of investments are no longer deductible as from 1 January 2016.

Pension insurance premiums and contributions

Personal pension insurance premiums and contributions to restricted pension savings accounts are deductible within certain limits, but only if the employee is not included in an employer funded company pension plan.

Personal allowances

From the aggregate taxable income, a basic allowance of SEK 15,400 to SEK 40,500 (2023) is granted. 

Losses

Losses from the sale of private real property, securities, etc. are generally only 50% or 70% deductible. A tax credit may be applicable in certain instances (see the Other tax credits and incentives section).