Sweden’s parliament has approved changes to the tonnage tax regime that broaden eligibility to specialised shipping activities, ease chartering rules and revise vessel qualification requirements as part of efforts to strengthen the competitiveness of the shipping sector and align the regime with EU state aid rules.
Sweden’s parliament (Riksdag) has approved legislation on 11 June 2026, introducing a series of changes to the country’s tonnage tax regime, expanding its scope and providing greater operational flexibility for shipping companies.
The amendments, contained in Bill Prop. 2025/26:243, were backed by the Swedish Tax Committee and are intended to improve the competitiveness of the Swedish shipping industry while bringing the regime more closely into line with the European Commission’s state aid guidelines for maritime transport.
A key change is the expansion of the tonnage tax regime to cover a broader range of specialised shipping activities. Eligible operations will include surveillance of offshore installations, icebreaking, maritime search and rescue, salvage operations, fuel bunkering, cable and pipeline laying, and environmental rescue and remediation work.
The regime will also extend to towing and transport of dredged material, provided that at least 50% of a vessel’s annual operating time is devoted to transport activities. In addition, construction, repair, servicing and dismantling of offshore wind turbines, oil platforms and similar installations will qualify, along with marine and seabed exploration linked to offshore construction projects. Support services such as the provision of crew accommodation and workshop capacity for these activities will also be covered.
For vessels engaged in specialised shipping, the minimum gross tonnage threshold will be reduced from 100 to 20.
The legislation also increases flexibility for bareboat chartering. Companies participating in the tonnage tax regime will be permitted to charter out qualified vessels without crew for up to 50% of their total gross tonnage while remaining eligible for the regime.
Another significant amendment replaces the requirement that vessels be “primarily used in international traffic”. Instead, ships must operate in markets exposed to international competition. The change recognises that domestic and specialised maritime services may face competition from international operators.
The bill further introduces more favourable conditions for the use of excess depreciation funds (Överavskrivningsfond). Under the revised rules, companies may defer the reversal of deductions provided their net tonnage has not decreased, replacing the previous requirement to demonstrate an increase in net tonnage.
In addition, vessels under construction that are covered by delivery contracts may, under certain conditions, be treated as owned qualified vessels. The measure is designed to prevent adverse tax consequences during fleet renewal.
In line with EU requirements, companies classified as being in financial difficulty will no longer be eligible for tonnage taxation. The legislation also adjusts the rules governing blocking periods for companies seeking to re-enter the regime after leaving it, ensuring consistent treatment regardless of whether the exit was voluntary or resulted from non-compliance.
The European Commission has approved the updated tonnage tax regime as state aid for the period from 2027 to 2036.
While the legislation was approved by parliament, a minority comprising the Social Democrats, Left Party, Centre Party and Green Party argued for unlimited intra-group bareboat chartering, citing similar arrangements in other EU jurisdictions. The government maintained that further legal analysis is needed before such a change can be introduced.
The amendments will enter into force starting tomorrow, 20 July 2026, and will apply for the first time to tax years beginning after 31 December 2026.
