Sweden is set to revise its research and development (R&D) tax incentives and expert tax relief rules to simplify administration and expand access. A government report has proposed key changes, expected to take effect on 1 January 2026.

For R&D tax incentives, the proposal removes the requirement for employees to work at least 15 hours per month on R&D and eliminates the need for work to be classified as “qualified.” However, only those directly involved in R&D would still qualify for the 20% employer contribution reduction, capped at SEK 36 million annually. The requirement that R&D work must be “systematic” would also be replaced with a broader condition that it must involve developing new scientific or technical solutions.

The expert tax relief scheme would also see changes. The proposed reforms include increasing tax relief from 25% to 30% of remuneration and setting a lifetime limit of seven years instead of linking it to an individual’s intended stay in Sweden. The competence rule would apply only to employees engaged in R&D, while other key personnel would no longer qualify. Additionally, the requirement that recruitment must be difficult in Sweden would be removed.

Further adjustments include eliminating Swedish citizenship restrictions, extending the non-residency requirement from five to ten years, and extending the application deadline from three to six months. Tax relief would also remain valid even if the employee changes employers.

These changes aim to simplify tax incentives, attract skilled professionals, and strengthen Sweden’s position as a hub for innovation and research.