The Swedish government presented its 2025 Budget Bill on 19 September 2024. This year, the government aims to shift its economic policy focus from fighting inflation to investing in long-term growth and security for a more prosperous and safer Sweden.
The government’s Budget Bill for 2025 includes reforms totaling SEK 60 million, excluding military support to Ukraine.
The 2025 Budget bill has several tax measures scheduled to take effect from 1 January 2025.
Budget Bill 2025 proposals
- Savings in an individual investment savings account be exempt from yield tax for amounts up to SEK 150,000 in 2025 and SEK 300,000 in 2026;
- Reducing the subsidy rate for tax deductions on solar cell installations from 20% to 15%, effective 1 July 2025;
- Eliminating the tax deduction for micro-production of renewable electricity, effective 1 January 2026;
- Restricting the right to deduct interest expenses, such as gradually eliminating interest deductions for unsecured loans over two years. This means in 2025, taxpayers may deduct 50% of interest expenses on loans that don’t meet the new requirements;
- Allowing interest deductions on loans secured by residential property, securities, boats, ships, aircraft, vehicles, and pawnshop loans;
- Allowing interest deductions on loans if used to finance the construction or renovation of a building to secure the loan against the completed building as a residential property;
- Repealing stamp duty on mortgage loans for ships, effective from 1 July 2025;
- Raising the property tax on wind turbines from 0.2% to 0.5% of the assessed value, effective 1 January 2026;
- Enhancing tax conditions for sole proprietors. The proposed changes will simplify tax rules for sole traders by raising the annual accounts threshold from SEK 5,000 to SEK 14,325 for 2024;
- Reducing petrol and diesel tax and continuing the reduction of the tax on diesel utilised in forestry, agriculture, and aquaculture;
- Implementing a basic deduction in the “risk tax for credit institutions” legislation while increasing the effective tax rate;
- Eliminating the aviation tax, effective 1 July 2025;
- Reducing the alcohol tax on beer produced by independent small breweries, effective 1 July 2025.
