Sweden’s government has approved a proposal (2024/25:156) on 10 April 2025 to temporarily raise the ROT deduction subsidy rate for the construction sector from 30% to 50%.
The ROT deduction, introduced in 2008, provides tax breaks for home repairs, renovations, and extensions to reduce undeclared work and boost employment. The government aims to stimulate demand and job creation in response to the downturn affecting the sector since 2023.
The proposal entails changes to the Income Tax Act (1999:1229), the Act (2009:194) on the Procedure for Tax Reduction for Household Work, and the Tax Procedure Act (2011:1244).
The changes are set to take effect on 12 May 2025 and will remain in place until the end of December 2025.
