Tax on villa rental income 2026 – how much tax you pay
Rental income from a villa is taxed as capital income at 30 percent, but you first get to deduct a standard deduction of SEK 40,000 per dwelling and year. This means you only pay tax on the part of the rent that exceeds SEK 40,000, and that tax is 30 percent of the surplus. This rule determines how much of the rental income you actually get to keep.
The standard deduction is found in the Income Tax Act (inkomstskattelagen, 42 kap. 30 §) and applies to each dwelling you let out, whether it is a villa, a holiday home or a tenant-owned flat (bostadsrätt). The deduction is a flat amount intended to cover your costs for the letting, such as wear and tear, insurance and administration. You cannot deduct actual costs beyond the standard amount, but you can also deduct the part of the fee or rent that you yourself pay for the let-out portion, for example if you let out part of the villa.
To calculate your tax, start by adding up all rental income during the year. Then deduct the standard deduction of SEK 40,000. If you have costs for electricity, heating or water that the tenant pays separately, these should not be counted as rent but as compensation for utilities – they are not taxed as rental income. If, on the other hand, you charge a higher price to cover your own costs, the entire amount counts as rent.
Example: You let out your villa for SEK 12,000 per month, giving SEK 144,000 per year. After the standard deduction of SEK 40,000, the surplus is SEK 104,000. The tax is 30 percent of that, i.e. SEK 31,200. You get to keep SEK 112,800 of the rental income. If instead you let out for SEK 30,000 per year, the surplus is zero and you pay no tax at all.
Tax on villa rental income 2026 – what applies for different letting forms?
The rules for tax on villa rental income 2026 differ depending on whether you let out the whole villa or only part of it. If you let out the whole villa, for example when moving abroad, the same standard deduction of SEK 40,000 applies. If you let out part of the villa, for example a room or a flat in the basement, you can also deduct the portion of your own housing costs that corresponds to the let-out area.
To calculate the deduction for the let-out part, you need to know what share of the villa's total area is let out. If you let out 30 percent of the villa, you can deduct 30 percent of your actual costs for interest, running costs and maintenance. This deduction is made in addition to the standard deduction, but it must not exceed the rental income. The Swedish Tax Agency (Skatteverket) has published guidance explaining the calculation in detail.
If you let out through a letting agency, for example a platform for private letting, you are still the landlord and must declare the income. The agency does not withhold tax for you; you are responsible for reporting the rent in your income tax return. You can, however, deduct the agency's fee as a cost, but only if you do not use the standard deduction – the two deductions cannot be combined.
How to declare rental income from your villa
You declare the rental income in your income tax return under capital income. On the Swedish Tax Agency's form K10 (for private individuals) or in the digital declaration, you fill in the rental income and make the deductions. If you have several dwellings that you let out, you must fill in each dwelling separately. The standard deduction applies per dwelling, so if you let out both your villa and your holiday home, you get two deductions of SEK 40,000.
It is important that you declare even if the rental income is below SEK 40,000, because the Swedish Tax Agency may request information about the letting. If you do not declare, you may have to pay a tax surcharge. You can declare digitally via the Swedish Tax Agency's e-service, and you can also call the Swedish Tax Agency for help with the calculation.
Common questions
Do I have to pay tax if I let out my villa for less than SEK 40,000 per year? No, if the rental income is below SEK 40,000, the surplus is zero and you pay no tax. You still have to declare the income, but you will not have any tax amount to pay.
Can I deduct actual costs instead of the standard deduction? Yes, you can choose to deduct actual costs instead of the standard deduction, but it is rarely advantageous. The standard deduction of SEK 40,000 is usually higher than the actual costs you can substantiate. If you have exceptionally high costs, for example for repairs, it may be worth calculating both options.
How does the Private Housing Rental Act (privatuthyrningslagen) 2026:772 affect my tax? The Private Housing Rental Act (privatuthyrningslagen, 2026:772) regulates the rental agreement, not the tax. The Act applies to letting of houses or parts of houses and contains provisions on the size of the rent and the form of the agreement. The tax on rental income is determined by the Income Tax Act, not by the Private Housing Rental Act. You can read more about how the Act affects the rent in our guide on privatuthyrningslagen 2026:772.
What happens if I let out through a company? If you let out through a limited company or a sole trader business, the income is taxed as business income, not as capital. Then other rules apply, such as social security contributions and corporate tax. For most private individuals, it is simpler to let out privately and use the standard deduction.
Common pitfalls and how to avoid them
A common misconception is that you can deduct all costs, for example for new furniture or renovations. That is not the case – the standard deduction is intended to cover such costs. If you deduct actual costs, you must be able to substantiate them with receipts and calculate them proportionally to the let-out area.
Another pitfall is not taking into account that the rent may be too high under the Private Housing Rental Act. If you charge a rent that exceeds the legal level, the tenant can demand repayment, which reduces your income. The Act (2026:772) states that the rent must be reasonable, and for a villa this means that the rent must not be significantly higher than what is normal for comparable dwellings. You can read more in our guide on how the rent is calculated when letting out a villa.
How to maximise your net profit from letting
To maximise your net profit, you should first ensure that the rent is at a market level, but not above the legal limit. You can also consider letting out through a letting agency that handles the administration, but remember that the fee reduces your surplus. Another way to increase profit is to let out furnished, but then you must charge a higher rent to cover the wear and tear – and you cannot deduct the furniture.
If you plan to let out an annex dwelling (attefallshus) or a detached garage, the same tax rules apply as for the villa. You can read more in our guide on letting out an annex dwelling.
Summary
Tax on villa rental income 2026 means you pay 30 percent on the surplus after a standard deduction of SEK 40,000. You can also deduct the let-out part's share of your own costs. Always declare the income, even if it is below the deduction. To avoid problems with the tenant, make sure the rent follows the Private Housing Rental Act and that you have a written agreement. Feel free to read our guide to letting out a house 2026 for a complete overview.
This is general information and not legal advice. For your specific situation, contact the Swedish Tax Agency or a legal expert.
