What does it mean?
Rental income is money you receive from renting out your home or part of your home. In Sweden, individuals' rental income is taxed as capital income at 30%. You are entitled to a standard deduction of SEK 40,000 per year plus 20% of the rental income, or alternatively you can deduct actual costs if they are higher.
For property companies and professional landlords, rental income is taxed differently — as business income. It is important to declare all rental income correctly. The Swedish Tax Agency has access to information from housing platforms and can review rental advertisements. Unreported rental income can lead to tax surcharges and in serious cases prosecution for tax evasion.
Key Points
- Individuals taxed at 30% as capital income
- Standard deduction: SEK 40,000 + 20% of rental income per year
- Alternative deduction for actual costs if they exceed the standard amount
- Property companies taxed as business income
- Tax Agency actively monitors — always declare correctly
Practical Tip
Compare the standard deduction with your actual costs — choose whichever gives you lower tax. If you rent out regularly, consider hiring an accountant to optimize your deductions.
Legal Basis: Income Tax Act (Inkomstskattelagen) Ch. 42, §§30–31