What does it mean?
The interest deduction means you can deduct 30% of your interest costs from your taxes, reducing the actual cost of your mortgage. The deduction applies to interest costs up to SEK 100,000 per person per year. For interest costs exceeding SEK 100,000, the deduction is 21%.
The interest deduction has a significant impact on housing costs — with a 4% interest rate on a SEK 2 million loan, the annual interest cost is SEK 80,000, of which you get back SEK 24,000 through the tax reduction. The deduction is applied automatically in your tax return if you have reported loans with Swedish banks. For loans with foreign banks, you must declare manually.
Key Points
- 30% deduction on interest costs up to SEK 100,000 per person per year
- 21% deduction on interest costs exceeding SEK 100,000
- Significantly reduces actual housing costs
- Applied automatically in tax returns for loans with Swedish banks
- Applies to all loan types — mortgage, student loans, car loans
Practical Tip
Check that your interest costs are correctly filled in your tax return — banks usually report automatically, but errors can occur. The deduction applies per person, so if there are two borrowers, each gets the SEK 100,000 threshold.
Legal Basis: Income Tax Act (Inkomstskattelagen) Ch. 67, §15