What does it mean?
The ROT deduction (Renovation, Remodeling, Extension) is a tax reduction that gives you 30% of labor costs back when renovating your home. The maximum is SEK 50,000 per person per year, meaning you can have labor costs of roughly SEK 166,000 per year. The ROT deduction is subtracted directly from the invoice — you only pay 70% of the labor cost.
To qualify, the work must be performed by a Swedish company with an F-tax certificate, and it must concern your permanent home or vacation property. Material costs are not included — only labor. ROT covers work like bathroom renovation, kitchen installation, facade work, electrical work, and plumbing. However, routine maintenance like wallpapering and painting generally does not qualify.
Key Points
- 30% tax reduction on labor costs for renovation work
- Max SEK 50,000 per person per year — deducted directly from invoice
- Applies to permanent and vacation homes — not rental apartments
- Company must have F-tax certificate — material costs not included
- Wallpapering and simple painting generally do not qualify as ROT
Practical Tip
Always ask for a breakdown of material and labor costs on the quote — only labor costs qualify for the ROT deduction. Check that the contractor has an F-tax certificate on the Tax Agency's website before hiring them.
Legal Basis: Income Tax Act (Inkomstskattelagen) Ch. 67, §§13a–13c