Sweden does not yet have a national short-term rental association online at the time of compilation of this resource, but you may consider joining the European Holiday Home Association on LinkedIn.
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Sweden does not yet have a national short-term rental association online at the time of compilation of this resource, but you may consider joining the European Holiday Home Association on LinkedIn.
In Sweden, short-term rental is described as furnished apartments that come with a range of additional goods or services such as wifi, regular cleaning, etc., and are commonly presented to professionals (e.g., temporary workers) and tourists for a short-term period, which spans for weeks and months for payment.
The payment made by guests covers utilities and local taxes. However, there may be strict conditions, such as no pets or smoking inside the premises.
It is popularly referred to as Holiday rental and Airbnb in Sweden.
Two countrywide laws in Sweden affect short-term rental. The first one is the need to obtain permission to rent either from your landlord if you live in a rented apartment (hyresrätt) or the governing body of your building or Home Owners Association ("Bostadsrättsförening") for property owners. If your application to one of them is turned down, you can request authorization from the Rental Tribunal. But if it's a single dwelling, you don't need permission to rent out the whole unit.
If you have compelling reasons (beaktansvärda skäl) to sublet your residences, such as advanced age, illness, temporary employment in another location, unique family circumstances, or equivalent situations, you can apply for approval from the Regional Rent Tribunal (Hyresnämnden).
The second law is the rent control law, Although rent is determined by the design of your property, how beautiful it is, as well as the property’s location, size, and quality. However, you are not permitted to charge your guests anything you choose.
If your house is a "hyresrätt," you can sublet it for the same amount of money that you pay in rent plus an extra 10% to 15% because it is furnished. You are committing a crime and could face charges if your rent is higher than the allowed range.
For privately owned property (bostadsrätter) and single-family homes, rent can cover both running and capital expenses. The cooperative housing association’s monthly dues, utilities like power, water, and wifi, as well as maintenance and repair charges like plumbing, painting, and other costs, can all be considered operating expenses. A capital expense of up to 4% of the home's market value is also permitted
NOTE: You are in jeopardy of paying a fine or a maximum two-year prison sentence if you sublet without permission and charge above the permitted rent range.
Outlined below are your tax obligations from your short-term rental income.
**Income Tax**
In Sweden, the first SEK 40,000 of your annual rental income per property is tax-free. This applies to both your primary residence and any vacation homes you may own. If you begin renting out part way through the year, this exemption is adjusted accordingly. For example, starting in July grants you a SEK 20,000 exemption for that year. Any income above this threshold is taxed at a rate of 1.25%. You can also deduct expenses like maintenance, homeowner association fees, and energy costs, though mortgage payments are not deductible.
Remember to declare this income on form Uthyrning m.m. from the Swedish Tax Authority (Skatteverket). The deadline for submitting your income tax return is May 2nd of the year following the income year.
**VAT**
As a host, you're exempt from collecting VAT on rental income up to SEK 50,000 annually, provided you don't offer additional services like breakfast. If your income surpasses SEK 30,000, you'll need to register for VAT. The threshold doubles for properties owned jointly, allowing for a SEK 100,000 exemption. Above these limits, or if you rent out your space for longer than four months or provide additional services, you must register for VAT and charge an extra 12% of your rental income.
Annual VAT filing and payment are required for incomes under one million SEK, with deadlines based on the VAT period. However, non-resident owners must register for Swedish VAT and no registration threshold applies to them.
**Property Tax**
Owners pay a property tax of 0.75% of the property's assessed value, capped at 8,524 SEK. Apartments are exempt from this tax, but local municipal taxes may apply. For specific details tailored to your property, consider consulting with tax experts or subscribing to the Lodge Compliance.
For more information or assistance, reach out to the Swedish Tax Authority (Skatteverket) at Solna Strandväg 26, 171 94 Solna, Sweden, call +46 771 567 567, or visit [their website](https://skatteverket.se/).
In Sweden, you don't need a national permit or license to start a short-term rental, but you might need other types of licenses related to safety and planning, like fire safety and electricity, from your local government. Plus, if your property is part of a building with multiple owners, you'll need to check with them too.
You also need to make sure you're set up for taxes with the government.
To make sure you have all the right registrations and understand what's required for your specific rental property and location in Sweden, it's a good idea to subscribe to the lodge compliance package to help you get all the details sorted out.
Sweden does not yet have a national short-term rental association online at the time of compilation of this resource, but you may consider joining the European Holiday Home Association on LinkedIn.
Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.
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