The Swedish Government presented the Budget Bill for 2025 on Thursday 19 September 2024. According to the Government, the budget focuses on strengthening the purchasing power of households, ensuring that more people get into work and implementing reforms to increase growth.
The key tax measures are
1. Reduced tax for wage earners
Tax on earned income is reduced by strengthening the regular job tax credit. The job tax deduction will increase for people with earned income exceeding approximately SEK 190 500 per year (January 1, 2025)
2. Reduces tax for pensioners
The tax on pension will be reduced tax corresponding to the increased job tax deduction (January 1, 2025)
3. Reduction of taxes for high-income earners
The highest average marginal tax rate will be reduced from 55 to 52 per cent by abolishing the de-escalation of the reduction of job tax credit for high-income earners (with income above approx. SEK 65,000 per month) (January 1, 2025)
4. Higher threshold for state income tax
For 2025 the threshold will be SEK 625 700 per year (January 1, 2025)
5. Deduction for travels to and from work
The threshold for deductions for travels between work and home will be raised from SEK 11 000 to SEK 13 000 (January 1, 2026)
6. Reduced reimbursement rate for expert tax
To qualify for expert tax the level of compensation will be reduced to 1.5 times the price base amount (SEK 58 800 for 2025). This would mean, for 2025, a monthly salary of at least SEK 88.200 (January 1, 2025).
7. Reduced tax on savings
A tax-free basic level for savings in investment saving account (ISK), in endowment insurance and in so-called PEPP products, amounting to SEK 150,000 in 2025 and increasing to SEK 300,000 in 2026 (January 1, 2025)
8. Abolishing of deduction of interest costs on unsecured loans
Possibility to deduct interest costs on loans without securities in for example houses, vehicles or securities, will be phased out over a period of two years. This means that for the 2025, deductions should be made at a rate of 50 per cent of interest expenses on such loans. (January 1, 2025)
9. The new treaty for the Öresund region
The new treaty will be presented to Riksdagen in order for the treaty to enter into force on 1 January 2025. This aims to make it easier to work part of working hours in the country of residence without affecting taxation.
According to the Government’s calculations, the reinforcement of the job tax credit, the abolition of the reduction of the job tax credit on higher incomes, is expected to increase the number of people in employment.
The lower marginal tax rates is to benefit higher earners aiming to increase productivity and motivate people to educate themselves for more qualified roles.
As a result of the tax cuts, Sweden will have the lowest tax burden since 1980.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Alice Moon
Director
Magnus Westman
Director
Simply follow our Vialto Alerts page on LinkedIn and posts will be displayed on your feed. To ensure you don’t miss one, once you’re on our LinkedIn page, click on the bell icon under the banner image to manage your notifications.
Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
© 2025 Vialto Partners. All rights reserved.