Business Expenses in Sweden 2026: What You Can Deduct, and What You Can't

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You invoice through an aktiebolag (AB, limited company) or an enskild näringsverksamhet (sole trader business). You want every legitimate cost to cut your tax. Here you will learn what Skatteverket (the Swedish Tax Agency) accepts, what is capped or banned, and the 2026 standard amounts.

Sweden business expenses in 2026: the key figures

All amounts come from Skatteverket's Belopp och procent 2026 page unless another link says otherwise. The price base amount is Sweden's inflation-linked reference figure used for many thresholds.

What changed for 2026

• Food VAT halved. From 1 April 2026, VAT on food fell from 12% to 6%. Restaurant meals stay at 12%, so the SEK 46 flat-rate VAT deduction still applies there. A new SEK 33 flat rate covers food taxed at 6%, per Skatteverket's representation guidance.
• New 3:12 rules for owner-managers. From income year 2026, a basic amount (grundbelopp) of SEK 322,400 replaces the simplification rule. The minimum-salary requirement is gone, per Skatteverket.
• Older sole traders. The age limit rises: in 2026 you must be 67 at the start of the year to pay only the 10.21% pension contribution.

Is this guide for you?

Read on if you…

• run a Swedish AB or sole trader business and handle your own bookkeeping;
• are a freelancer who has become Swedish tax resident and must now declare business income there;
• want to use depreciation and the periodiseringsfond to smooth a strong year.

Probably not your case if you…

• are an employee with no side business (see the personal tax deductions and benefits of Sweden guide);
• run a foreign company with no Swedish office, staff or management.

What business expenses are deductible in Sweden?

The principle sits in 16 kap. 1 § of the inkomstskattelag (1999:1229, Income Tax Act): costs for acquiring and keeping income are deductible. Its mirror is 9 kap. 2 §: "living costs and similar expenses" are not. Skatteverket's deductions page for businesses puts it plainly: every expense your business requires is deductible, private costs never.

There is no closed list. In practice these pass without debate:

• Running costs: premises, software, hosting, telecom for business calls, insurance, bank fees.
• Professional services: accountant, lawyer, subcontracted freelancers.
• Marketing: ads, website, trade fairs.
• Staff: salaries plus employer contributions (arbetsgivaravgifter) of 31.42% in 2026.
• Training: courses with a clear link to the business, under conditions set out by Skatteverket.
• Specialist books and journals linked to your activity.

Travel, mileage and per diem

Flights, trains and hotels on business trips are deductible. Hotel costs count when you travel outside your usual business location and stay overnight.

If you drive your private car for the business, you deduct SEK 25 per mil (10 km) in 2026. For a company car whose fuel the driver pays, it is SEK 12 per mil. Fully electric company cars: SEK 9.50.

On domestic trips with an overnight stay, the 2026 per diem is SEK 300 per full day. A half day is SEK 150, a night allowance SEK 150. Daily commuting between home and your usual workplace is a private cost.

Home office: the sole trader rules

Skatteverket's premises page gives you two routes:

1. A dedicated room. It must be separate and fitted out so it cannot serve as living space. You also need a real business need for it. A room with a desk and shelves does not qualify on its own.
2. The 800-hour standard. Work at home at least 800 hours a year. Then deduct SEK 2,000 a year in a home you own, or SEK 4,000 in a rented or tenant-owned flat. The amount covers heating, water and electricity.

Here's the catch: hours you could have worked at separate business premises do not count. And your sole trader business cannot rent a room from you or your spouse and deduct the rent. These standards are written for sole traders. An AB is a separate taxpayer, so get advice before it pays for space in your home.

Equipment and depreciation

Equipment (inventarier) is depreciated as a pool. Under the main rule, the pool may fall to 70% of its prior value plus purchases. That is roughly 30% declining balance. The complementary rule allows 20% a year straight line on cost (PwC, secondary).

Good news for small kit. Equipment with an economic life of three years or less, and low-value items, are deducted in full when bought. Software costing under half a price base amount, SEK 29,600 in 2026, is also expensed at once, per the Avdragslexikon.

Which costs are restricted or not deductible?

1. Meals at representation. Breakfast, lunch and dinner with clients or staff have a deduction limit of SEK 0 (16 kap. 2 § IL). Simple refreshments are deductible up to SEK 60 per person. Theatre tickets, green fees or hire costs for staff parties go up to SEK 180, all excluding VAT.
2. Gifts. Representation and advertising gifts are deductible at a reasonable amount, capped at SEK 300 excluding VAT. Tax-free staff gifts in 2026: Christmas SEK 600, anniversary SEK 1,800, memorial gift SEK 15,000, all including VAT.
3. Fines and public-law sanction fees are never deductible, and nor are bribes (9 kap. 10 § IL).
4. Private costs: everyday clothing, commuting, your own wellness. Only work clothes unsuitable for private use qualify. A sole trader cannot deduct their own fitness costs.
5. Net interest above the cap. Net interest expense is deductible up to 30% of tax-EBITDA (24 kap. 24 § IL), with a SEK 5 million safe harbour per group.

VAT is a separate track. You still recover VAT on meal costs up to SEK 300 per person and occasion. The meal itself stays non-deductible. The specific taxes in Sweden guide covers VAT rates and registration.

Wellness allowance in an AB

A company can pay staff a tax-free wellness allowance (friskvårdsbidrag) of up to SEK 5,000 a year. All staff must get the same terms (Skatteverket). Pay more and the whole benefit becomes taxable, with employer contributions on top.

How do the periodiseringsfond and expansionsfond reduce tax?

Periodiseringsfond: smoothing a good year

A periodiseringsfond (tax allocation reserve) moves part of this year's profit out of the tax base. In 2026 a company can allocate up to 25% and a sole trader up to 30% of profit (30 kap. 5 § IL). Each allocation must be reversed into taxable income within six years: 2026 allocations by income year 2032 (30 kap. 7 § IL).

Companies also report a notional income on reserves held at the start of the year. It equals the government borrowing rate on 30 November of the prior year, at least 0.50%. For 2026 that is 2.55%. The reserve defers tax; it does not erase it.

Expansionsfond: company-rate tax for sole traders

A sole trader can allocate retained profit to an expansionsfond. The allocation is taxed at 20.6%, the corporate rate, instead of personal rates and egenavgifter. The maximum allocation is the ceiling amount divided by 0.794.

Egenavgifter as a deduction

A sole trader deducts provisional egenavgifter of up to 25% of the base in the year (Skatteverket). The difference with the contributions actually charged is reconciled on the next NE form (NE-bilaga). The 2026 return for 2025 income was due on 4 May 2026 (Skatteverket).

What do founders and cross-border freelancers get wrong?

Paying yourself from an AB. Salary and the 31.42% employer contributions are deductible for the company. Dividends are not. Under the new 3:12 rules, dividends within your threshold are taxed two-thirds as capital income, an effective 20%. The legal forms of business in Sweden guide compares AB and sole trader outcomes.

Running a foreign company from Sweden. If you manage a foreign company from your Stockholm flat, Sweden may tax its profit. Its costs then become deductible here too. The practical guide to obtaining your tax residency in Sweden explains when your move triggers this.

Hiring young staff. For staff born 2003–2007, the employer contribution is 20.81% instead of 31.42% from 1 April 2026 to 30 September 2027. It applies to pay up to SEK 25,000 a month.

Common mistakes (and what they cost)

• Deducting client dinners. Skatteverket adds them back. SEK 50,000 of restaurant bills in an AB means SEK 10,300 of extra corporate tax, plus a possible tax surcharge.
• Paying mileage above SEK 25 per mil. The excess is taxable salary. Paying SEK 35 per mil over 1,000 mil creates SEK 10,000 of salary and SEK 3,142 of employer contributions.
• Wellness allowance over SEK 5,000. The whole amount becomes taxable for the employee, not just the excess, and employer contributions apply.
• Claiming the home office standard without 800 hours. The deduction is refused. Hours you could have worked at your premises do not count.
• Running private costs through the business. The cost is added back and can be taxed on you personally. Repeated cases fall under the tax fraud regulations of Sweden.

Frequently asked questions

Are client meals deductible in Sweden?

No. Breakfast, lunch and dinner at representation have a deduction limit of zero for income tax, for clients and staff alike. Simple refreshments are deductible up to SEK 60 per person. Theatre tickets or green fees go up to SEK 180, excluding VAT. VAT on meals is still recoverable on a base of up to SEK 300 per person and occasion.

What depreciation rates apply to equipment in Sweden?

Equipment (inventarier) is depreciated as one pool. The main rule allows roughly 30% declining balance, as long as the pool keeps at least 70% of its prior value. The complementary rule allows 20% straight line on cost. Short-life equipment (three years or less) and low-value items are deducted in full when bought.

What is a periodiseringsfond and how much can I set aside?

A periodiseringsfond is a tax allocation reserve. In 2026 a company can allocate up to 25% of its profit to it, a sole trader up to 30%. The money stays in the business, but each allocation must be reversed into taxable income within six years (2026 allocations by 2032). Companies also report a notional standard income on reserves, linked to the government borrowing rate.

Can I deduct my home office in Sweden as a freelancer?

As a sole trader, yes in two cases. A room fitted out so it cannot be used as living space gives a deduction for its share of costs. Otherwise, work from home at least 800 hours a year. You then take SEK 2,000 (owned home) or SEK 4,000 (rented or tenant-owned flat) a year.

Is interest fully deductible for a Swedish company?

Not always. Net interest expense is capped at 30% of tax-EBITDA, the profit before interest, tax and depreciation as computed for tax. A safe harbour lets a group deduct up to SEK 5 million of net interest regardless. Disallowed interest can be carried forward for up to six years. Most freelancers and small owner-managed companies never reach the cap.

How much is the tax-free mileage allowance in Sweden in 2026?

For business driving in your own car, the tax-free amount is SEK 25 per mil, a Swedish mil being 10 km. For a company car whose fuel the driver pays, it is SEK 12 per mil. A fully electric company car gets SEK 9.50. Anything paid above these amounts is taxable salary and attracts employer contributions.

Related guides

• Legal forms of business in Sweden: AB vs sole trader
• Specific taxes in Sweden, including VAT
• Personal tax deductions and benefits of Sweden
• Tax fraud regulations of Sweden
• Business expenses in Malta
• Business expenses in Austria
• All country tax guides

Sources

• Belopp och procent 2026 – Skatteverket
• Avdragslexikon för företag – Skatteverket
• Lokalkostnader (premises and home office) – Skatteverket
• Moms och avdrag vid representation – Skatteverket
• Ändrade regler för delägare i fåmansföretag – Skatteverket
• Egenavgifter och särskild löneskatt – Skatteverket
• Inkomstskattelag (1999:1229) – Sveriges riksdag
• Sweden: Corporate deductions – PwC Worldwide Tax Summaries (secondary)

This guide is general information, not personalised tax advice. See how we research and review.