Specific taxes in Sweden 2026: VAT, payroll, property and what is not taxed

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

You know Sweden taxes income heavily. What surprises newcomers are the other taxes: on invoices, payroll and property, plus the ones Sweden does not levy at all. After reading, you will know each specific tax a freelancer, remote worker or founder meets in 2026, who pays it and where the legal savings are.

Sweden specific taxes in 2026: the key figures

What changed for 2026

• Food VAT fell to 6% on 1 April 2026. Restaurant and catering services stay at 12%, per Skatteverket's VAT rate guide. PwC reports the cut as temporary until 31 December 2027 (secondary).
• Cheaper young staff. Employer contributions are 20.81% on pay up to SEK 25,000 for people born 2003–2007, from 1 April 2026 to 30 September 2027.
• The property charge cap is SEK 10,425 for income year 2026, per Skatteverket's 2026 amounts.

Is this guide for you?

Read on if you…

• invoice from Sweden and need to know when to charge 25%, 12%, 6% or no VAT;
• employ people in Sweden, or pay yourself through an AB, and want the true payroll cost;
• are buying a home in Sweden, or want to know whether wealth and inheritance taxes exist.

Probably not your case if you…

• only want the income tax picture. Start with how to obtain tax residency in Sweden;
• are asking about tax on shares or crypto. See capital gains tax in Sweden.

How does Swedish VAT work for freelancers and companies?

VAT (moms) is the tax you meet first when you start invoicing. The law is the Mervärdesskattelag (2023:200), the VAT Act.

Rates. 25% applies to almost all goods and services, including consulting and software. 12% covers hotel stays and restaurant and catering services. 6% covers food (since 1 April 2026), books, newspapers and passenger transport. A café charges 6% on a loaf you take home and 12% on a coffee served at your table.

Small business exemption. Businesses with annual turnover up to SEK 120,000 can be exempt from VAT. The threshold rose from SEK 80,000 on 1 January 2025 (PwC, secondary). You can still register voluntarily. Most B2B freelancers do, because it lets them reclaim VAT on equipment.

Cross-border services. Selling consulting, design or software to a business in another EU country? You invoice without Swedish VAT under the reverse charge rule and quote the client's VAT number. You also file an EC sales list (periodisk sammanställning); a late one costs SEK 1,250. Services to businesses outside the EU generally fall outside Swedish VAT. Digital services to EU consumers are taxed at the consumer's rate through the One Stop Shop (OSS).

Filing and penalties. VAT is reported in the tax return (skattedeklaration). A late one costs SEK 625, in some cases SEK 1,250. Incorrect information can trigger a 20% tax surcharge on VAT and other non-income taxes.

What do employers and the self-employed pay on top of salary?

Sweden funds pensions, sick pay and parental leave mostly through payroll.

• Employer contributions are 31.42% on gross pay for staff born 1959–2002, with no cap. On a SEK 50,000 monthly salary, the employer adds SEK 15,710. For staff born 1938–1958, only the 10.21% old-age pension fee applies.
• Self-employment contributions are 28.97% of business income for sole traders and active partners born 1959 or later. When you calculate them, you take a standard deduction of 25%. With full old-age pension, the rate drops to 10.21%.
• Special payroll tax on pensions (särskild löneskatt) of 24.26% applies to employer pension costs.
• Employee pension fee. You pay 7% of earned income up to SEK 673,038 as a general pension fee, normally offset by a tax credit.

For a remote employee moving to Sweden, employer contributions are often the biggest hidden cost. A foreign employer may still owe them unless EU coordination or a social security agreement keeps you in another country's system. Compare the options in legal forms of business in Sweden.

What taxes apply to property and housing?

Municipal property charge. House owners pay 0.75% of the tax-assessed value, but never more than SEK 10,425 for 2026. New houses and owner-occupied flats built in 2012 or later pay no charge for the first 15 years. Pensioners' charges can be limited to 4% of income.

Stamp duty on purchase. When you register title (lagfart), you pay 1.5% of the property's value under 8 § of the Stamp Duty Act. The value is the higher of the purchase price and the tax-assessed value. Most legal entities pay 4.25%. A new mortgage deed (inteckning) costs 2% of the amount registered.

Buying a cooperative flat (bostadsrätt) is different. You buy a membership right, not real estate, so these registration duties do not apply in the same way.

Selling your home. Only 22/30 of the gain is taxed, an effective 22%. You can defer tax on up to SEK 3,000,000 if you buy a replacement home. Details in capital gains tax in Sweden.

Business premises. Commercial property carries a state property tax of 1% of assessed value, 0.5% for industrial property (PwC, secondary).

Which other taxes and fees will you notice?

The church fee appears separately on your final tax statement.

Which taxes does Sweden not have?

This is where Sweden surprises people from France, Spain or the United States.

• No wealth tax since 1 January 2007.
• No inheritance, estate or gift tax. Heirs receive assets free of Swedish transfer tax. They generally take over the original cost basis, which matters when they later sell.
• No withholding tax on interest paid to non-residents.

For founders and families, the lack of wealth and inheritance tax is often the strongest financial argument for Swedish residence. The trade-off is high tax on work, funded largely through payroll.

What do non-residents pay on Swedish-source income?

• SINK. A 22.5% final tax on Swedish salary and pensions, with no deductions; 15% on seafarers' income.
• Dividend withholding (kupongskatt). 30% on Swedish dividends to non-residents under 5 § of the Coupon Tax Act. Most treaties reduce it, often to zero for qualifying EU parent companies (PwC, secondary).
• Royalties. 20.6% for recipients without a treaty, often 0% under treaties (PwC, secondary).
• Property. Rental income and gains on Swedish real estate stay taxable in Sweden after you leave.

When these rules start to apply to you is covered in how to end your Swedish tax residency.

Common mistakes (and what they cost)

• Charging Swedish VAT to EU business clients. The client cannot easily reclaim it. You must still file the EC sales list, and a late one costs SEK 1,250.
• Forgetting employer contributions in salary talks. A SEK 60,000 monthly salary costs an employer SEK 78,852 with the 31.42% rate.
• Buying a house through a company. Stamp duty rises from 1.5% to 4.25%. On a SEK 5,000,000 property you pay SEK 212,500 instead of SEK 75,000.
• Ignoring the assessed value. Stamp duty uses the higher of price and assessed value, so a cheap family transfer can still cost full duty.
• Treating no inheritance tax as no tax ever. Heirs generally keep the original cost basis. Capital gains tax then hits the full historic gain on sale, and an undeclared sale triggers surcharges: see tax fraud regulations of Sweden.

Frequently asked questions

What is the VAT rate in Sweden in 2026?

The standard rate is 25%. Hotels and restaurant meals are taxed at 12%. Food, books, newspapers and passenger transport are taxed at 6%; food moved from 12% to 6% on 1 April 2026. Small businesses with turnover up to SEK 120,000 can be exempt from VAT but may register voluntarily.

Does Sweden have a wealth tax or inheritance tax?

No. Sweden has had no wealth tax since 1 January 2007, and there is no inheritance, estate or gift tax. Assets pass to heirs without Swedish transfer tax. However, heirs generally take over the original cost basis, so capital gains tax is due on the full historic gain when they sell.

How much are employer contributions in Sweden in 2026?

31.42% on top of gross salary for employees born 1959–2002, with no ceiling. Staff born 1938–1958 cost 10.21%. From 1 April 2026 to 30 September 2027, staff born 2003–2007 cost 20.81% on pay up to SEK 25,000. Sole traders pay their own contributions of 28.97%.

What is the property tax on a house in Sweden?

Owners pay a municipal property charge of 0.75% of the tax-assessed value, capped at SEK 10,425 for 2026. Homes built in 2012 or later are exempt for the first 15 years. When you buy, you pay 1.5% stamp duty on the higher of price and assessed value, plus 2% on any new mortgage deed.

Do I charge Swedish VAT on services to clients abroad?

Usually not. Services to businesses in other EU countries are invoiced without Swedish VAT under the reverse charge, and you report them in the EC sales list. Services to businesses outside the EU generally fall outside Swedish VAT. Digital services to EU consumers follow the customer's country rate through the One Stop Shop.

Which Swedish taxes do non-residents pay?

Non-residents pay 22.5% SINK on Swedish salary and pensions, with no deductions. Swedish dividends carry 30% kupongskatt, often reduced by treaty. There is no withholding tax on interest. Rental income and gains on Swedish property remain taxable in Sweden under ordinary rules.

Related guides

• Capital gains tax in Sweden
• Legal forms of business in Sweden
• Business expenses in Sweden
• Personal tax deductions and benefits in Sweden
• Specific taxes in Austria
• Specific taxes applicable in Malta
• All country tax guides

Sources

• Belopp och procent, inkomstår 2026 – Skatteverket
• Momssats på varor och tjänster – Skatteverket
• Lag (1984:404) om stämpelskatt vid inskrivningsmyndigheter – Sveriges riksdag
• Kupongskattelag (1970:624) – Sveriges riksdag
• Sweden: Other taxes (individual) – PwC Worldwide Tax Summaries (secondary)
• Sweden: Other taxes (corporate) – PwC Worldwide Tax Summaries (secondary)
• Sweden: Withholding taxes – PwC Worldwide Tax Summaries (secondary)

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