Interest Deduction

Interest Deduction - Sweden

International Loans can also be deducted in Sweden Taxes.

Until Year 2024, Any international loan can get 30% deduction upto 100 000 Kr interest repaid and 21% above 100 000 Kr. 

From Year 2025, Only Loans with backup of asset like Home , car, Boat can get 30% tax deduction, other loans like personal loan, short term loan to buy stuff or for vacation can get 50% of interest repaid as deduction and from 2026 interest deduction is abolished. 

Conditions for Eligibility : 

  1. The Loan shall be on your name (Join loan are also accepted)
  2. The installment paid for the loan shall be from your bank account. 
  3. You should have been tax resident in Sweden on that year and paid taxes to Sweden. 
  4. Home loans interest shall be deducted only when as per Tax treaty between Sweden and your home country that the income from rental from that home are also taxable in Sweden. 
Note: Sweden Follows January to December as Financial year, the data for interest repaid shall be show clearly how much interest has been repaid every month for ease of calculation purpose. 
 
 
 
Tax
Annamalai Ramanathan | Financial Educator

I create awareness on personal finance topics to European Indian NRI and Swedish expats by empowering them to have control over their finances and a fulfilling life with happier relationship with money

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