Background & Purpose

The construction industry in Sweden has faced a challenging economic climate, leading the government to propose temporary economic stimulus measures.

Proposals & Debate

The government proposed raising the state subsidy for home renovation services, known as the rot-deduction, to help stimulate demand and support construction companies through tough economic times.

The Decision

A majority in the Swedish parliament voted in favor of the government's proposal to increase the rot-deduction to 50 percent for a limited time.

Does this affect you?

  • Homeowners in Sweden: Can deduct 50 percent of labor costs for eligible home renovation services during the temporary period.
  • Construction and renovation companies: Benefit from increased demand and higher customer willingness to hire contractors for home projects.

In Practice

  • The tax deduction for home repairs and renovations increases from 30 percent to 50 percent of the labor cost.
  • The temporary higher deduction applies to work performed between May 12, 2025, and December 31, 2025.
  • Homeowners can claim a larger reduction on their taxes when hiring companies for maintenance, conversion, or extension work.