Background & Purpose

The Swedish economy is experiencing an economic downturn, which has led to a slowdown in the construction sector and a need to stimulate employment.

Proposals & Debate

The government proposed a temporary increase to the rot deduction cap and the introduction of separate caps for rot and rut deductions during 2024. Parliament reviewed and voted on this proposal to provide a temporary boost to construction workers.

The Decision

A majority in the Swedish parliament voted in favor of the government's proposal to temporarily raise the rot deduction cap.

Does this affect you?

  • Homeowners in Sweden: Can claim a higher tax deduction for renovation and repair work performed on their homes during 2024.
  • Construction companies in Sweden: Benefit from increased demand for renovation services as households get a stronger financial incentive to hire labor.

In Practice

  • The tax deduction cap for home renovations (rot) is temporarily raised to 75 000 kronor for the year 2024.
  • Separate caps are introduced for rot and rut deductions instead of sharing a single combined limit.
  • The new rules apply to work paid for, provided, or reported during the 2024 tax year.
  • The temporary rules expire at the end of the year.