Deductions for interest expenses

Interest expenses for which you can claim a deduction

You are entitled to claim a deduction provided that the following requirements are met:

• you are personally liable for loan repayment
• the interest is paid during the income year
• the interest expense is of a type that qualifies for a deduction

From income year 2025, new regulations apply to loans that do not meet the security requirements. Under these regulations, you can only claim a deduction for up to 50% of the interest expenses on loans that do not meet certain security requirements. You can still claim a deduction for the full amount of interest expenses on loans that meet the security requirements.

If the Swedish Tax Agency has received a statement of earnings and deductions – from a bank or credit institution, for example – the amount in question will be prefilled in your income tax return (in box 8.1 for interest expenses on secured loans, or box 8.8 for interest expenses on unsecured loans).

Loans that do not meet the security requirements

Loans that meet the security requirements

Interest expenses that are not included in your tax return

If you are entitled to claim a deduction for interest expenses that are not prefilled in your income tax return, you report these expenses in either box 8.1 (for interest expenses on secured loans) or box 8.8 (for interest expenses on unsecured loans).

Note that you must enter the full interest expense amount, regardless of whether the loan in question is secured or unsecured. Provide details of the lender under “Additional information” (“Övriga upplysningar”). If the lender is a private individual, you must also provide their personal identity number.

Interest expenses for which you are not entitled to claim a deduction

You cannot claim a deduction for interest on:

• a loan where interest has been added to the debt amount instead of being repaid
• a student loan from the Swedish Board of Student Finance (CSN)
• maintenance allowance debt
• tax arrears
• a loan provided by a limited company to a shareholder or member of their family
• a loan on an asset abroad – if the asset generates income that is not subject to taxation in Sweden due to a tax convention

You cannot claim a deduction for late-payment interest that has not been calculated on the basis of the debt amount and how late the payment is.

Late-payment interest

If you have not paid a debt on time, you may be charged late-payment interest. This is the case if you have paid loan interest or an invoice after the due date, for example.

If the late-payment interest relates to a loan that meets the security requirements, you can claim a deduction for the full amount – provided that the interest is calculated based on the size and duration of the debt.

The rules on limited deductions for interest on unsecured loans also apply to late-payment interest. If the late-payment interest relates to an unsecured debt, you can claim a deduction for 50% of the amount for the 2025 income year.

Although you can only claim a 50% deduction, the full amount of late-payment interest must be entered in your tax return, in box 8.8 (“Interest expenses on unsecured loans”).

Starting from the 2026 income year, you cannot claim any deduction for late-payment interest on unsecured loans.

Details of how interest is calculated, and whether your loan is secured, will be stated in the loan terms and conditions.

Deductions for income year 2025 (tax return filed in 2026)

You can claim a deduction for the full amount of interest expenses on loans that meet the requirements for security and maximum loan-to-value ratio.

You can only claim a deduction for 50% of your interest expenses on unsecured loans. This applies to personal loans without security, bridging loans for property purchases, credit card debt and loans from private individuals, for example. The full interest expense amount must be stated in your tax return. Enter this amount in box 8.8 if it is not already prefilled.

Deductions for income year 2026 (tax return filed in 2027)

From 1 January 2026, you are only entitled to claim a deduction for interest expenses on loans that meet the requirements for security and maximum loan-to-value ratio.

This means you can no longer be granted a deduction for unsecured loans such as personal loans without security, bridging loans for property acquisitions, credit card debt and loans from private individuals.

Loans that do not meet the security requirements

Examples of loans that do not meet the requirements include the following:

• personal loans without security
• unsecured consumer credit for purchases of goods or services
• credit card debt and unsecured overdraft facilities
• bridging loans (short‑term loans to finance the purchase of a new property before an existing one is sold)
• loans provided by a private individual

Loans that meet the security requirements

You can claim a deduction for loans that meet the security requirements, such as loans secured on:

• residential property, holiday homes, plots of land and site leaseholds
• vehicles
• boats and ships
• aircraft
• securities

You can also claim a deduction for interest on loans:

• provided by a pawnbroker
• to cover new home construction, or extension or rebuilding costs – if the loan will be converted into a residential mortgage when the building project is complete (construction loans.)

Residential- mortgage interest expenses

You can claim a deduction for the full amount of loan interest expenses on loans secured by immovable property, site leaseholds, tenant-owner property or similar. If you buy a residential property and take out a mortgage secured by the property, you can claim a deduction for all your interest expenses.

The loan must have been provided by an authorised credit institution or lender in accordance with the Swedish Mortgage Business Act. The maximum loan-to-value ratio for residential mortgages is 85% under the current regulations. This means that the amount of a loan secured by your home cannot exceed 85% of your home’s market value at the time of borrowing.

Secured and unsecured loans for property

If you buy a residential property, and you take out a private loan in addition to a mortgage secured by the property, different rules apply regarding the share of interest expenses for which you can claim a deduction. You are entitled to claim a deduction for the full amount of interest expenses on the secured mortgage. For the unsecured private loan, you are entitled to claim a deduction for 50% of the interest expenses for the 2025 income year. From income year 2026, you are not entitled to claim any interest deduction for unsecured loans.

Interest expenses on vehicle, boat, ship or aircraft loans

You can claim a deduction for the full amount of loan interest expenses on the purchase of a vehicle, boat, ship or aircraft (these are referred to as “the goods” below). A deduction can only be granted if all of the following requirements are met:

• both the seller of the goods and the lender are business owners.
• the goods serve as collateral to secure the loan.
• both the goods and the borrower are identifiable in the credit agreement.

In order for you to be granted a deduction for interest expenses on a vehicle loan, your purchase must be registered under your name in the Swedish Transport Agency’s Road Traffic Register. In the case of co-ownership (for example, if spouses take out a joint car loan), a vehicle only has to be registered under one borrower’s name.

In order for you to be granted a deduction when buying a ship or aircraft, you must be listed as the owner in the Swedish Register of Shipping or Swedish Civil Aircraft Register accordingly.

If you still have the loan but no longer own the goods you bought in connection with the loan (i.e. your collateral), you cannot claim a deduction for the interest expenses.

The maximum loan-to-value ratio for vehicle, boat, ship and aircraft loans is 80% under the current regulations. This means that the maximum loan amount for a secured loan is 80% of the market value of the goods in question at the time of borrowing.

Interest expenses on loans backed by securities

You can be granted a deduction for the full amount of interest expenses on a loan provided by a credit institution or securities company, provided that the loan is secured by:

• financial instruments admitted to trading on a regulated market or similar market outside the EEA
• financial instruments traded through a multilateral trading facility within the EEA
  
• shares in investment funds or special reserve funds

Endowment policies do not meet the requirements outlined above. The Swedish Tax Agency therefore considers that interest expenses on loans secured by endowment policies do not qualify for a deduction under the new regulations.

What are regulated markets and multilateral trading facilities? (In Swedish)

Interest expenses on loans provided by pawnbrokers

You can be granted a deduction for the full amount of interest expenses on a loan provided by a pawnbroker licensed in accordance with Swedish legislation. Since the loan is secured solely by the pledged item, and the lender’s claim is limited to this item, you are not personally liable for repayment of a loan from a pawnbroker. However, you can still claim a deduction for interest expenses on such a loan.

Interest expenses on loans to cover new home construction, extension or rebuilding costs

You can claim a deduction for the full amount of interest expenses on a loan you have taken out to cover new home construction, extension, or rebuilding costs – if the loan will be converted into a residential mortgage when the building project is complete. This is known as a construction loan. The loan must have been provided by an authorised credit institution or lender in accordance with the Mortgage Business Act.

The maximum loan-to-value ratio for building loans is 85% under the current regulations. This means you can take out a maximum secured loan of 85% of the expected market value of the property in question when the building is complete.

Here’s how interest expenses affect your tax in the event of a capital surplus or deficit

You can check whether you have a capital surplus or deficit in your preliminary tax assessment and final tax statement.

Capital deficit

If you have a capital deficit, you will be granted a deduction for the deficit amount through a tax reduction.

Capital deficit can occur in the following circumstances, for example:

• if you have interest expenses
• if you have made a loss on the sale of securities

If you have a capital deficit, you will be granted a tax reduction corresponding to:

• 30% of the part of the amount up to SEK 100,000
• 21% of the part of the amount over SEK 100,000

Tax reductions (in Swedish)

Capital surplus

If you have made a profit on the sale of a residential property or securities, you might have a capital surplus.

If you have a capital surplus, you pay state income tax at 30% on the amount in question.

Calculate your tax

You can use our e-service “Räkna ut din skatt” (in Swedish) to help you calculate your tax.

Reallocation of interest expenses

If you have a joint loan with someone else, you can reallocate the interest expenses between you in a way other than that shown in your prefilled tax return. You reduce your share by reporting a lower expense amount in your tax return – in box 8.1 (for interest expenses on secured loans) or in box 8.8 (for interest expenses on unsecured loans). The other borrower must then enter a correspondingly increased amount in box 8.1 or 8.8 of their tax return.

If you would both like your joint loan to be distributed differently in your respective prefilled tax return, please contact your bank or lender.

Applying for a tax adjustment

If you know that you are entitled to claim deductions for interest expenses, you can apply for a tax adjustment. This means that a payer will deduct less preliminary tax from your compensation, instead of you getting a tax refund when you receive your final tax statement.

Please be aware of the new rules on deductions for interest expenses when you apply for a tax adjustment. You must enter only interest expenses for which you are entitled to claim a deduction in box 34. Do not include any interest on unsecured loans.

Tax adjustments: pay the correct amount of tax from the start (in Swedish)

Interest paid in another country

In order for you to be granted a deduction for the full amount of interest expenses that you have paid in another country, the lender must be located within the EEA, or in a country with which Sweden has a tax convention that contains a provision relating to the exchange of information.

Other than the above requirement regarding the lender, the same deduction entitlement rules apply as for interest paid in Sweden, provided that you have unlimited tax liability in Sweden.

Liability for taxation

Deductions for income year 2025 (tax return filed in 2026)

For the 2025 income year, you can claim a deduction for the full amount of interest expenses if:

• the lender is based in the EES, or in a state that has signed a tax convention with Sweden containing a provision relating to the exchange of information
• the loan meets the security and maximum loan-to-value ratio requirements

If the loan does not meet the security requirements, you can only claim a deduction for 50% of the interest expenses. You must fill in the full amount of interest expenses, regardless of whether you enter it in box 8.1 (for interest expenses on secured loans) or box 8.8 (for interest expenses on unsecured loans).

Deductions for income year 2026 (tax return filed in 2027)

From income year 2026, you are only entitled to claim a deduction for interest expenses if:

• the lender is based in the EES, or in a state that has signed a tax convention with Sweden containing a provision relating to the exchange of information
• the loan meets the security and maximum loan-to-value ratio requirements

If the loan does not meet the security requirements, you are not entitled to a deduction for the interest expenses.

Income generated from an asset in another country

If you have full tax liability in Sweden, and have a loan on an asset in another country from which you receive income, you can only claim a deduction for the interest expenses if the income from the asset is subject to taxation in Sweden.

If you run a sole trader business

The regulations regarding unsecured loans and the requirement that the lender must be located within the EEA apply only to private loans. They do not apply to business loans. Interest expenses on business loans must be booked and reported in annexe NE.

Deductions glossary for sole traders (in Swedish)