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Ten new laws that come into force in Sweden in 2021

These are some of the law changes you may want to be aware of in Sweden this year.

Published: 5 January 2021 08:59 CET
Updated: 18 January 2021 08:10 CET
Ten new laws that come into force in Sweden in 2021
Some of these new laws may affect your economy. Photo: Fredrik Sandberg/TT

Standard income assessment for deferred tax on gains from housing sales abolished

When you sell a property in Sweden, you are liable to pay capital gains tax of 22 percent on any profit you make, but you can defer payment as long as you use the money to buy another home in the EU/EEA. If you bought your new house in Sweden you previously had to pay around 0.5 percent interest on the postponed tax – but that changed on January 1st, when Sweden scrapped these interest payments.

According to the Tax Agency (Skatteverket), this means that if you sold your home in Sweden 2014-2019, you may be entitled to money back. If you think this applies to you, you should contact Skatteverket, and you can also read more (in Swedish) here.

Deduction for household work expanded and ceiling raised

Sweden's RUT tax deductions, which means you can get money back on your taxes if you've had cleaning work done in your home, were expanded on January 1st.

This means that it now includes for example sending your clothes to a professional cleaner, furnishing services, and transporting old items to for example a second hand shop. The cap has also been raised to 75,000 kronor.

The Local's guides to your Swedish money:


Sweden's RUT deductions become more generous in 2021. Photo: Jonas Ekströmer/TT

Financial employer concept introduced for people living abroad but working temporarily in Sweden

On January 1st, Sweden introduced a new 'financial employer concept' to cover people who usually live abroad but are temporarily working in Sweden, and determine how income taxes should work for that person. The new law states that the key factor will not be who the employer is, but rather on whose behalf the work is carried out.

Provisions on registration of drone operators introduced

New rules for drone operators came into force on January 1st. This means that people who want to fly drones heavier than 0.25 kilos will have to apply for a drone licence, and a person in charge of flight will need to register for an operator ID.

Passport fees raised by 50 kronor

Those who wish to apply for a Swedish passport have to pay 400 kronor, rather than 350 kronor, as of January 1st. The reason is that the Police Authority's passport offices have been running a deficit in recent years.

Youth supervision – a new penalty for young offenders

This new rule, which came into force on January 1st, means that young offenders can be sentenced to ‘youth supervision', a sentence that will be delivered in cases where other kinds of penalties for young offenders are not harsh enough to reflect the nature of the crime or the person's previous criminal record. In practice, it could mean a curfew, or being barred from certain places.


Young offenders could be handed a curfew order. Photo: Johan Nilsson/TT

Tax reduction introduced for people who make green investments

From January 1st, people who make green investments can get tax deductions of 15 percent for solar cells and 50 percent for storing self-produced electrical energy and charging points for electrical vehicles – although no more than 50,000 per person and year. The new model will be similar to tax deductions for cleaning and home renovation services (ROT & RUT) so the buyer will benefit at the point of purchase.

Introduction of a regional tax reduction in certain sparsely populated municipalities

This one came into force on December 1st, 2020, but takes into account the start of the tax year beginning after December 31st, 2019. It means that people who live in certain rural municipalities – mainly in Norrland and north-western Svealand – will get a tax cut of 1,675 kronor per year.

Supplementary provisions in the Withdrawal Agreement between the UK and the EU

The post-Brexit transition period ended on December 31st, 2020, which means that new regulations that came into force in Sweden on December 1st have now fully replaced the previous ones. For Brits in Sweden, this means that they will have to apply to the Swedish Migration Agency for a new residence status to protect their future in Sweden.

Provisions on reduction in employers' social security contributions for the first employee made permanent

Since 2017 it has been possible for some one-man operations to reduce social security contributions when they hire their first employee. These rules were temporary and set to expire at the end of 2021, but will instead become permanent from January 1st, 2021.

These are examples of some of the new laws that come into force in Sweden in 2021. A full list of all laws, including temporary laws introduced as a result of the coronavirus pandemic, can be found in English here, and a more thorough explanation in Swedish here.

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MONEY

How to protect your Swedish savings when the stock market tumbles

Recent stock market developments have made consumers in Sweden worried about the savings they have invested in the market.

Published: 5 August 2024 14:44 CEST
How to protect your Swedish savings when the stock market tumbles

Stock market volatility can be unsettling, especially when it hits close to home.

On Monday, the Stockholm stock exchange mirrored global market turmoil, with the OMXS index dropping 4.8 percent in morning trading. By 11 am, there was a slight recovery, but the index remained 2.6 percent down.

READ MORE: Stockholm stock exchange opens in the red amid global market jitters

Big names in Swedish industry weren’t spared: Boliden, a major mining company, dropped 3 percent, defence giant Saab fell 1.5 percent, and engineering firm Sandvik declined by 2.6 percent. In the banking sector, SEB took a 2.4 percent hit, while Swedbank dropped 3.6 percent.

This turbulence in the Swedish market came after significant drops in Japan’s Nikkei 225 index, which experienced its most significant one-day fall since the 1987 Black Monday Crash, and similar declines in markets across South Korea, Frankfurt, London, and anticipated losses on Wall Street.

In these uncertain times, many Swedish consumers with money invested in the market wonder whether they should do something to safeguard their savings.

Avoid impulsive decisions, expert warns

Stock market volatility can raise concerns about the safety of your savings, but according to SEB household economist Américo Fernández, there’s no need to panic.

“Should they be worried? I mean, no. I would say that this is how the stock market works: there’s a lot of uncertainty and risk connected,” he told The Local. 

“When you have savings on the global stock exchanges, this will happen, especially when we’ve had at least six months of really, really good returns – maybe even too good. Then, this is a little bit expected.

“But of course, it’s always dramatic when we have such developments in the stock market in just one or two days.”

Slow and steady wins the (investment) race

For those wondering how to protect themselves against such crashes, Fernández emphasised a consistent and steady approach to investing.

“The most common thing, the best strategy for the broad masses, is to save on a monthly basis. And this is what many Swedes do; our surveys show that 9 out of 10 Swedes save on the stock market every month. This is precisely what you should do: invest in a mutual fund, which is quite common in Sweden,” he said.

“In circumstances such as these, you buy more at a lower price, instead of timing the stock market, which is almost impossible, continue your monthly investments through mutual funds. That’s a good way of diversifying your portfolio.”

READ ALSO: Will the krona’s decline stop Riksbank from cutting rates?

Ignore the alarmist headlines

The SEB household economist also advised against reacting hastily to alarming headlines.

“Another thing that households should be aware of is that when you see alarming headlines, you should sit and calmly ride the wave out.

“It’s understandable that a lot of people are affected by herd mentality when we have these negative headlines. Everyone, but especially households with tiny savings, acts and sells, and then they buy again when the headlines are positive, when the stock exchange is at high levels…

“That is the opposite of what you should do. Try to neglect these things and be cool in these circumstances, even though it seems bad and hurts your wallet. However, if it hurts your wallet too much, that might be a signal that you have too much money in the stock market (laughs), which can be common for younger investors. Although they have had it pretty good recently,” he noted.

This advice is not only applicable to Sweden but also relevant across Scandinavia, according to Fernández.

“I think it’s applicable. Across Scandinavia, all Nordic countries save a lot of money on the stock exchange, partially because the pension system isn’t fully funded by the government,” he said.

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