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MONEY

How you can get 10,000 Swedish kronor for scrapping a petrol or diesel car

Under a new scheme which comes into force on August 5th, you can get 10,000 kronor for scrapping your old petrol or diesel car -- so long as you commit to driving electric for at least a year. Here's how to apply.

Published: 29 July 2024 14:21 CEST
Updated: 4 August 2024 06:36 CEST
How you can get 10,000 Swedish kronor for scrapping a petrol or diesel car
People who scrap old petrol or diesel cars and switch to an electric can get a 10,000 kronor subsidy from August 20th. Photo: Pål Sommelius/TT

What is the scrapping bonus for older cars? 

The “scrapping bonus for older cars”, or statlig skrotningspremie för äldre bilar, was announced by the government in May and formally decided by Sweden’s government on July 25th. It will into force on August 5th and will be valid for just one year, ending on August 19th, 2025. 

The idea is to encourage people who own old diesel and petrol cars to scrap them and to buy or lease an electric car instead. 

Who is eligible for the bonus? 

Anyone who scraps an old car between August 20th 2024 and August 19th 2025, and then either buys an electric car or signs a deal to lease one for a year, is eligible to receive the bonus. 

The car to be scrapped: 

  • must have been owned the applicant since September 6th, 2023 
  • must be roadworthy. It must have passed a vehicle safety test since July 6th, 2022 
  • must be powered by petrol or diesel and have an emission class of Euro 4 or worse (which includes most cars produced before 2011)

There is no lower limit on how much the electric car to be puchased should cost. 

How do you apply for the bonus? 

From August 5th, you will be able to apply for the bonus electronically on the website of Boverket (The National Board of Housing, Building and Planning), which is responsible for administrating the payments. The electronic application form will be posted to the board’s existing page on the bonus. 

What documents will you need to provide? 

The scrapping premium application must contain:

  • the applicant’s name, social security number and contact details
  • the applicant’s Swedish bank account details, bank giro or plus giro
  • the registration number of the scrapped car and the purchased or leased electric car,
  • details of the authorized car scrapper to which the scrapped car has been handed over
  • a declaration that the scrapped car has not been used by the applicant or a relative of the applicant in individual business activities 
  • a declaration that the purchased or leased electric car is not intended to be used by the applicant or a relative of the applicant in individual business activities 
  • a declaration that the electric car has not been owned by a relative of the applicant.

How much money is available in total?

The government has provided 250 million kronor in funding the 2024, enough to subsidise the scrapping of 25,000 old cars.  

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For members

ECONOMY

Winners and losers: What are the tax cuts for Sweden in 2025?

A total of 27 billion kronor of Sweden's 60 billion kronor budget reforms will go towards lowering taxes. Let's take a look at the main tax cuts and who is set to benefit the most.

Published: 19 September 2024 11:55 CEST
Winners and losers: What are the tax cuts for Sweden in 2025?

Who are the winners and losers?

Two high earners who have a joint income of around 180,000 kronor a month will get just over 3,400 kronor more in their bank account every month, whereas a couple of pensioners will only get 226 kronor more a month, according to banking giant SEB.

What are the tax cuts?

A new employment tax credit, a rebate given to everyone who has a job, worth 11 billion kronor. This will benefit everyone earning more than 16,000 kronor a month.

A rule that previously reduced the employment tax credit the more you earned will be scrapped. People earning between 778,000 kronor and just over 2 million annually will benefit the most. It’s expected to cost the state 4.7 billion kronor.

Taxes for pensioners are being lowered to the tune of 2.5 billion kronor, which means a median pensioner will see their taxes lowered by approximately 1,400 kronor a year.

The cap on who has to pay state tax will be raised to monthly salaries of 53,590 kronor. This cap is usually automatically raised every year in line with inflation, but last year the government suspended the hike due to Sweden’s rampaging inflation at the time.

READ ALSO:

Are you one of 3.5 million people in Sweden saving money in an ISK account? In the new budget, the fixed tax on ISK accounts will be scrapped for any accounts with a balance of less than 150,000 kronor, rising to 300,000 kronor in 2026.

Cutting Sweden’s aviation tax will cost the state 870 million kronor. It corresponds to around 80 kronor for a domestic flight.

A total of 3.2 billion kronor will be spent on lowering the tax on fuel for vehicles.

If you own a motorhome, you’ll get a tax cut of almost 7,000 kronor, as 90 million kronor of the budget is allocated to lowering taxes on recreational vehicles.

What are the reactions?

The centre-left opposition immediately accused the government of unfairly prioritising high earners, also criticising the fact there’s significantly less money earmarked for welfare in this budget compared to last year: down from 16 billion to 7.5 billion kronor.

“It not only makes a mockery of ordinary people, but is also bad for the Swedish economy,” said Mikael Damberg, finance spokesman for the Social Democrats.

  • Don’t miss the latest news and analysis about the Swedish economy by downloading The Local’s app (available on Apple and Android) and then selecting Economy in your Notification options via the User button

Pensioners’ association PRO also argued their members should have been compensated more in the budget. “We’re really talking ‘thumbs down’,” PRO chairwoman Åsa Lindestam was quoted by the TT news agency as saying.

Swedish Commerce, the association serving the trade and commerce sector, on the other hand welcomed the budget, as its members are directly affected by strengthening customers’ purchasing power – a key priority for the government in the bill.

The Confederation of Swedish Enterprise also praised the budget for trying to speed up growth, get more people into work and strengthen Sweden’s competitiveness.

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