Swedish Government has recently announced several tax reductions which might be included within 2026 Budget, to be approved next autumn. The reforms would impact the taxation of both companies and individual persons that are liable for taxes in the country.
Objectives of the reform
The main purpose is to reinforce the economy and enhance investment conditions and growth opportunities for the companies established in Sweden. The reform aims to try to counteract the higher tariffs and uncertainty around trade barriers, which may have negative consequences on investments' disposition. The measure would entry into force on January 1st, 2026. Its impact is estimated to be a decrease of 6 billion crowns ($628.8 billion) of tax income.
Changes in Corporate Tax
Finance Ministry of Sweden has published in May 2025 the Memorandum Fi2025/01067, on which they propose to decrease corporate income tax (CIT) rate on 0,6%, from current rate of 20.6% to 20%.
Non-resident tax reform
Another proposal covers the reduction of the rate of income tax of non-residents (known as SINK). Currently, the applicable tax rate is 25% for individuals living abroad who have Swedish-sourced income, while a reduction to 20% has been proposed with the aim of guarantying tax neutrality. This reform would impact approximately 90.000 individuals in 2026, according to the estimation shared by the Finance Ministry.
Tax benefits in Sweden
Furthermore, the Government has presented other potential reductions to tax on electricity consumption and VAT on admissions to dance events (from 25% to 6%). Some other fiscal incentives focused on environmental protection are fiscal exemptions for employees who decide to charge their electric vehicles at work, or tax relief regarding public transport passes.
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