Sweden raises home renovation tax deduction from 30% to 50%

Posted on March 28, 2025   |  

Sweden raises the ROT deduction from 30% to 50% to stimulate the economy.

ROT (Reparation, Ombyggnad, Tillbyggnad) in Sweden is a tax benefit that lets homeowners save 30% on labor costs for home renovations, extensions, and repairs. 

The maximum yearly discount is 50,000 SEK per person and applies only to properties in Sweden. 

The increase applies to renovations paid from May 12, 2025, costing SEK 4.35 billion.

The move aims to support the struggling construction industry during the downturn.

The government introduces initiatives for housing, road construction, and job creation.

Road maintenance funding increases by SEK 500 million, boosting infrastructure development.

More young people will receive summer jobs as part of the economic stimulus plan.

Total investments amount to SEK 5.8 billion, nearly half of the spring budget.

As of July 1, 2024, the ROT deduction ceiling increased from SEK 50,000 to SEK 75,000.