The Swedish government is raising the ceiling for both the ROT and the RUT deduction next year by 25,000 SEK, from 50,000 to 75,000 SEK.
Many Swedes already renovate their homes more cheaply thanks to the ROT deduction.
The Swedish tax authority had paid out 136 million SEK to Spanish firms that clean and renovate for Swedes in Spain up to last year.
The government will propose that the ceiling for the ROT deduction be temporarily raised from 50,000 kronor to 75,000 SEK per person during 2024, and that separate ceilings be temporarily introduced for the ROT and RUT deductions respectively.
The proposal is due to come into force on 1 July 2024.
The temporarily raised ceiling is proposed to apply for the whole of 2024. It will, however, only be possible to use 50,000 SEK in ROT deductions during the first half of 2024.
The change comes into force on 1 July and means that the deduction for the full year amounts to 75,000 SEK, both for the RUT and the ROT deduction, the government writes in a press release.
At a press conference on Monday, the finance minister Elisabeth Svantesson (M) and the minister for infrastructure and housing Andreas Carlson (KD) announced that the RUT deduction is becoming more generous.
— We are doing this so that the RUT deduction does not crowd out important investment in renovation for households, says the finance minister Elisabeth Svantesson (M) at a press conference.
Swedes already use these deductions to renovate their homes in Spain, for instance. They are used more here than in other countries such as Portugal, France and Greece, where Swedes also have homes.
The deductions exist to avoid undeclared work in Sweden, but the rules apply across the EU so as not to impinge on free movement.
Facts/Rules for using the ROT deduction abroad
The first thing to know is that you must be a Swedish citizen and pay your tax in Sweden to use the ROT deduction. If you do, you are entitled to hire a tradesperson anywhere in the EU for work that qualifies for ROT. In brief, this is how it works:
You must have paid enough tax in Sweden to cover the ROT deduction.
You must own the property the work is to be carried out on (wholly or partly; owning a share of a house is fine).
If the tradesperson you hire is not from Sweden, you must obtain a certificate proving that they have no tax debts in their home country.
Source: rotavdragen.se