Sweden: Proposed changes to interest deduction limitation rules
Changes are proposed to become effective January 1, 2026.
The government presented the legislative council’s referral on changes to improve the interest deduction limitation rules.
The proposed changes follow the government’s two-year study of the rules, which were first introduced in 2019, and include:
- New system for group-wide calculation of net interest
- Higher amount limit in the simplification rule
- Changes regarding the so-called targeted interest deduction limitation rules
- Completely new provision to be applied to cross-border loans from companies within the European Economic Area (EEA)
- Abandonment of the heavily criticized acquisition rule
The changes are proposed to become effective January 1, 2026.
Read a June 2025 report (Swedish) prepared by the KPMG member firm in Sweden