Sweden: Proposed changes to interest deduction limitation rules

Changes are proposed to become effective January 1, 2026.

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June 13, 2025

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

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