The KD proposal, presented in a motion in the Riksdag, is that the capital gains tax of 22 percent of the profit in housing transactions is reduced by 2 percentage points per year starting from the time the owner has had the home for five years. After 16 years, the reductions would result in a capital gains tax of zero.
It has received a huge response, says Ebba Busch in an interview before the KD's national congress in Linköping this weekend.
We need to increase mobility in the Swedish housing market, she adds.
“It’s not small potatoes”
KD estimates that the tax cut would cost 12-15 billion per year in lost revenue for the state.
It's not small potatoes. But the sluggishness in the Swedish housing market is no small issue either. It has enormous consequences for families with children who want to enter the villa segment, says Busch.
If the Tidö parties – M, KD, L and SD – win the 2026 election, Busch would like to see the proposal in a new Tidö Agreement.
We will have to take that into consideration in the government negotiations then.
For Busch, increased mobility in the housing market is an electoral issue – alongside “order and order in migration, energy and crime prevention”, as well as KD proposals such as abolishing the regions and investing more in healthcare.
Expect us to continue to pursue this.
Capital gains tax on homes is something that the Swedish Home Owners' Association has branded for many years as a "moving tax", which creates lock-in effects. But economists are divided on this.
"Capital gains on homes should be taxed. But how high we tax them is debatable," says Daniel Waldenström, professor of economics at the Institute for Business Research (IFN).
Odd model
He sees different tax rates depending on the holding period as an odd model compared to other countries:
This probably does not contribute positively to the housing market.
When it comes to the sluggishness in the housing market, Waldenström sees rent regulation as the biggest problem, especially in big cities.
Associate Professor Bo Söderberg, KTH, is on the same track:
The question is whether this solves any major problems. It is highly doubtful, he says of the KD proposal.
All major institutions in the housing market can be questioned. They should be reviewed. Although it is something different than a single percentage in tax.
He calls for a "sustainable system" with subsidized housing for the weakest households and reforms of rent regulation, the land lease system, the Planning and Building Act, the municipal planning monopoly and the Tenancy Rights Act.
Joakim Goksör/TT
Facts: The KD proposal in brief
TT
Today's model of capital gains tax on housing was introduced in 1991. The tax rate was then increased just over 20 years ago from 15 to 20 percent and has since been raised once more, up to 22 percent in 2008.
Last year, the state collected a whopping 27 billion in taxes on profits from the sale of villas, condominiums and returned deferrals from just over 163,000 people, according to the Swedish Tax Agency.
The Christian Democrats (KD) are now proposing that the tax rate be reduced by 2 percentage points per year after five years of home ownership, down to 0 percent in capital gains tax after 16 years of ownership. The proposal, which KD expects would cost 12-15 billion to implement, was presented in a parliamentary motion from KD's housing policy spokesperson Larry Söder and party colleague Hans Eklind.
The other three Tidö parties – the Moderates, the Liberals and the Sweden Democrats – have not taken a stand on the issue, although there have been some encouraging comments in the media from individual party representatives.
