Government to Abolish Cost Rent for Major Cultural Institutions

The Government is abolishing the criticized cost rent for five large cultural institutions. This is an important step towards a long-term sustainable model, says Fredrik Lindgren, CEO of the Royal Opera, to TT.

» Published: September 04 2025 at 14:06

Government to Abolish Cost Rent for Major Cultural Institutions
Photo: Pontus Lundahl/TT

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The National Property Board is now tasked with initiating renegotiations of the lease agreements for the main buildings of the Royal Opera, Royal Dramatic Theatre, National Museum, Swedish Museum of Natural History and Historical Museum.

We have begun renegotiating regarding a market rent, says Parisa Liljestrand (The Moderate Party), Minister of Culture, to SVT News.

In a press release, she says that they will create better planning conditions economically and operationally for the five cultural institutions.

Criticized model

In 2001, a so-called cost rent was introduced for the institutions. This means that the tenant pays the National Property Board costs for operation, maintenance of the properties, administration and capital costs. The institutions pay for all renovations, which are charged through the rent.

But the model has long been criticized because it places the burden of costly renovations on the tenant, which has led to economic crisis for several institutions.

Last year, an investigation appointed by the government proposed that the cost rent should be replaced with market-based rents, but emphasized that the government grants must then be adjusted to neutralize the effects of changed rent levels.

The grant must be adjusted immediately in connection with the rent increase, and an adjustment must be made continuously, otherwise we will not have a sustainable model and have no money for production, says Dramaten's CEO Kitte Wagner, who also believes that the local standard must be market-based.

From next year

The National Property Board shall report the assignment no later than January 15, 2026, and for the Royal Opera in Stockholm no later than February 1, 2031.

The new lease agreements can begin to apply on July 1, 2026, with the exception of the Royal Opera's main building, which will be evacuated for a longer period due to renovations.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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