Renting or owning an apartment is VAT-free in Sweden – and anyone who rents a parking space adjacent to the home has therefore not previously paid VAT on it either.
But the Swedish Tax Agency has now changed its mind, meaning that parking spaces will also be subject to VAT from October 1, 2026. This could affect around 1 million people, according to Svantesson.
Quite surprised
The Minister of Finance says she was "quite surprised" when she received the news.
Many people have quite expensive parking spaces, it varies depending on where you live in Sweden. But regardless: 25 percent VAT on parking that is currently VAT-free will be tough for many in an already tough situation, she says.
It was in connection with a debate in the Riksdag, where the Social Democrats demanded answers from the Minister of Finance, that Svantesson announced that she would push to find a solution that means that the new VAT rules are not introduced.
"I will push this in our Tidö collaboration and I also believe that the other parties will think this is a good idea. We need to find a solution to this as quickly as possible, and before October next year," she says.
A: Time to act
Niklas Karlsson (S), chairman of the tax committee, thinks it is high time to act.
"We Social Democrats have been hounding the government on this issue. I am surprised that the Minister of Finance has done nothing and only now realizes that something must be done," he writes in a comment.
There are three criteria for exemptions for who must pay VAT on parking spaces, according to the Swedish Tax Agency's new assessment:
The parking space is located within the same property complex or in close proximity to the home or premises.
The tenant cannot, when signing their lease or later, opt out of the right to use the parking space and thus pay a lower rent.
The tenant does not provide the parking space for compensation in an economic activity.
If all three conditions are met, you do not need to pay VAT on the parking space, as it is then considered to be subordinate to the residential rental – which is VAT-free.
Source: Swedish Tax Agency
