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, and according to the new position, parking spaces will also be subject to VAT from October 1, 2026.
Finance Minister Elisabeth Svantesson (M) 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.
There is an estimate that around one million people could be covered by the new rules, Svantesson says.
The Moderates will now push for an investigation to be set up to find a solution that means 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, says Elisabeth Svantesson and adds:
We need to find a solution to this as quickly as possible, and before October next year.
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
