In a bid to stimulate the struggling construction sector, the Swedish government has increased the home renovation deduction (rotavdraget) for the year 2025. Homeowners Ebba Myhrman and Isac Wadsten have taken advantage of this opportunity by engaging in extensive renovations, handling most tasks themselves while employing professionals for specialized work such as plumbing and electrical installations. The couple emphasizes the importance of this tax benefit, noting that it has incentivized them to maximize their renovation efforts within the given timeframe.

According to tax expert Johan Schauman from the Tax Agency, the heightened rotavdraget allows homeowners to receive a significant subsidization of labor costs. In practical terms, this means that homeowners can claim a tax reduction amounting to half of the labor costs incurred, marking a substantial increase from the previous deduction rate of 30 percent. This reduction aims to invigorate the construction industry during a sector-wide downturn by making home renovation more financially viable for individuals looking to improve their properties.

Additionally, real estate brokers have observed a trend among younger buyers who are expressing a preference for fixer-upper properties. The adjusted rotavdraget not only benefits existing homeowners like Myhrman and Wadsten but also makes renovation projects more appealing to new buyers. As demand in the housing market shifts towards properties in need of renovation, this policy change could have lasting effects on both the market dynamics and the construction industry in Sweden.