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new tax system proposed

New property tax to benefit small homes

Published tisdag 21 augusti 2012 kl 08.54
Strandvägen in Stockholm. Photo: Anders Holmström/Scanpix

A new investigation will suggest to the government that property tax in Sweden be proportionate to the living area of the property, reports Swedish Radio.

The proprosal, which would be implemented starting 2015, would benefit student room and small property owners, but owners of large properties would pay higher taxes.

The proposal also outlines that the cap on property tax, which is today just over US$ 1,000, would be raised to US$ 1,500 in order to balance out the lower taxes paid by those with a smaller property area.

According to the present system for regulating property tax, the owner of a large apartment in central Stockholm pays the same amount as the owner of a student room the size of ten square metres in the smaller northern town of Umeå.

The proposal also suggests that Sweden be divided into three tax zones, with highest tax rates in the large cities of Stockholm, Gothenburg and Malmö, and lowest in rural areas.

However, Anders Ericsson from the Swedish Homeowners Association tells Swedish Radio he is skeptical of the proposal.

"This will create uncertainty on the property market. One of the most important property reforms from 2006 was the cap on property tax, and now it's being raised", he says.

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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