EXPLAINED: What changes in Sweden in January 2023
Taxes are going down on petrol and solar panels, but up on alcohol and tobacco. There will be new laws on espionage and the age of retirement, and Sweden will take over the Council of the European Union. Here’s what’s changing in Sweden this January.
Sweden starts celebrations for King Carl XVI Gustaf's 50th Jubilee
The celebrations for the 50th anniversary of the ascension of King Carl XVI Gustaf to the throne begin on January 27th, with a “Sverigemiddag” or “Sweden Dinner” in Stockholm. All of Sweden’s county leaders will be invited, and they will be allowed to hand pick significant people from their respective counties to “set the tone” (tongivande människor). Read more here.
Tax reductions
From 1 January 2023, the energy tax on petrol and diesel will be temporarily reduced by 80 öre per litre, based on current indexation rules (meaning the actual reduction compared with December 2022 rates will be less than 80 öre per litre).
The total tax (energy tax and carbon dioxide tax) on low-taxed oil will be reduced by 722 kronor per cubic meter, also calculated based on the tax rates that would have otherwise applied.
The tax deduction for the installation of green technology, the so-called ‘green deduction’, is strengthened by increasing the subsidy for the installation of solar cells from 15 percent to 20 percent of the billed labour and material costs. The law change will apply to installations that have been paid for after December 31, 2022.
See the changes in tax rates on the website of the Swedish tax agency here.
READ ALSO: Everything that changes in Sweden in 2023
Tax increases
From 1 January 2023 the tax on beer and wine will be increased by five percent, the tax on spirits will be increased by one percent and the tax on cigarettes, snus and other tobacco will be increased by three percent.
In line with inflation, the tax on electricity will increase by about nine percent. The tax on flights will also see an increase of about nine percent for the same reason.
Fossil fuel companies will have to pay a temporary tax amounting to 33 percent on their profits, levied in addition to the ordinary corporation tax of 20.6 percent.
Employees given the right to work until 69 years old
As a result of a parliamentary agreement from December 2017, the age for an employee's right to remain in employment is gradually being raised. On 1 January 2023, the age will change from 68 years to 69 years. This doesn’t mean you have to work until you’re 69, just that you can.
Tax will be reduced for people who have reached the age of 66 at the beginning of the year and who continue to work. The tax reduction amounts to just over SEK 1,900 per year, and can amount to a maximum of SEK 6,000 per year.
Sweden will take over the Council of the EU
Sweden is taking over the Presidency of the Council of the European Union from the Czech Republic on January 1st, in a six-month role ending on June 23rd. Sweden’s goals for this role are, Prime Minister Ulf Kristersson explained, “keeping the EU together on the issue of Ukraine,” adding that the war in Ukraine “will affect the entire Swedish presidency.”
You won’t be allowed to disclose Swedish secrets to foreign powers
As of 1 January 2023, “foreign espionage”, “aggravated foreign espionage” and “disclosure of secret information in the framework of international cooperation” will be considered part of the penal code in Swedish legislation, following amendments to the Freedom of the Press Act and the Fundamental Law on Freedom of Expression. This might not seem like it would affect you (assuming you’re not a spy), but it could pose a threat to journalists and whistleblowers.
BankID reforms
A proposal to create a new state-run alternative to the BankID digital identity system is to be submitted to parliament next year, with a deadline of January 31st, 2023. It’s not clear yet what that proposal will entail, but it’s something to keep an eye on for those in Sweden who don’t qualify for BankID.
New law will push courts to process cases quicker
Sweden's parliament in November voted through a law which would place demands on courts to make sure that cases are handled rapidly. This law comes into force in January 2023.
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Sweden starts celebrations for King Carl XVI Gustaf's 50th Jubilee
The celebrations for the 50th anniversary of the ascension of King Carl XVI Gustaf to the throne begin on January 27th, with a “Sverigemiddag” or “Sweden Dinner” in Stockholm. All of Sweden’s county leaders will be invited, and they will be allowed to hand pick significant people from their respective counties to “set the tone” (tongivande människor). Read more here.
Tax reductions
From 1 January 2023, the energy tax on petrol and diesel will be temporarily reduced by 80 öre per litre, based on current indexation rules (meaning the actual reduction compared with December 2022 rates will be less than 80 öre per litre).
The total tax (energy tax and carbon dioxide tax) on low-taxed oil will be reduced by 722 kronor per cubic meter, also calculated based on the tax rates that would have otherwise applied.
The tax deduction for the installation of green technology, the so-called ‘green deduction’, is strengthened by increasing the subsidy for the installation of solar cells from 15 percent to 20 percent of the billed labour and material costs. The law change will apply to installations that have been paid for after December 31, 2022.
See the changes in tax rates on the website of the Swedish tax agency here.
READ ALSO: Everything that changes in Sweden in 2023
Tax increases
From 1 January 2023 the tax on beer and wine will be increased by five percent, the tax on spirits will be increased by one percent and the tax on cigarettes, snus and other tobacco will be increased by three percent.
In line with inflation, the tax on electricity will increase by about nine percent. The tax on flights will also see an increase of about nine percent for the same reason.
Fossil fuel companies will have to pay a temporary tax amounting to 33 percent on their profits, levied in addition to the ordinary corporation tax of 20.6 percent.
Employees given the right to work until 69 years old
As a result of a parliamentary agreement from December 2017, the age for an employee's right to remain in employment is gradually being raised. On 1 January 2023, the age will change from 68 years to 69 years. This doesn’t mean you have to work until you’re 69, just that you can.
Tax will be reduced for people who have reached the age of 66 at the beginning of the year and who continue to work. The tax reduction amounts to just over SEK 1,900 per year, and can amount to a maximum of SEK 6,000 per year.
Sweden will take over the Council of the EU
Sweden is taking over the Presidency of the Council of the European Union from the Czech Republic on January 1st, in a six-month role ending on June 23rd. Sweden’s goals for this role are, Prime Minister Ulf Kristersson explained, “keeping the EU together on the issue of Ukraine,” adding that the war in Ukraine “will affect the entire Swedish presidency.”
You won’t be allowed to disclose Swedish secrets to foreign powers
As of 1 January 2023, “foreign espionage”, “aggravated foreign espionage” and “disclosure of secret information in the framework of international cooperation” will be considered part of the penal code in Swedish legislation, following amendments to the Freedom of the Press Act and the Fundamental Law on Freedom of Expression. This might not seem like it would affect you (assuming you’re not a spy), but it could pose a threat to journalists and whistleblowers.
BankID reforms
A proposal to create a new state-run alternative to the BankID digital identity system is to be submitted to parliament next year, with a deadline of January 31st, 2023. It’s not clear yet what that proposal will entail, but it’s something to keep an eye on for those in Sweden who don’t qualify for BankID.
New law will push courts to process cases quicker
Sweden's parliament in November voted through a law which would place demands on courts to make sure that cases are handled rapidly. This law comes into force in January 2023.
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