The ROT deduction is one of the most important tax relief schemes in Sweden for people using renovation and construction services. It allows you to reduce the cost of a contractor’s labour when renovating a house or flat. In practice, this means that part of the labour costs is deducted from your tax.
The system works simply. When you book a service with a contractor, the rotavdrag deduction is usually applied directly on the invoice. You therefore only pay part of the labour costs. The contractor settles the remainder with the Swedish Tax Agency (Skatteverket).
Thanks to this scheme, renovation work can be significantly cheaper. Many people take advantage of this tax relief when modernising their kitchen, renovating their bathroom or carrying out plumbing work.
In this article, you will learn:
- What rotavdrag is
- How it works in practice
- How much you can claim
- What work is covered by the ROT tax relief
- Who is eligible for the deduction
- How does ROT differ from RUT
- How to claim rotavdrag on Fixare24
- Other important information about the deduction
1. What is the ROT tax relief
Rotavdrag is a tax relief scheme for private individuals in Sweden. It allows you to reduce the cost of renovation work carried out on your house or flat.
The abbreviation ROT comes from three Swedish words:
- Reparation – repair
- Ombyggnad – conversion
- Tillbyggnad – extension
In practice, this means that the relief covers a wide range of work related to the modernisation or maintenance of property.
The ROT tax relief scheme was introduced primarily to:
- encourage residents to use legal renovation services
- reduce undeclared work in the construction industry
- support the renovation and construction services sector.
Today, the rotavdrag is one of the most widely used tax credits in Sweden.
2. How the ROT tax relief works in practice
One of the biggest advantages of the system is its simplicity. You don’t have to submit an application to the tax office yourself.
The process usually works like this:
- You book a renovation service with a contractor.
- The contractor issues an invoice including rotavdrag.
- You pay only part of the labour costs.
- The contractor reports the deduction to Skatteverket.
It is worth remembering one important rule. The deduction applies only to labour costs. The cost of materials, transport or equipment is not covered by the deduction.
3. ROT tax relief – how much can you save?
One of the most common questions is: ROT tax relief – how much can you deduct in a year?
The deduction currently amounts to 30% of the contractor’s labour costs. In practice, this means you can pay up to around 30% less for labour if you use services covered by the relief.
From 1 January 2026 the following limits apply:
- the total amount of ROT and RUT deductions may not exceed SEK 75,000 per year
- a maximum of SEK 50,000 of this amount may be ROT deductions
The limit applies to one person per tax year.
If you are a co-owner of a property, each owner may use their own deduction limit. This means that for major renovations, the limit for two people can be utilised. In practice, this allows you to deduct a significantly larger portion of the labour costs.
The amount of the deduction depends on both the applicable annual limit and the amount of tax you have paid in the year in question. You can claim the deduction up to the maximum amount to which you are entitled, but not more than the amount of your tax. If you are entitled to a deduction higher than the tax you have paid, you will only be able to use part of it. The unused amount does not carry over to the following year and is not refunded.
It is worth bearing in mind that the date of payment of the invoice determines the year in which the deduction will be applied.
4. What work is covered by the ROT tax relief
Rotavdrag covers a wide range of construction, repair and renovation works carried out in existing residential properties. These may include, amongst others:
- bathroom and kitchen refurbishments, including tiling, the installation of built-in fixtures and certain household appliances in connection with construction work
- painting and wallpapering, e.g. painting walls, ceilings, internal doors, radiators and kitchen fronts
- flooring work, such as sanding, replacing and laying floors
- carpentry work, e.g. replacement or repair of internal doors, kitchen fronts and built-in fittings
- electrical work, such as upgrading the electrical system, installing new sockets, distribution boards and recessed light fittings
- plumbing work (VVS), e.g. installation or replacement of taps, toilets, showers, baths, washbasins, floor drains, radiators and water pipes
- glazing and metalwork, such as the repair or replacement of windows, double-glazed units, metal roofs, gutters and downpipes
- work on the façade, roof and entrance to the house, e.g. repair of the façade, roof tiles, entrance steps, balconies and terraces attached to the building
- earthworks and excavations near the house, if required for the supply of water, drainage, heating, electricity or internet, or for the extension of the building
- bricklaying and work on fireplaces, e.g. on the chimney, flue, open fireplace, tiled stove or chimney sweeping, unless this is required by law
- cleaning associated with renovation work, e.g. cleaning up after refurbishment, cleaning the roof, façade, terrace, ventilation systems, kitchen ducts or drains
- removal of hazardous materials in connection with construction work, e.g. asbestos or radon, as well as certain repairs following damage caused by pests.
5. Who is entitled to the ROT tax relief
To benefit from this tax relief, you must meet a few basic conditions.
First and foremost:
- you must be paying tax in Sweden
- you must be at least 18 years old by the end of the year
- you must be the owner or co-owner of a property or flat
- the work must relate to your property
In addition, the company providing the service must have F-skatt. This is a tax status confirming that the business is operating legally. If the contractor does not have F-skatt, the deduction cannot be applied.
The ROT deduction does not apply to new builds or the finishing of a newly built house.
In the case of detached houses, the so-called five-year rule also applies – the deduction cannot be applied to conversion or extension work for the first five years from the year of completion (the so-called värdeår – value year). It is the year that counts, not the exact date of completion of the work.
However, in the case of flats in multi-family buildings and owner-occupied flats, the deduction may be claimed after completion of construction, but it still does not cover the construction itself or its finishing.
In the case of flats in a housing cooperative (bostadsrätt), the scope of work covered by the relief depends on who is responsible for a given part of the property. The flat owner is usually responsible for internal elements, such as the kitchen, bathroom, floors, walls or installations within the flat. The housing cooperative, on the other hand, is responsible for the common parts of the building, for example the roof, façade, stairwells or main installations. Therefore, the rotavdrag can only be applied to work falling within the scope of the flat owner’s responsibility.
6. The difference between the ROT and RUT tax credits
There are two similar tax relief schemes in Sweden: rotavdrag and rutavdrag.
Rotavdrag primarily applies to renovation and construction work. Rutavdrag, on the other hand, covers domestic services.
Services covered by rutavdrag include, amongst others:
- cleaning
- laundry and ironing
- gardening
- snow clearing
- childcare
- removals and transport
- minor household services
If you’d like to find out more about this tax relief, read our article ‘Rutavdrag – what it is and what services it covers’.
7. How to claim the tax relief with Fixare24
If you use the services of contractors belonging to the Fixare24 network, the process for claiming the tax relief is simple.
You can indicate that you wish to claim the rotavdrag right in the basic order form. This ensures the contractor knows from the outset that you plan to claim the tax relief when filing your tax return.
Once you have accepted the quote, you will receive a separate form from us in which you provide the details needed to claim the deduction with Skatteverket. These details are required by the tax office and are used solely for the purpose of claiming the tax relief.
Once the work is completed, the contractor will include the rotavdrag on the invoice and report the deduction to the tax office.
8. Rules and limits for rotavdrag
The company providing the service applies the ROT deduction directly on the invoice. This means your payment is immediately lower.
At the same time, it is worth remembering that you are responsible for monitoring the total amount of deductions used in a given tax year.
Skatteverket regularly informs you of the amount of deductions used. If you know that you have already reached the annual limit, it is worth informing the contractor of this before the invoice is issued. This will help you avoid a situation where a tax arrears appears on your tax return.
It is also worth remembering that the ultimate responsibility for the right to a deduction lies with the taxpayer. If, for any reason, Skatteverket does not approve the rotavdrag, the missing amount may be added to your tax return or the contractor may issue a supplementary invoice.
Did you know that…
As many as one in five or six people in Sweden make use of the ROT and RUT tax credits. The total value of these deductions exceeds 30 billion kronor annually. The number of people claiming the RUT deduction is growing faster, whilst the ROT deduction can save you tens of thousands of kronor on a single project.
FAQ – frequently asked questions about ROT
1. Can I claim the rotavdrag when renovating a flat?
Yes. The tax relief can be claimed for both detached houses and owner-occupied flats, provided the work relates to your property.
2. Are materials covered by rotavdrag?
No. The deduction applies only to the contractor’s labour costs.
3. Can I use rotavdrag several times a year?
Yes. You can claim the deduction multiple times during the year, provided you do not exceed the annual deduction limit.
4. Can rotavdrag and rutavdrag be combined?
Yes. Both deductions can be claimed in the same tax year. However, there is a combined annual limit.
5. Does the contractor need to have F-skatt?
Yes. The company providing the service must have F-skatt in order for rotavdrag to apply.
