Accounting, Payroll, Tax & Legal since 1989

Newletter 2 2016

1. New amortization regulation into power
The 1st of June new amortization regulation will come into power. New mortgage borrowers will likely be forced to pay off part of the loan. The new rules will apply to loans for more than 50 percent of the value of the property, where the borrowers will have to amortize one percent per year. For those exceeding 70 percent, the requirement will be higher: two percent per year.

The debt of Swedish households grows around seven percent yearly and many experts have said Sweden could be creating the conditions for a debt crisis and housing bubble. The Central Bank, the Financial Inspectorate and the National Institute of Economic Research have warned of the risks of a bursting housing bubble for the Swedish economy.

However, Swedish banks have taken a head start and are already asking their clients to pay off their mortgages. In most cases, they are complying. More than 90 percent of borrowers at Sweden's largest banks, who have loans worth more than 70 percent of the property's value are already paying off part of their mortgages.
The government will have exemptions for borrowers with financial difficulties, including people out of work or on medical leave. There will also be an exception for new constructions, in order to promote more building. (Source: Swedish Radio)

2. Government proposes introduce a VAT limit
According to EU legislation Sweden has the right to introduce a VAT limit at a turnover at 91500 SEK. Below this amount there is no obligation to announce VAT to the tax authorities. The proposed VAT limit is now 30.000 SEK and the new law – if passed -will come into power 1st of January 2017.

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