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European Alternative Fuels Observatory

Sweden

Incentives and Legislation

The incentives and legislations section is undergoing a comprehensive annual update for 2025, due to be published by 18th April 2025.

The last annual update was to represent situation as of 2024, publihsed on 23rd April 2024.

Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.

If you know of other national or local incentives that should be included in this section, please send us an email, or use the button on the right, and let us know. We review the proposed changes and implement the updates on a short notice. 

Purchase Subsidies
  • No direct purchase subsidies exist for BEVs or PHEVs as of March 26, 2025, since the climate bonus ended in November 2022.
  • A scrapping premium of SEK 10,000 applies for scrapping a car over 15 years old and replacing it with an electric vehicle, with SEK 250 million allocated annually for 2024-2025.
Registration Tax Benefits

Sweden has no separate registration tax, only uniform administrative fees (e.g., SEK 1,240 for origin verification), offering no specific benefits for BEVs or PHEVs.

Ownership / Circulation Tax Benefits
  • BEVs pay an annual road tax of SEK 360 and are exempt from CO2-based taxation, keeping ownership costs low.
  • PHEVs face higher taxes based on emissions under the malus system.
Company Tax Benefits
  • For company cars, BEVs get a benefit value reduction of up to SEK 350,000 from the new price, capped at 50% of the value, effective in 2025.
  • A further 40% reduction on the remaining benefit value applies, capped at SEK 14,000 yearly.
  • Tax-free workplace charging lasts until June 2026.
VAT Benefits
  • No VAT benefits apply; BEVs and PHEVs are taxed at the standard 25% rate.
  • Businesses can deduct VAT on leasing/purchases for commercial use only.
Other Financial Benefits
  • A kilometer-based tax is under discussion for 2030, pending confirmation.
  • Fuel suppliers face higher reduction obligations from July 2025, indirectly boosting EV appeal.
  • Green technology tax reductions support charging box installations.
Interesting links
Local Incentives

Environmental zones (since 2020) restrict high-emission vehicles, electricity tax for charging stays low, and subsidies fund workplace/public chargers. Three heavy vehicle charging programs launch in 2025.

AF Infrastructure Incentives

Ladda Bilen grants cover 50% of private/workplace/residential charging installation costs.

New 2025 funding targets heavy vehicle charging: service stops, white routes, and Ten-T network expansion.

Are you aware of further incentives you want to bring to the Observatory's attention? Let us know by filling in this form.

Inform about incentive

Incentives and Legislation

The incentives and legislations section is undergoing a comprehensive annual update for 2025, due to be published by 18th April 2025.

The last annual update was to represent situation as of 2024, publihsed on 23rd April 2024.

Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.

If you know of other national or local incentives that should be included in this section, please send us an email, or use the button on the right, and let us know. We review the proposed changes and implement the updates on a short notice. 

Incentives and Legislation timeline

  1. November 8, 2022
    Abolishment of the Bonus Part of the Bonus-Malus System

    On November 8, 2022, the Swedish government abolished the bonus part of the bonus-malus system, effective for vehicles ordered after this date. The reason was that EV costs were now comparable to ICE vehicles, and a state subsidy was no longer justified. This ended direct purchase subsidies, potentially impacting EV adoption rates, especially for new buyers, with the malus part (higher taxes for high-emission vehicles) remaining in place.

  2. July 1, 2018
    Implementation of the Bonus-Malus System

    Starting July 1, 2018, the bonus-malus system was implemented. It provided a bonus of up to 60,000 kr for BEVs with zero CO2 emissions, decreasing linearly for vehicles up to 60 g/km, while imposing higher taxes (malus) for high-emission vehicles for the first three years. This system replaced earlier rebates and significantly boosted EV sales, with EV registrations hitting historic highs. It was a major policy shift, aligning with the 2017 climate law's targets.

  3. February 3, 2017
    Passing of Climate Law with Emission Reduction Targets

    On February 3, 2017, Sweden passed a climate law, committing to net zero emissions by 2045 and a 70% reduction in greenhouse gas emissions from the transportation sector by 2030. This legislative milestone set a binding framework for future governments, influencing policies like the bonus-malus system to meet these targets. It was a strategic move to align with EU climate goals and accelerate the transition to electric mobility, providing a long-term vision for EV incentives.

  4. January 2012
    Introduction of "Super Green Car" Subsidy Program

    In September 2011, the Swedish government approved a subsidy program for electric cars and "super green cars" with CO2 emissions less than 50 g/km, effective from January 2012, with a budget of 200 million kr for up to 5,000 cars, offering 40,000 kr per car. This was a pioneering move to kickstart EV adoption, targeting both BEVs and PHEVs. By July 2014, the program had registered 5,028 cars but ran out of funds, highlighting growing demand. Additional funding was requested in August 2014, and the Riksdagen approved 215 million kr for 2015, including retroactive payments for 2014, showing the government's commitment to sustaining the incentive.