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European Alternative Fuels Observatory

Sweden

Incentives and Legislation

The incentives and legislations section is updated for 2025, published on 18th April 2025, representing the situation as of that date. Major changes of incentives and polices are updated on a rolling basis from that date onwards.

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 bonus.
  • Scrapping premium of SEK 10,000 for individuals scrapping a car ≥ 15 years old and replacing it with a BEV (buy or lease).
  • Managed by the Swedish National Board of Housing; valid through end of 2025.
Registration Tax Benefits

No BEV-specific registration tax benefit, as Sweden does not impose a registration tax. All vehicles pay uniform administrative registration fees (e.g. SEK 1,240).

Ownership / Circulation Tax Benefits
  • BEVs pay SEK 360/year (standard base rate), avoiding the malus surcharge (CO₂-based tax for high-emission vehicles for 3 years).
  • PHEVs also benefit but pay more than BEVs.
Company Tax Benefits

From 2025, BEVs used as company cars benefit from:

  • SEK 350,000 discount on taxable benefit value (max 50% of vehicle price)
  • Additional 40% reduction on remaining amount (max SEK 14,000/year).
  • Tax-free workplace charging valid until June 2026.
VAT Benefits
  • No VAT reduction for BEVs.
  • Businesses may deduct VAT for commercial use (leasing or purchase), same as other vehicles.
Other Financial Benefits
  • BEVs indirectly benefit from high fossil fuel taxes and tighter reduction obligations for fuel suppliers (effective July 2025).
  • A kilometer-based tax is under discussion for 2030.
Local Incentives
  • Environmental zones restrict polluting vehicles in cities.
  • Low electricity tax on charging.
  • Municipalities support BEVs via local charging grants and access rules.
AF Infrastructure Incentives
  • Ladda Bilen program covers up to 50% of charging point installation costs (private, residential, workplace).
  • In 2025, three new funding streams will support heavy vehicle charging (service depots, public corridors, Ten-T expansion).
Announced policy changes (effective later in 2025 and after)
  • No bonus-malus bonuses reinstated.
  • Discussion ongoing on pay-per-kilometre road tax post-2030.
  • Climate policy increasingly favors indirect BEV support through fossil disincentives.
Institutions involved in Incentives

Ministry of Climate and Enterprise, Swedish Energy Agency, Boverket, Municipal Governments

Interesting links

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Inform about incentive

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.