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European Alternative Fuels Observatory

Sweden

Incentives and Legislation

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 and let us know.

Ownership tax benefits

In Sweden, vehicles are subject to an annual circulation tax based on weight and CO2 emissions per km. ‘ Super green’  cars are exempt for the first 5 years after registration. This corresponds, on average, to an annual tax relief of about SEK 1 760 (EUR 170).

Company tax benefits

In Sweden, where cars are not subject to registration taxes, the application of this approach would favour internal combustion engine (ICE) over electric cars, given their comparatively low purchase price. Swedish legislation allows reduction of the value of the benefit represented by the private use of company cars if they are electric and therefore reduces the amount of income taxes that need to be paid on it. Thanks to this, the monthly cost of leasing an electric car is lower than that of an equivalent ICE for the employee, even if the car is still more expensive for the company (Wikström, 2018). In Sweden, this measure, combined with complementary activities to stimulate response from corporate social responsibility programmes, proved to be effective in stimulating the adoption of electric cars. In November 2017, company cars accounted for approximately 70 % of the new electric car sales (Wikström, 2018).

Since July 2021, luxury car supplement is removed, company cars costing more than SEK 650.000 (EUR 63 000) will be cheaper to operate.

Purchase subsidies

‘Climate bonus’  (Klimatbonus). This means that cars and light trucks/buses newly registered from 1 July 2018 having a CO2 emission of maximum 60 g/km (NEDC value) received a bonus of up to SEK 60 000 (BEVs), depending on the CO2 emission. From 1 January 2020 the CO2 limit for new registrations to receive a climate bonus has been increased to 70 g/km measured according to WLTP. Compressed natural gas (CNG) cars and light trucks/buses will receive a bonus of SEK 10 000 independent of the CO2 emission. For EVs (BEV) with zero CO2 emission the bonus is SEK 60,000 and plug-in hybrids (PHEVs) with CO2 emission of 70 g/km receive a bonus of SEK 10 020. The climate bonus must not exceed 25 % of the new car price.

At the same time, the limit for climate bonus is lowered from 70 to 60 g. The bonus amount for a car that emits 1 g CO2 amounts to SEK 45 000. Thereafter, the bonus is reduced by SEK 583 per g up to the upper limit of 60 g, which gives a bonus of SEK 10 000.
From 1 April 2021, the limit will also be lowered for when an increased vehicle tax is levied from 95 g/ km to 90 g/km. Vehicles that emit 90-130 g/km receive a vehicle tax of SEK 107/km and then SEK 132/g for the emission that exceeds 130 g. Vehicles that emit 60-90 g /km do not receive a bonus or suffer a higher tax. 2021

Electric buses and trucks: Public transportation authorities buying new electric buses can receive a premium of maximum 20 % of the purchase price of the electric bus. The premium must not be higher than the difference in price of the electric bus and that of the corresponding diesel bus. Plug-in hybrid buses receive half of the premium amount. Private companies buying new electric buses can receive a premium of 40 % on the difference between the price of the electric bus and corresponding diesel bus. Buyers of new electric trucks will also be eligible to receive a premium. The details for this premium have not yet been decided upon (February 2020).

 

Other financial benefits

Reduction in company car taxation: for electric and PHEVs, the taxable value of the car for the purposes of calculating the benefit-in-kind of a company car under personal income tax is reduced two steps. Firstly, the benefit value is reduced to the benefit value of a comparable petrol or diesel car. Secondly the calculated benefit value is reduced by 40 % (maximum SEK 10 000). The first reduction is permanent and not time-limited. The second step with a 40 % reduction is valid up to and including 2020, unless there is be a political decision to prolong it.

Local incentives

Municipalities around the country will introduce environmental zones in three different steps from 2020.

AF infrastructure incentives

Projects from Klimatklivet assigned to EVSE for 2018-20 (Wikström, 2018). For 2018-20, additional SEK 700 million (EUR 67 million) have been assigned and the budget proposal for 2018 includes provisions to increase this amount. Implementation of a support scheme for private charging (Government of Sweden, 2017c). Between 2018 and 2020, SEK 90 million (EUR 8,7 million) will be annually allocated to support home chargers with up to 50 % or SEK 10 000 (EUR 960) for hardware and installation costs.