Allowances in Sweden

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Sweden allowance rules

Swedish employers can provide their employees with tax-free daily allowances, as compensation for the increased living expenses, when on a business trip. The tax-free allowances are granted under specific conditions, ensuring that the travel includes at least one overnight stay. The maximum daily allowance, can be seen in the table below:

 

Domestic travels (2024)

Foreign travels (2024)

Full day 

SEK 290 

Full allowance 

Half day

SEK 145

50% of full allowance

Definition of a business trip

Distance: The location of the business trip has to be over 50 kilometres from the employees home or usual workplace.
Maximum amount: Allowances are tax-free up to a maximum, as stated in the table above.

Duration: A minimum of one overnight stay. If the business trip starts from 00.00 to 06.00, it will be considered as an overnight stay.

International business trip

If the business trip takes place abroad, specific rules apply:

Duration: If the business trip starts later than 12.00 it is categorised as half day. Regarding the return day, it will also be considered as a half day, if the trip ends at 19.00 or earlier.

Overnight accommodation: Usually accommodation is provided by the employer. If not, the employer is able to pay a supplement consisting of 50% of a full allowance, tax-free.

Location: If the employee moves between several countries, during one day, the normal amount must be where the employee has stayed the longest. When calculating this, time used for transportation, such as plane and boat, is disregarded.

Long-lasting business trips

For long business trips, it is only possible for employers to pay tax-free allowances for full days, as half days do not qualify for allowances. Maximum daily allowances are divided in two periods. See table below:

After three months 

70% of a full allowance 

After two years 

50% of a full allowance

Free meals

If meals are provided by the employer or their business connections, the meal rate must be reduced accordingly. Deductions are different between domestic and foreign travels, as seen in the table below:

 

Domestic travels 

Foreign travels

Breakfast

20%

15%

Lunch

35%

35%

Dinner 

35%

35%

Documentation and Payment

Employers are responsible for ensuring all conditions for tax-free travel allowances are met and must maintain documentation for the purpose of the trip, the number of business travel days, and the calculation of the allowance.

Want to know more?

If you need further information, we recommend that you read more about allowances on skatteverket’s website. If you are looking for a system that can handle travel allowances for your employees, Acubiz calculate allowance based on the current national rates which we make sure to update automatically.

Read more about how we manage travel allowances.

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