Improved tax rules for forest owners
On 1 April 2026, new tax rules for forest owners entered into force. The changes aim to simplify the regulatory framework and provide better and more predictable financial conditions in situations such as land encroachment and nature conservation agreements. At the same time, the rules were aligned with EU law.
The new provisions include several changes that affect taxation. Here are some of the most important:
New compensation fund for conservation land
The new fund provides clearer and more favourable tax conditions for nature conservation set‑asides and compulsory land purchases. The reinvestment period is extended to ten years, giving forest owners better opportunities to find and acquire replacement land and plan their finances.
New nature conservation account
Forest owners may deposit compensation from nature conservation agreements lasting longer than five years into a dedicated nature conservation account. This allows taxation to be spread over a ten‑year period.
Abolished tax on interest from forest accounts
The withholding tax on interest earned in forest, forest damage and copyright accounts has been removed. Instead, the interest is taxed upon withdrawal or payment.
Extended forest deduction
The forest deduction is expanded to include properties within the European Economic Area (EEA). This provides greater flexibility for those who own forest land in other countries.
Stay Informed
Do you have questions about how the rules apply in your specific situation? The Swedish Tax Agency provides updated guidance.
New tax rules for forest owners at the Swedish Tax Agency (in Swedish)