Some employees might need to move to a new place of residence due to work and still keep their first residence. This is called dual residence.
To receive a tax deduction for increased living expenses due to dual residence, it is required:
- that the distance between the place of work and the place of residence is at least 50 kilometres;
- that the employee has stayed overnight at the new residence at the place of work.
Deductions for meals and small expenses
An employer can reimburse the employee with dual residence for meals, small expenses and accommodation at his second place of residence (at the place of work).
An employer can provide these tax-free reimbursements for meals and small expenses for the first month the employee is staying at the place of work.
These reimbursements for meals and small expenses can be tax-free up to a certain amount. This can either be calculated based on the actual increase in expenses or with a standard amount.
In case you use the standard amounts, these are the maximum tax-free amounts:
|Location of the place of work||Maximum tax-free amount during the first month|
|Sweden||SEK 72 per full day|
|Abroad||30% of the normal per diem per full day (see section on per diems)|
As with per diems, you have to make deductions to the maximum tax-free reimbursement by the value of any free meals you received.
Deductions for accommodation expenses
In the case of dual residence, actual housing expenses at the second place of residence (at the place of work) can be tax-exempt. You must be able to show the actual expenses incurred.
If the family home has been moved to the place of residence at the place of work, you can make a deduction for the home at the old place of residence. You are not entitled to this deduction if the old place of residence is rented out.
An employer can provide these tax-free reimbursements for accommodation for a maximum of 2 years for a single individual and a maximum of 5 years for married and cohabiting individuals.
Deductions for trips home
An employer can also provide tax-free reimbursements to employees for their travel expenses when going home if the distance is at least 50 kilometres. This is applicable for trips home within the EU/EEA area or Switzerland.
Single individuals can have tax-free reimbursements as long as they are entitled to tax exemptions for increased living expenses for dual residence. If the employee rents out the old place of residence, the reimbursements for trips home are not tax-free.
If the employee is married or cohabiting, the tax exemption for home trips is applicable as long as they live in a place other than where their family lives. This applies even if the conditions for deductions for increased living expenses for dual residence are not met.
The reimbursements can be tax-exempt up to a maximum amount and for a maximum of one round-trip home journey per week. The maximum tax-free amount is based on the cheapest way to travel, except for when you are travelling by train or plane. For trains, the maximum tax-free amount is based on your actual costs. For flights, it is based on the cost of the cheapest flight option for that route at that time.
If public transport is not an option, an employer can reimburse an employee tax-free for car costs up to SEK 18.50 per 10 km. If the employee uses a car provided by the employer (or your relative’s or partner’s employer), the tax-free amount is SEK 6.50 per 10 km for diesel cars and SEK 9.50 if the car is powered by another fuel, electric or plug-in hybrid.