Can you deduct furniture purchases from tax when subletting?

Yes, but not as a separate deduction. When you sublet your own home privately, rental income is taxed in the capital income category, and from gross rent a fixed deduction plus actual additional costs for the sublet property are deducted. Furniture purchases are not counted as a separate deduction item on top of the fixed deduction — the fixed deduction is a flat amount intended to cover all costs together, including wear and tear, furniture and running costs, regardless of how much you have actually spent. The rule follows from the Act (2012:978) on subletting of own home and Chapter 42, Section 30 of the Income Tax Act (1999:1229).

How deductions work when subletting your own home

When you sublet your tenant-owned flat (bostadsrätt), villa or owner-occupied flat privately, two deductions apply against rental income:

1. A fixed flat-rate deduction per property and year. The amount is set out in Chapter 42, Section 30 of the Income Tax Act. It is not proportional to the subletting period — you receive the full amount even if you only sublet for a few months. The amount is fixed and does not vary with your actual costs.
2. An additional deduction that depends on the form of tenure. For a tenant-owned flat (bostadsrätt) and owner-occupied flat you can deduct the part of the monthly fee that relates to the sublet part. For a villa you can deduct a proportion of the rental income. For a rental flat (hyresrätt) you can deduct your own rent that you pay for the sublet part.

Any surplus is taxed in the capital income category. A deficit cannot arise — deductions may never exceed rental income.

Why furniture purchases are not deducted separately

The fixed deduction when subletting a private home is a flat amount intended as a combined compensation for all actual costs of the sublet property — furniture wear and tear, electricity, water, broadband and consumables are therefore not covered separately, but should be considered covered by the fixed deduction itself. You therefore cannot first take the fixed deduction and then add the receipt for a new sofa.

This applies regardless of whether the furniture is new or second-hand, and regardless of whether it was purchased specifically for subletting. Depreciation schedules, inventory accounts and direct deductions belong in business activity — not in private subletting under the 2012 Act.

Deducting furniture purchases from tax when subletting — when is it possible?

There is one scenario where furniture purchases can actually be deducted as an actual cost: when subletting is so extensive or professional that it is taxed as business activity instead of capital income. The threshold is determined by Chapter 13, Section 1 of the Income Tax Act (permanent, independent, profit motive) and case law on short-term subletting via platforms.

In business activity, different rules apply: inventory of lower value can be expensed directly under Chapter 18, Section 4 of the Income Tax Act. More expensive furniture is depreciated according to the rules on accounting depreciation in Chapter 18, Section 13 of the same Act.

Table: when do you deduct furniture and when do you not?

Calculation example: furnished tenant-owned flat

Suppose you buy furniture and sublet your tenant-owned flat (bostadsrätt) furnished for twelve months. The monthly fee to the association is 3,500 SEK.

• Rental income: corresponds to annual rent
• Fixed flat-rate deduction: according to Chapter 42, Section 30 ITA
• Fee to association: corresponds to annual fee
• Surplus to be taxed: calculated after deductions
• Tax: calculated on the surplus

The furniture purchase does not appear in the calculation. The fixed flat-rate deduction is a flat amount that is the same regardless of what you have bought — if you had not bought furniture the tax would have been the same, and if you had bought furniture for a higher amount the fixed deduction would not have increased either. The fixed deduction therefore replaces actual costs with a flat-rate amount and is not linked to the specific furniture expenditure.

Checklist: how to handle furniture purchases when subletting

1. Determine the tax classification. Is it private subletting or business activity? Most long-term subletting of your own home is private.
2. Calculate the fixed deduction first. With a fixed flat-rate deduction plus the additional deduction, often the entire rental income is tax-free at normal rent levels.
3. Still keep receipts for the furniture. Needed in case of reclassification to business activity and in disputes over deposits.
4. Separate furniture from building fixtures. White goods that form part of the property are handled separately from moveable property.
5. Regulate the furniture in the rental agreement. Attach an inventory list with condition and value.
6. Price the furnishing in the rent. You can charge reasonable compensation for furniture, and the rent must be fixed at the amount in the agreement.
7. Declare on form K3 (tenant-owned flat) or K5/K7 (small house) in the income tax return.

The central tax rules in Chapter 42 of the Income Tax Act remain fixed — the fixed flat-rate deduction is a flat amount that does not vary with actual costs. Civil law questions such as rent setting, termination and scope of application are regulated separately in the Act that applies to private subletting.

For you considering furnished subletting, this means that the tax rules are stable, but contractual terms may need to be reviewed on an ongoing basis.

Further reading on Bofrid

• Can you deduct furniture purchases from rental income?
• What is the fixed deduction when subletting a home?
• How much tax can you save when you sublet?
• Can you charge a higher deposit for furnished subletting?
• Can you deduct mortgage interest when you sublet?

Frequently asked questions

Can I deduct the furniture purchase in addition to the fixed flat-rate deduction when subletting my tenant-owned flat (bostadsrätt)?

No. When subletting privately under Chapter 42, Section 30 of the Income Tax Act, the fixed flat-rate deduction is a flat amount intended to collectively cover all actual costs of the sublet property, including furniture.

When is subletting classified as business activity so that furniture can be deducted?

The threshold is determined by Chapter 13, Section 1 of the Income Tax Act. Extensive short-term subletting with hotel-like services, multiple properties or clear profit motive can be reclassified. An overall assessment is made in each individual case.

Can I charge extra for furniture in the rent without tax consequences?

You can charge reasonable compensation for furniture. The compensation is taxed as rental income — but normally falls within the fixed flat-rate deduction together with other rental income. The rent must be fixed at the amount in the agreement.

What happens if the furniture is damaged by the tenant — can I deduct the replacement purchase?

When subletting privately, the replacement purchase cannot be deducted separately, because the fixed deduction is a flat amount intended to cover all costs collectively. However, you can claim against the tenant under the duty of care and may make a deduction from the deposit for proven damage beyond normal wear and tear.

This article is general information and does not constitute legal or tax advice in the individual case.