Sweden's New Dividend Rules for 2026:

Sweden has approved new 3:12 tax regulations for dividends, set to take effect in the 2026 fiscal year, which will significantly impact owners of limited companies. These updated regulations replace the current dual-system, offering a choice between a main rule and a simplification rule, with a single, unified method for calculating dividend allowance. Under the new framework, each company receives a standard base amount of 4 income-based amounts (IBB), corresponding to SEK 322,400 for 2026. This base amount is then distributed among shareholders proportionally to their ownership. The calculation for additional salary-based dividend allowance has also been revised for companies with employees. It is now determined by taking half of the company's total salary base after deducting 8 IBB (SEK 644,800). Although intended to simplify the process, these changes reduce strategic flexibility. Many sole proprietors with salaries near the state tax threshold will no longer qualify for any salary-based allowance. Furthermore, in companies with multiple partners, both the base amount and any salary-based allowance must be shared, potentially reducing the dividend amount available to each individual owner.