Short-term rentals and vacation homes – agreements, tax, and regulations 2026
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Fact-checked: October 1, 2026 · Swedish rental law and taxation
"Short-term rental" is not a specific legal contract category that automatically applies up to a certain number of months. The applicable rules depend on the property, the purpose of the lease, who is renting it out, and whether the rental resembles hotel operations.
Which legal framework applies to short-term rentals?
Start by asking why the property is being rented out.
Recreational or holiday purposes
The Private Rental Act (2026:772) does not apply if the lease is for recreational purposes. A rental of a summer cottage during vacation weeks should therefore not automatically be treated as a private rental under the 2026 act.
Temporary accommodation as a primary residence
If a private individual or an estate rents out a privately owned property for the tenant to use as a residence, the Private Rental Act may apply even if the contract is time-limited, provided that the other criteria of the act are met.
Rental property (hyresrätt) rented out temporarily
The Private Rental Act does not apply when the landlord holds the property as a tenant-in-chief (hyresrätt). In such cases, Chapter 12 of the Land Code and the rules regarding subletting are the governing factors.
Hotel-like operations
If the rental is frequent, short-term, and combined with services in a manner similar to hotel operations, other tax and VAT rules may apply. Assess the actual nature of the activity, not just what the contract is called.
What should a short-term/recreational contract regulate?
- Exact dates and times for moving in and out.
- Which individuals are permitted to use the property.
- Rent and payment terms.
- Cleaning, bed linen, and other services.
- Electricity, water, firewood, internet, and other costs.
- Security deposit and refund terms.
- Damages, inventory, and keys.
- Pets, smoking, and rules of conduct.
- Cancellation and potential early termination.
- What happens if the property cannot be used.
For furnished properties, an inventory list and inspection report are particularly valuable.
Do fixed-term contracts expire automatically?
That depends on the applicable legal framework. For standard rentals under Chapter 12 of the Land Code, there are different rules regarding when fixed-term contracts must be terminated, depending on the duration of the contract and whether it concerns housing or commercial premises.
If the new Private Rental Act applies, a fixed-term contract expires at the end of the rental period, but the tenant always has the right to terminate the contract so that it ends at the turn of a month, no earlier than three months from the notice of termination.
For recreational rentals, the contract should therefore be drafted based on the correct legal framework rather than using a general "short-term rule."
Security of tenure (Besittningsskydd)
Security of tenure also depends on the nature of the lease. A vacation home rented under standard rental rules may, according to the Swedish courts, only gain security of tenure after more than nine months of continuous rental. Rentals covered by the Private Rental Act, however, do not have the same right to extension.
How is private rental income taxed?
When renting out a private residence, any surplus is normally taxed as capital income. The Swedish Tax Agency (Skatteverket) states that you are usually entitled to a standard deduction of a maximum of 40,000 SEK per property per year, plus additional deductions depending on the type of property.
For detached houses and separately owned apartments (ägarlägenhet), you are also normally entitled to deduct 20 percent of the rental income. For private tenant-owned apartments (bostadsrätt) and rental properties (hyresrätt), specific deductions linked to the fee or rent attributable to the subletting apply instead.
Can the rental become subject to VAT?
Standard rental of a private residence is generally not subject to VAT. However, the Swedish Tax Agency states that VAT may apply if the rental resembles hotel operations. This can, for example, involve recurring short stays and services typical of lodging businesses.
Checklist before listing on Airbnb or similar platforms
- Check that you have the right to rent out – especially for tenant-owned apartments (bostadsrätt) and rental properties (hyresrätt).
- Determine whether the lease is for residential or recreational purposes.
- Choose the correct contract template and legal framework.
- Document the condition of the property and the inventory.
- Clearly define the deposit and cancellation terms.
- Calculate tax according to the Swedish Tax Agency's rules.
- Assess whether the activity is beginning to resemble hotel operations and if VAT might apply.
Rental Agreement for Recreational Property – Short-term contract Word/PDF costs 49 SEK. Adapt the contract to the actual purpose of the lease and the relevant legislation.
