Sweden takes another step to strengthen R&D tax incentives: indexation of the R&D deduction cap
Sweden has taken another positive step in the ongoing reform of its R&D tax incentive framework. In the Legislative Council referral “Indexering av taket i FoU avdraget”, the Government proposes that the cap for the R&D deduction should be indexed and linked to the development of the Swedish income base amount, inkomstbasbelopp. This proposal may […]
Sweden moves forward with a new R&D tax incentive, a long-awaited step for innovation
Sweden has taken an important step toward strengthening its R&D tax incentive framework. In the Legislative Council referral “Ett nytt skatteincitament för forskning och utveckling”, the Government proposes a new tax incentive for research and development in the form of an enhanced cost deduction within business taxation, in line with the proposition from the R&D committee. This is welcome news for companies investing in innovation in Sweden. For a long time, there has been a need for stronger and more competitive R&D incentives. […]
New tax incentives for research and development
Two proposals have been presented The government appointed investigator recently presented the final report SOU 2026:1, which contains two alternatives for new tax incentives for research and development (R&D). The aim is to make it more attractive for companies to conduct R&D activities in Sweden and thereby stimulate innovation and technological development. The alternative that […]
The Tax Incentive You’re Missing: How Leyton Sweden Helps Pharma Unlock Critical R&D Funding
Sweden has long been recognized as one of the most innovative nations in the world, with a pharmaceutical sector that delivers global impact well beyond its scale. According to Statistics Sweden, the industry invested 13,6 billion SEK of its own funds into research in 2023, with a total investment of 18,1 billion SEK when including […]
Turning Sustainability Innovation into R&D Tax Savings
In Sweden, companies that engage in sustainability can benefit from tax deductions under the R&D tax relief scheme (known as forskningsavdraget or FoU-avdraget). To qualify, a company must be engaged in research and/or development of a new or significantly improved product, service, or process, with the goal of generating new knowledge, improving existing technologies, or […]
Think R&D Is Just for Tech? Swedish Manufacturers, Think Again
Innovation on the Factory Floor: R&D Tax Relief for Sweden’s Manufacturers Sweden’s automotive and engineering companies are often at the forefront of practical innovation – from fine-tuning production lines to prototyping new components. Still, a common misconception persists that “real” research and development only happens in high-tech labs filled with experts in white lab coats, […]
From Engineering to R&D: When Product Development Becomes Eligible for Tax Relief
R&D – A Broad Term in the Tax Administration’s Eyes Many companies develop new products, services, or work methods without realising that they may be entitled to a tax deduction for research and development – the so-called research deduction, forskningsavdraget. Although the scheme has been in place for several years, few companies take full advantage […]
What Counts as R&D in Medtech? Turning Documentation into a Strategic Asset
The Challenge of Defining R&D in a Regulated Sector In medtech and biotech, innovation is complex by nature. It spans disciplines, from device design and clinical validation to regulatory strategy and software development. But when it comes to identifying which activities actually qualify as research and development under the Swedish R&D tax incentive, many companies […]
Turning Code into Cash: How Software and AI Companies Can Leverage R&D Tax Incentives
Can software development qualify for R&D tax relief in Sweden? Yes—it absolutely can! You don’t need a white lab coat or a microscope to qualify for the R&D tax deduction, forskningavdraget. The Swedish R&D tax relief scheme is designed to support a wide spectrum of innovation-driven activities—from advanced engineering and physical product development to cutting-edge […]
Swedish R&D investigation report
A wake-up call for companies claiming R&D tax relief with no specific approach The SOU 2025:3 report, released on January 15, 2025, is the conclusion of a one-year investigation into Sweden’s R&D tax relief framework, revealing critical risks and pressing challenges that demand attention from companies currently claiming the deduction. While the report offers promising […]