New Swedish Dividend Tax Regulation Proposed for 2026

The Swedish government has unveiled proposed changes to the 3:12 dividend tax regulations, set to come into effect on January 1, 2026, pending approval during the fall budget negotiations. The new regulations aim to simplify dividend calculations by establishing a higher base amount of four income base amounts (IBB), which will total 322,400 SEK for the year. This represents an increase from the current 2.75 IBB, designed to create a larger dividend capacity for many small business owners, without factoring in wages.

However, experts warn that these changes could disadvantage certain business owners, particularly those with multiple shareholders or who own several companies. According to tax expert Anders Nilsson, while the simplification could benefit many, those who share ownership will need to divide the base amount and any additional wage-based dividend space, potentially reducing individual benefits. Moreover, owners of multiple companies will face a total dividend cap of 4 IBB across all their entities, which may limit their ability to optimize dividend distributions.

Business owners are being encouraged to assess how these changes may impact their operations and consider adjusting their business structures accordingly, such as establishing holding companies or closing inactive subsidiaries before year-end to maximize their benefits under the new rules. The government is expected to finalize the proposal, and dividends declared in 2026 will be reported in spring 2027.