Renting out an Attefallshus: Rules and Tax Implications 2024

Building an Attefallshus has become a popular way to increase living space, either for personal use or to generate extra income through rentals. If you're considering renting out your Attefallshus, it's crucial to be aware of the specific rules and laws governing this type of rental.

This guide provides a comprehensive overview of the renting out Attefallshus rules, tax implications, and other important aspects to consider in 2024.

Building Permits and Notifications for Attefallshus

One of the first steps is understanding what's required to build an Attefallshus. Attefallshus, or complementary residential units, can be erected without a building permit according to the Planning and Building Act, but a building notification to the municipality is always required. The municipality verifies that the measure complies with the requirements of the detailed development plan or area regulations.

Key Regulations to Follow:

• Size: Attefallshus can have a building area of up to 30 square meters. However, there are exceptions for Attefallshus that serve as complementary residential units, where one can build an Attefallshus of up to 30 sqm as a complementary building, or multiple Attefallshus whose total area does not exceed 30 sqm.
• Placement: The house must be placed at least 4.5 meters from the property line, unless the municipality approves otherwise. If you wish to place the Attefallshus closer to the boundary, neighbor consent is required.
• Use: An Attefallshus can be used as a permanent residence, guest house, office, studio, or for other similar purposes. When rented out, it counts as a permanent residence.

Building Notification and Technical Consultation

Before starting construction, you must submit a building notification to your municipality. This notification should describe your project, including plans and technical solutions. The municipality will review your notification and schedule a technical consultation. After an approved notification and a final inspection, you can begin construction.

Taxes on Renting Out an Attefallshus

Renting out an Attefallshus can provide a welcome extra income, but understanding the tax regulations is vital. To avoid issues with the Swedish Tax Agency (Skatteverket), it's important to declare income correctly.

Main Taxation Rules:

• Deductible Amount: For renting out private residences, including Attefallshus, there is a general tax-free allowance. In 2024, this allowance is SEK 40,000 per year. This means you don't pay tax on the first SEK 40,000 earned from the rental.
• Taxation Above the Allowance: If your rental income exceeds SEK 40,000, the excess amount is taxed at 30 percent. This applies whether you rent out furnished or unfurnished, and regardless of whether it's a short-term or long-term rental.
• Simplified Rules Option: To simplify the tax declaration, you can opt for simplified rules. In this case, you deduct a standard amount for expenses instead of itemizing all actual costs. This standard deduction is 40% of the rental income, but you cannot deduct more than SEK 40,000 in total. This means you are taxed on 60% of the rental income if you use the simplified rule and the income exceeds the allowance. It's important to note that you cannot combine the simplified rule with deducting actual expenses.

Declaring Rental Income

All rental income, even amounts below the tax-free allowance, must be reported in your income tax return. You will report the income on form K21 (Income from Capital) or K22 (Income from Business Activities), depending on whether the rental is considered a temporary side income or a more permanent activity. For most people renting out an Attefallshus, it will be classified as income from capital.

Rental Agreements and Practical Tips

A clear and legally sound rental agreement is essential to avoid misunderstandings and disputes with your tenant. When dealing with renting out Attefallshus rules, it's important that the agreement covers all necessary points.

What a Rental Agreement Should Include:

• Party Details: Full names, personal identification numbers, and addresses for both you as the landlord and the tenant.
• Rented Property: A clear description of the Attefallshus, including the address and any shared spaces.
• Rental Period: Start and end dates for the rental. Specify if it's a fixed-term or indefinite-term rental.
• Rent Amount and Payment Terms: The amount of rent, when it's due, and the bank account for payment.
• Security Deposit: If a deposit is required, its amount and the conditions for its return.
• Notice Period: Swedish law dictates notice periods, but these can sometimes be adjusted in the agreement, especially for fixed-term leases.
• Rules for Pets and Smoking: Clear stipulations on what is permitted.
• Maintenance Responsibilities: Who is responsible for the maintenance of the house and garden.

Practical Tips for Landlords:

• Insurance: Review your home insurance policy and consider adding an extension for rentals. Also, check if the tenant needs their own home insurance.
• Inspection: Conduct a thorough inspection of the Attefallshus with the tenant upon move-in and move-out to document its condition and any damages.
• Regular Check-ins: Even if you're renting it out, maintaining communication with the tenant and conducting periodic checks can help ensure the property is well-maintained.

Frequently Asked Questions

### Can I sublet my Attefallshus?

Yes, you can sublet your Attefallshus, but it usually requires the tenant's permission. Subletting your entire dwelling without your landlord's consent can lead to losing your right to rent.

### What's the difference between renting out a private residence and a business property?

The primary difference lies in how the income is taxed. Renting out an Attefallshus that you own and live in (or use as a permanent residence) is typically considered a private residence rental. However, if you own multiple properties and rent them out as part of a business operation, it might be classified as business income. The tax rules differ.

### Do I need a building permit to rent out my Attefallshus?

No, you do not need a separate building permit to rent out an Attefallshus. However, a building notification to the municipality is required to build the Attefallshus itself. The act of renting it out does not require an additional building permit.

### How much tax do I pay if I rent out for SEK 50,000?

If you rent out for SEK 50,000 and use the simplified rule, you can deduct 40% (SEK 20,000), leaving a taxable income of SEK 30,000. If you don't use the simplified rule and have actual deductible expenses, you can deduct up to SEK 40,000. The excess amount (SEK 50,000 - SEK 40,000 = SEK 10,000) is taxed at 30%, resulting in SEK 3,000 in tax. It's therefore important to calculate which option is most beneficial.

### What are the rules for short-term rentals of Attefallshus?

The tax rules for short-term rentals (e.g., via Airbnb) are the same as for longer rentals. You have a tax-free allowance of SEK 40,000 per year. Amounts exceeding this are taxed at 30%. It's important to keep track of all income, including from short-term rentals, to file your taxes correctly.