DANIELLA MAYOR NGUYEN
Capital Allowances
Swedish tax regulations regarding deductions for commercial properties are generous - but also challenging to navigate. Leveraging our expertise in both legislation and construction costs, we guide you all the way to the correct tax assessment.
Accurate tax classification reduces costs
The purpose of accurate classification is evident – with increased tax deductions on your investments, you free up capital for more investments and growth opportunities. This is entirely aligned with Swedish legislation, which stipulates that classification of property investments must take place in the case of acquisition, new and extension construction, as well as refurbishment and renovation. As pioneers in capital allowances in the Swedish commercial real estate market, we have long established a specialist team comprising lawyers, economists, and engineers, helping the majority of major real estate companies ensure a correct and optimal deduction assessment to reduce the overall tax cost in the companies. Money today is more valuable than money tomorrow.
New build construction
During new and extension building work, many property owners may feel uncertain about tax classification and what constitutes the capital tax classifications of buildings, plant and machinery, and land facilities from a tax perspective. Correct assessments can, however, result in significant tax savings. By maintaining contact with the finance department and project managers, we ensure a comprehensive understanding of your project from both financial and building technical perspectives. With this as a starting point, we provide you with a detailed, optimized, and correct depreciation basis. You provide us with data, we do the work, you pay the correct tax, and have more money left for other purposes.
Reconstruction and renovation
Tax classifications get more complex when it comes to both large and small renovation and refurbishment projects. In addition to classification between capital expenditure for building and plant and machinery, the regulations also allow for a breakdown into immediately deductible costs (revenue) under the rules for repair and maintenance (Sw. ”reparation och underhåll”) and/or the extended concept of repairs (Sw. ”det utvidgade reparationsbegreppet”). The complexity of the regulations often leads to the risk of making quick and incorrect depreciations, but it also offers opportunities to increase tax deductions through accurate classifications. In addition to major renovations, we regularly help many of our clients classify smaller projects carried out within their property portfolio.
Property Acquisition
When acquiring a property, the acquisition cost should be handled correctly according to tax legislation. Identifying assets for accelerated tax depreciation as plant and machinery in connection with property acquisitions can have a significant impact on the company's tax results. In connection with acquisitions, making a correct breakdown can however be challenging due to a lack of direct cost data. Our analyses benefit from the fact that we have built up a comprehensive cost database based on the thousands of projects we have completed over the years, as well as from our extensive experience and an in-depth understanding of various types of buildings and building components. We are able to provide data for both historical and new property acquisitions and give you accurate and detailed documentation for your particular property.
Questions about capital allowances?
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