Regulatory changes for the Swedish maritime sector

This spring, the Swedish Government presented several regulatory changes for the maritime sector. The changes concern the abolition of stamp duty for vessels, the introduction of a new bareboat register, and improved rules for Swedish tonnage taxation. This article highlights the main changes.

Abolition of stamp duty on ship mortgages

On 20 May, the Swedish Parliament voted in favour of the Government’s proposal to abolish stamp duty on ship mortgages upon registration. During the legislative process, several consultation bodies endorsed the proposal and emphasized the importance of this measure for strengthening the competitiveness of Swedish shipping and increasing the number of Swedish-flagged vessels. The previous stamp duty was essentially unique to Sweden and was considered an obstacle to using the Swedish flag. It is too early to fully evaluate the effects of the abolition of stamp duty, but we are already seeing an increased willingness among our clients to consider the Swedish flag.

Proposal for a new bareboat register

On 3 June, the Government published a bill on Simplified chartering and leasing of ships (Sw. Förenklad in- och uthyrning av skepp).  The bill proposes, among other things, the following:

• new, clearer rules for chartering and managing chartered foreign vessels in the Swedish ship register; and
• the addition of a bareboat register to the Swedish ship register, with the aim of improving opportunities for shipping companies to organize their operations and finance new vessels.

The consultation bodies have generally responded positively to the proposed changes, which are expected to increase commercial flexibility and strengthen the competitive position of the affected shipping companies. It is also pointed out that bareboat charters can be an attractive option from a ship financing perspective, as the financier can act as the owner.

The legislative changes are proposed to enter into force on 1 February 2026, and the Parliament’s decision is expected on 22 October.

Proposed improvements to tonnage tax rules

On 24 June, the Government published a memorandum on Improved rules for Swedish tonnage taxation (Sw. Förbättrade regler för svensk tonnagebeskattning), proposing enhancements to the tonnage tax system. Setterwalls has previously contributed to the consultation process and addressed the subject in an earlier article, Tailwind for Swedish shipping – proposals for the development of tonnage tax rules – Setterwalls (Sw. Medvind för svensk Sjöfart – förslag till utveckling av tonnageskattereglerna).

To date, a number of consultation bodies have submitted their responses, including the Swedish Shipowners’ Association (Sw. Föreningen Svensk Sjöfart), which welcomes the proposals but suggests further extensions.

The proposed changes to the tonnage tax system include, among other things:

• an extension of the scope of the tonnage tax system to include certain specialised shipping operations;
• revised conditions for when a vessel is to be considered qualified; and
• a lower gross tonnage requirement.

Sweden introduced the current tonnage tax system on 1 January 2017. Tonnage tax is a voluntary taxation method available to companies engaged in so-called qualified shipping activities (Sw. kvalificerad rederiverksamhet). Under this method, income from qualified shipping activities is calculated on a flat-rate basis based on the net tonnage of the ships, regardless of the ships’ income and expenses, and the flat-rate income is taxed at the applicable tax rate.

The legislative amendments are proposed to enter into force on 20 July 2026, with initial application for tax years beginning after 31 December 2026.

How will the changes impact Swedish shipping?

These legislative changes represent a welcome modernization of parts of the regulatory framework for Swedish shipping, with a clear focus on increasing the sector’s flexibility and competitiveness. We are already seeing several new trends, including an increase in the number of vessels registered under the Swedish flag, where we have also acted as legal advisors in connection with the Stena Group’s reflagging of the Suezmax vessel Stena Sunrise.

In summary, the regulatory changes mean that:

• a significant cost is eliminated through the abolition of stamp duty;
• additional forms of financing may become more attractive to both shipping companies and financiers through the new bareboat register; and
• the expansion of the tonnage tax system may enable and encourage more parties to join the system.

Setterwalls has broad expertise in all maritime and transport law matters, including the sale and financing of vessels, the negotiation of commercial transport agreements, and maritime litigation and arbitration. We are closely following the ongoing legislative work and market developments in the Swedish maritime sector. If you or your company have any questions about maritime or transport law matters or the ongoing legislative work, please do not hesitate to contact us.