How does subletting or renting out part of my home work?

For co-ops ("bostadsrätter"), you need association approval to sublet for valid reasons like working elsewhere, studies, or trial cohabitation ("provboende") – usually time-limited. Without approval, you risk forfeiture ("förverkande"). For renting out a room in your own home while living there, you generally don't need permission. Rental income is taxable as capital income ("kapitalinkomst") after deductions (40,000 SEK standard deduction ("schablonavdrag") plus 20% of rent for room rental). Banks view extra income positively but are cautious with counting it toward loan qualification.