is the largest of the Nordic countries with a population of about 9.3
million that is quite spread out. This peace-loving country has not been
involved in any major wars for more than 200 years and has a
parliamentary democracy and a constitutional monarchy. The combination
of Sweden's stability with the high standard of living means that the
country is very multi-cultural and all this diverse population live
together in relative harmony. There are no legal restrictions on
foreigners buying property in
Privacy is well
respected in Sweden and famous people who have visited have been
pleasantly surprised to find that they don't get bothered.
the main language but most people speak English making things easy for
visitors and expats. Property prices are surprisingly reasonable too.
Though, like most of the world, the property boom in
Sweden finished in
2008, there are still some great bargains to be had. The average price
for a property in Sweden is 153,374 GBP.
Sweden and the EU including links to Swedish government sites and
Property purchase process:
There are no legal restrictions on foreigners buying property in
property process is swift and easy. Initially it involves the
negotiation of a purchase agreement. At the same time, deed verification
and a property survey occurs. Once an agreement is reached and the deed
is validated and the property has been ‘cleared’ by the surveyor. A
purchase agreement/contract is signed by the buyer and seller. The
purchaser then pays a deposit ranging from 2% to 10% of the purchase
the actual transfer of the property the parties, or their
representatives meet and carry out apportionment of service charges,
rent, interest, and insurance premiums, formalize the purchaser's
assumption of any loan related to the property (if so agreed) and the
purchaser will pay the net purchase price in cash.
this stage the vendor will issue a bill of sale stating that the
transfer of title to the property has been completed and that the
purchase price has been paid.
transaction concludes when the buyer forwards the bill of sale to the
Land Registration Authority and the transaction is made public and the
transfer is acknowledged by the state.
Sweden, the purchase of a residential property usually proceeds with
only a broker’s or an agent’s services and does not necessarily involve
the services of a lawyer, but
as a foreigner it
would be advisable, particularly if you don’t speak the language.
takes an average of two days to complete the sole procedure needed to
register a property in Sweden.
Stamp Duty and Registration fee:
Buyers pay the stamp duty (1.5% of value) together with the registration
fee of SEK825 (€88.50).
Agent's fee: Estate agent's fee is paid by the vendor and is
generally negotiable between 3% and 5%.
Non-residents are liable to tax on their Swedish-sourced income. Married
couples are taxed separately.
When computing the taxable income,
actually incurred annual costs such as property tax, insurance,
maintenance, water, electricity, some less extensive repairs of the
property and management fees are all deductible. Depreciation is also
deductible when calculating business but not capital income and annual
depreciation rate for buildings is 2%.
Rental income from private property
is considered to be income from capital, and taxed at a flat rate of
30%. Private property is defined by law as a property that the owners
are using or planning to use as their residence.
Business income is defined as income derived from an independent,
commercial (yrkesmässig) and profit-making activity. If these
three conditions are not met, then income earned is considered as either
employment income, or income from capital.
Rental income from a property that the owners do not intend to use as
their residence will be considered business income.
Municipal Taxes; Properties with residential buildings are subject to a
municipal fee, which formally is a state property tax. For properties
with one-or-two family homes, municipal property fee is levied at either
the 0.75% of the property’s assessed value or SEK6,000 (€641), whichever
is higher. Property owners of apartment buildings (hyreshus)
should pay either SEK1,200 (€128) or 0.5% property tax on the assessed
value for the residential part of the property, whichever is higher.
This fee is deductible when calculating business income tax.
the property is less than ten years old, the municipal property fee will
be lower. New built buildings are exempt from property fee up to the
fifth year. Subsequent years up to the tenth year, the fee is reduced by
Property tax is levied at 1% of the assessed value for commercial
purposes and 0.5% for industrial properties.
Foreigners are able to obtain a mortgage against a property in
Generally, buyers can borrow up to 75 per cent of the property’s value
on fixed rates over a period of approximately 20 years.