Buying real estate in Sweden

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Sweden is the largest country in Scandinavia and the fourth largest in Europe, bordering Norway and Finland, firmly planted within the Arctic Circle.
Sweden has large numbers of newly built properties, with over 50% of apartment homes being built since 1960 with the majority being mainly rented. Freehold individual properties are largely owner occupied.
Official language is Swedish with a minority understanding Finnish.
Capital gains should not be charged for the sale of privately owned property.

There are no restrictions on Foreign Ownership.

Real Estate Prices in Sweden

Range Varies, for example:
From around £25,000 / $37,000 for a single family home
From around £25,000 / $37,000 for an apartment
From around £40,000 / $60,000 for a villa
From around £50,000 / $75,000 for a bungalow
From around £85,000 / $125,000 for city homes
Country homes vary from around £150,000 / $225,000

Locations to buy real estate in Sweden

Stockholm being Sweden's capital is popular and including the suburbs represents about 20% of Sweden's total population and with the growth of financial and technical companies around Stockholm this will likely grow. It is situated on the Baltic Sea, at the entrance to Lake Malaren and is built on 14 islands with many exceptional waterside buildings.

Gothenburg, Sweden's second largest city on the West Coast of the country is a major port and industrial centre. Malmo, on the south coast is expected to grow significantly over the next few years following the completion of the 16 km bridge and tunnel linking to Copenhagen in Denmark.

Living Costs in Sweden

Sweden has enviable living standards supported by high tech capitalism and extensive welfare benefits.

Buying real estate in Sweden

It is usual for a Real Estate Agent to be used for buying and selling of property in Sweden. They will handle the necessary paperwork and communicate buying and selling prices with all parties involved.
It is not contractual to have your property valued but fairly common for buyers to hire independent surveyors.
When you have satisfied any questions in respect of your purchase a completion date can be agreed through your Real Estate Agent.

It is the responsibility of the buyer to apply for deeds of title within three months of the sale transfer and submit for registration.

Solicitor / Lawyer

A solicitor/lawyer can always be useful; especially in over seas property deals but is not an obligation in Sweden.

Fees

Stamp duty is charged on registration of title deeds and would usually be around 1% of the purchase price. Real Estate Agents fees on average of 3.5% are payable by the seller and it would be wise to check they are registered and insured.

Property Tax

Tax is payable at the annual rate of around 1.5% of the properties regularly assessed value at 75% and will be charged on tax registered foreign ownership. Newly built homes or renovated homes are exempt for at least the first five years with the next five years at a reduction of 50%. Expenses for construction of buildings incur V.A.T at 25%.
Wealth tax is charged at 1.5% of taxable amounts in excess of SEK 800,000 (£56,000 / $83,000).

Mortgages

Lenders in Sweden tend to grant mortgage loans up to 75% of the value of the property usually with fixed rate option periods for repayment. Payment terms are pretty flexible, the average being around 20 years. Tax on the mortgage deeds of 2% on the amount for Swedish based mortgages may be due.

For more information on buying property/real estate in Sweden, please contact the Real Estate Agent or visit the Swedish Governments website:

www.regeringen.se

Our guide will not cover all the legal and full financial information for your Real Estate purchase but should enable you to get an idea into the financial involvement.

For more information on Swedish Property and to arrange your viewing visit:

Swedish Embassy
1501 M. Street, NW
Washington, DC 20005
Tel: (202) 467 2600
Fax: (202) 467 2656

Email: info@gosweden.org

11 Montague Place
London W1h 2AL
Tel: +44 (0)20 7917 6400
Fax: +44 (0)20 7917 6475

Email: embassy@swednet.org.uk