Sweden Real Estate: A Guide to Renting or Buying Property as a Foreigner

Sweden offers a high quality of life, strong economy, and transparent real estate market, making it an attractive destination for expatriates and investors. Unlike many other European countries, there are no legal restrictions on foreign property ownership in Sweden. This guide covers everything you need to know about renting and buying property as a foreigner, including costs, legal considerations, and frequently asked questions.

Renting Property in Sweden

1. Finding a Rental Property

Foreigners can find rental properties through:

• Online Platforms:
  • Hemnet
  • Blocket
  • Bostadssurf
  • Qasa
• Real Estate Agencies: Svensk Fastighetsförmedling, Fastighetsbyrån.
• Company Housing Assistance: Many large employers help expatriates secure housing.

2. Types of Rental Contracts

• First-Hand Contracts (Förstahandskontrakt): Direct lease agreements with landlords. These are in high demand, especially in major cities.
• Second-Hand Rentals (Andrahandskontrakt): A more common option for foreigners, where tenants sublet their apartments to others.

3. Rental Agreements

A Swedish rental contract typically includes:

• Lease Duration: Usually 12 months, but shorter terms are possible.
• Security Deposit: Equivalent to 1-3 months’ rent.
• Utilities: Often not included in the rent.
• Termination Notice: Typically 3 months’ notice required.

4. Rental Costs

Rental prices vary by location and type of housing:

• Stockholm: SEK 12,000–25,000/month (€1,000–2,200).
• Gothenburg & Malmö: SEK 8,000–18,000/month (€700–1,600).
• Smaller cities (Uppsala, Lund, Västerås, etc.): SEK 6,000–12,000/month (€500–1,000).

Buying Property in Sweden as a Foreigner

1. Can Foreigners Buy Property in Sweden?

Yes! There are no restrictions on foreigners buying property in Sweden. You do not need a residence permit or Swedish citizenship to buy real estate.

2. Steps to Buying Property in Sweden

A. Search for a Property

Foreigners can search for homes on:

• Hemnet (Sweden’s largest real estate site).
• Booli.
• Blocket.
• Work with a licensed real estate agent (mäklare).

B. Arrange Financing

• Swedish banks offer mortgages to foreigners, but you may need a Swedish personal identity number (Personnummer).
• Non-residents may need to provide a higher down payment (20–30%).
• Mortgage interest rates (2024): Typically 3–5%.

C. Make an Offer (Budgivning)

• Offers are non-binding until the purchase contract is signed.
• The seller can accept the highest bid or any preferred offer.

D. Sign the Contract

• Once the seller accepts an offer, both parties sign a purchase agreement (Köpekontrakt).
• A 10% deposit is usually required.

E. Finalize the Sale & Register Ownership

• The remaining amount is paid at closing, and ownership is registered with the Swedish Land Registry (Lantmäteriet).
• You will also need to pay property transfer tax (Stamp Duty) if applicable.

Sweden Real Estate: Costs of Buying Property

1. Additional Costs

• Real Estate Agent Fees: Typically paid by the seller (1–3% of property value).
• Property Transfer Tax: None for individuals buying residential property.
• Stamp Duty: If buying as a company, 4.25% applies.
• Annual Property Tax: 0.75% of the property’s taxable value.

2. Average Property Prices (2024 Estimates)

• Stockholm: SEK 80,000–120,000/m² (€7,000–11,000).
• Gothenburg: SEK 50,000–80,000/m² (€4,500–7,000).
• Malmö: SEK 40,000–70,000/m² (€3,500–6,500).
• Smaller towns: SEK 25,000–50,000/m² (€2,200–4,500).

Sweden Real Estate: Frequently Asked Questions (FAQs)

1. Can I get a mortgage as a foreigner in Sweden?

Yes, foreigners can get mortgages, but requirements vary. Swedish banks typically require:

• 20–30% down payment for non-residents.
• Proof of stable income.
• Swedish Personnummer (ID number) may be required.

2. Can buying property in Sweden give me residency?

No, buying property in Sweden does not grant automatic residency. You must apply for a visa or residence permit separately.

3. Are there restrictions on reselling property?

No, there are no restrictions on foreigners selling Swedish property.

4. Is buying property in Sweden a good investment?

Yes, Sweden has a stable housing market, with annual appreciation of 2–5% in major cities. However, rental yields are low (2–4%) due to strict rent control laws.

Sweden Real Estate: Conclusion

Sweden has no restrictions on foreign property ownership, making it an attractive market for international buyers. However, mortgages may require a higher down payment, and rental contracts can be difficult to secure in major cities. Whether renting or buying, working with licensed real estate agents and financial advisors will help you navigate the Swedish property market effectively.

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