Buying Property in Sweden

Foreigners are not restricted from buying properties in Sweden. Expats living in Sweden can choose to buy properties rather than opt for rental accommodation, as the process of buying is seamless and easy.

Property investors have shown a keen interest in the Swedish property market based on its strong economy and stable environment. Although the cost of living is comparable to the UK, interested buyers are surprised to find that most real estate properties are cheaper than in neighbouring countries. The disparity of house prices in Sweden is attributed to the preference of most Swedes to rent rather than buy their property. And though many locals as well as expats often choose to lease, the reality is, buying a house is relatively easier than renting.

Property Showing

Details of properties for sale are usually found in regional and local newspapers, on the worldwide web, from housing companies and real estate agents. Property showings take place on Sunday afternoon and last 30 minutes to an hour. There may be 10 to 20 other people checking the property, expats can request for a private viewing during the bidding process.

The Bidding Process

Keep in mind that the Swedish property market operates in a system of bids. Biddings are done publicly and potential buyers can watch the bid on the internet. There are no regulations on the bidding process and prices can shoot almost instantly so expat must have a fixed limit on how much he will spend. Once the seller finds an attractive bid, a contract which is the only legally binding document, will be signed with the buyer.

Fees and Taxes

In Sweden, permanent residents who have stable employment and revenue are able to apply for a loan to purchase a property. Most banks in Sweden grant mortgages of up to 75% of the property value. Any borrower is subject to credit check and repayment schemes are flexible, but on an average of 20 years. Mortgage interest rates are low and usually range from 2%-2.5%.

Getting the services of a real estate agent is a normal practice. Agent fees are usually 3-5% of the sale, which is paid by the seller. Other fees that the buyer should settle are:

• A deposit or fee to hold the property once an offer has been accepted – 20% of the total value of the property
• Statlig Fastighetsskatt (Real Estate Tax) – levied at rates ranging from 0.2% to 2.8% on the tax assessed value of the property.
• Stamp duty – 4.25% of the assessed value of the property
• Registration Fee – SEK 825 or €96
• Solicitor’s fee – between 1% and 4% of the purchase price
• Stamp duty – payable at roughly 1%

It takes about 14 business days to complete the procedure of registering a property in Sweden. The purchase of a residential property normally take place with just the service of a a real estate agent and does not necessarily require the services of a lawyer.

Top Real Estate Locations

Stockholm, Göteborg and Malmö are Sweden's three great cities and popular destinations for real estate, although the cost of properties is skyrocketing. Stockholm is highly urbanised yet full of history while Göteborg is the industrial heart of Sweden. Malmö has a cosier touch and provides easy access for those who work in Copenhagen, Denmark. Property prices in Malmö are lower than in Stockholm and Göteborg. Other popular property locations are in Falsterbo and the university town of Lund. Below are some of the average prices of properties in the Swedish real estate market:

• 50 square metres apartment for sale in Stockholm - €180,000
• 200 square metres apartment for sale in Stockholm - €900,000
• 40 square metres apartment in Göteborg - €75,000
• Three bedroom house in Falsterbo or Lund - €350,000
• Cottage outside the city centre – €40,000
• Large house outside the city centre - €100,000
• A lake side property in the northern region - €25,000