How to buy property in Sweden as a foreign citizen?

Purchasing property in Sweden means navigating through a country-specific system with unique rules and traditions. Below, we have compiled the most common questions we usually receive from our international clients considering moving to Sweden or interested in buying a holiday home here.

What rules and laws apply to foreign buyers of Swedish property?

Foreign citizens generally have the same rights as Swedish citizens when it comes to purchasing property in Sweden. There are no specific restrictions for foreign citizens to buy property, but there may be special rules or permits required for certain types of properties, such as agricultural land.

Is a Swedish personal identity number necessary to buy property in Sweden?

A Swedish personal identity number is not mandatory for purchasing property here, but it simplifies many processes, including banking transactions. Foreign buyers without a personal number may need to provide additional documentation to verify their identity and financial situation.

Is a bank account in a Swedish bank needed to carry out the purchase?

It is not strictly necessary to have a bank account in a Swedish bank to purchase property, but it simplifies the payment process, including the transfer of the deposit and final payment. It can also facilitate ongoing costs associated with the property after purchase. Transfers from foreign accounts may require additional verification, such as the origin of the funds, which could potentially delay the process.

When does the bidding on a property start and end?

Bidding usually starts after the first viewing or when a first bid is made. The real estate agent coordinates the bidding, informs about new bids, and the process ends when the seller accepts a bid that best meets their conditions. A bidding can last several days, but the seller can also accept a bid directly if it matches their expectations, thus foregoing further bidding process.

How does one place a bid on a property?

To place a bid, contact the real estate agent responsible for the sale and communicate your bid, either by phone or email. There are no formal requirements for how this is done. The agent then records the bid and informs the seller and the other bidders of the new bid.

How common is it for the final price to be lower or higher than the asking price?

In a strong real estate market, it is common for the final price to exceed the asking price, sometimes significantly. In less competitive areas or during periods of weaker market, properties can be sold close to, at, or even below the asking price.

What is the role of the real estate agent throughout the deal?

The real estate agent acts as an impartial intermediary between seller and buyer, responsible for marketing the property, organizing viewings, managing the bidding, and ensuring that all legal and financial commitments are met.

Do you have to attend the viewing?

Our agents always strive to provide you with accurate and reliable information about the property. If you cannot attend in person, we can also arrange a video viewing. You can also order an inspection by a professional technician, and for some properties, an inspection protocol is available from the beginning of the sale. However, it is important that you as the buyer are aware of your extensive duty to inspect. This means that you cannot make any claims regarding faults in the property after the purchase that were discoverable during a thorough inspection or such faults that could reasonably have been expected considering the house's age, price, construction, general condition, or other circumstances.

Is it possible to complete the purchase without being personally present?

The contract can be signed remotely, either by sending the documents by mail or by giving someone in Sweden the power of attorney to sign the documents for you. The process involves important steps such as identity verification, which can extend the process somewhat if you are not on site. However, this can be resolved, for example, through the Swedish embassy or consulate in your country.

What taxes and fees must be paid when purchasing property in Sweden?

When you buy a property in Sweden, you as the buyer are obliged to pay a property fee and stamp duty. For individuals, the stamp duty is currently 1.5% of the purchase price, plus a fee of SEK 825.

Why are mortgage deeds left at transfer? Does it mean the new owner takes over the loan?

The presence of mortgage deeds on a property does not automatically mean there is an active loan. Instead, a mortgage deed indicates the amount up to which the property was previously mortgaged. Unless otherwise agreed between the parties, the real estate agent will ensure that the seller's loan is settled by the day of access, so you as the buyer can take over the property unencumbered. If the previous loan has been paid off but the mortgage deeds remain, they can be potentially used by the new owner for future loans. However the loan amount a new owner can obtain may be more or less, depending on the lender's assessment of the property's value and the buyer's financial situation.

What permits are needed to carry out renovations or construction work on the property?

For major renovations or construction work, it may be necessary to apply for a building permit. It is recommended that you contact your local municipality to understand the specific rules and requirements that apply.

If I do not live in the property permanently, can I rent it out?

In Sweden, there are no general restrictions against renting out properties. However, if you do not live permanently in the property, you should be aware of any potential tax consequences.

We hope these answers give you a good overview of the process of buying property in Sweden. Keep in mind that specific circumstances may vary, but our team of real estate agents is always ready to assist you throughout the entire purchase process, to ensure that it is as smooth and secure as possible.