Buying Property in Sweden

As an EU member there are no restrictions owning or Buying property in Sweden and as applies in the UK it is the usual practice for an Estate Agent to be instructed to act for both buyer and seller with the vendor being liable for professional fees which are approximately 3-5% of the sale price achieved. It is important when buying property in Sweden to make an offer to purchase, through the acting agent, who will then communicate between the parties and upon agreement being reached, it is customary to place a deposit of 20% as a down payment.

When buying property in Sweden and depending on your financial arrangements, you may wish to employ the services of an independent surveyor, this is common practice. You are not however obliged to appoint a solicitor but it is generally recommended you do so and upon completion of your purchase it is encumberant upon the purchaser to apply for the sale transfer and registration of title deeds within a period of three months, in practice your solicitor will do this on your behalf.

Legal fees will vary between 1 to 4% and in addition stamp duty is charged on registration of deeds at a rate of approximately 1% of the purchase price, buying property in Sweden also attracts a property tax at an annual rate of around 1.5% calculated as to 75% of the regularly assessed value, this also applies to foreign ownership, however newly built homes or renovated homes are exempt from property tax for the first five years with a 50% reduction for the subsequent five years , applicable.

If you are buying property in Sweden and require a mortgage you can expect to achieve a loan of up to 75% of the value of your purchase, usually with fixed rate options for the repayment of same. Payment terms are flexible with average repayment terms of 20 years. Interest rates in Sweden are slightly lower than in the UK and your ability to be granted a loan will be based on your UK earnings and not generally, on rental income achieved.