Accommodation in Stockholm

Buy house or flat in Stockholm

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Sweden has a complex tax system regarding property purchase, but you’ll be relieved to know that the actual process of buying a home in Sweden - the legal formalities, obtaining financial help etc. - is relatively straightforward and there are no restrictions on foreign property ownership. Construction costs are high in Sweden, as are land prices, but the Swedish tax system does provide some relief on mortgage interest payments and property taxes are based on notional values that are kept artificially low by the government. VAT is charged on new buildings but once again the government has made concessions in the areas most in demand. Stamp Duty is levied at 3% for most business properties and 1.5% for private individuals and is calculated either according to the property tax assessment, or to the actual purchase price, whichever is the highest. If Sweden’s property prices continue to rise, more and more owners may find themselves caught in the net of the country’s long-running wealth tax, but the current administration are keen to bring this tax burden to an end. Sweden abolished inheritance tax in 2006. Capital gains tax should not be charged for the sale of privately owned property.

Living Costs in Sweden are high but property prices are comparable to other Western European nations and generally lower than the UK. It’s possible to find a home in the Stockholm region for around 100,000 euros.

The usual way to go about buying property in Sweden in through an estate agent. They will take care of the necessary paperwork and communicate buying and selling prices with all parties involved. It is common practice for buyers to hire independent surveyors to value the property they intend to buy but this is not obligatory.

Upon conclusion of the purchase of the property, as the buyer it is your responsibility to apply for the deeds of title within three months of the sale transfer and submit for registration. You are not obliged to hire a lawyer during this process but it can be useful. Estate Agents fees are 3.5% of the sale on average. Make sure they are registered and insured.

Mortgage lenders in Sweden usually grant loans of up to 75% of the value of the property, normally with fixed rates of repayment. Payment terms are pretty flexible. You may be liable to pay 2% tax on the mortgage deeds.

Check out this website for one of the most popular estate agents assisting non-Swedes looking for owner-occupied flats and houses:

Update 14/05/2008


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