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: