Lennart Beck,  Monday, 24 July 2023

 

The picturesque landscape of Sweden, the endless forests, and the many lakes are increasingly attracting foreigners who want to buy a holiday home in this beautiful country. In this article, we explore the question of whether it is possible for foreigners to buy a holiday home in Sweden without living there permanently, and what steps need to be considered.

Holiday home purchase for foreigners in Sweden

In principle, the Swedish real estate market is open to foreign buyers, and there are no legal restrictions on the acquisition of holiday properties by non-Swedes. This means that foreigners, just like locals, can buy holiday homes in Sweden. However, one should be well informed beforehand and take into account some important aspects.

Requirements for buying a holiday home in Sweden

Even if you don't want to live permanently in Sweden, there are some requirements that you should meet to buy a holiday home in Sweden:

Taxes and Duties: As a foreign owner of a holiday home in Sweden, you need to be aware that certain taxes and duties may apply. This includes the property tax, which is due annually. In addition, any income from renting out the holiday home in Sweden must be taxed.
Financing: The financing of the holiday home purchase should be clarified in advance. Swedish banks are generally willing to grant loans to foreign buyers. However, it is advisable to consult various banks in advance to get the best conditions. Sometimes, financing through a foreign bank can also be sensible.
Insurance: For the ownership of a holiday home in Sweden, it is advisable to have sufficient insurance. This includes building insurance, which covers damage to the house, and liability insurance, which covers third-party damage.

The Purchase Process

The purchase of a holiday home in Sweden usually proceeds in three steps:

Property search: The search for a suitable property can be done through local real estate agents, online portals or newspaper ads. It is advisable to get an impression of the various regions and properties on site in order to make an informed decision.
Contract negotiations: After you have found a suitable property, you need to negotiate a purchase agreement with the seller. In Sweden, it is common for a lawyer or a real estate agent to draw up the contract. Make sure all relevant aspects are taken into account in the contract, such as the assumption of additional costs, any defects in the house or the assumption of existing contracts, such as electricity or waste disposal contracts.
Purchase processing: Once the purchase contract is signed, you must make the payment of the purchase price. In Sweden, it is common to make a deposit of 10% of the purchase price as soon as the contract is signed. The remaining amount is due at the time of property transfer. The property transfer usually takes place through registration in the Swedish land register (Lantmäteriet). It is advisable to hire a lawyer or real estate agent to accompany this process and ensure that all formalities are handled correctly.

Conclusion

Foreigners can easily buy a holiday home in Sweden, even if they do not want to live permanently in the country. However, you should inform yourself well in advance and clarify the various aspects, such as financing, taxes, and insurance. It is advisable to seek professional help when searching for a suitable property and handling the purchase process in order to avoid potential pitfalls and ensure a smooth process. With the right preparation and support, the dream of owning your own holiday home in Sweden is within reach.