Tips & Advice

How to buy a house in Sweden: the 1 thing you didn’t know

by André Piti On 02/18/2022

As more and more people from EU countries such as Germany and UK are getting interested on how to buy a house in Sweden, it is important to highlight two factors.

After the premise, we will explore one thing you might not know if you want to buy a house in Sweden and share some tips on the extra costs you will have to take.

• As Bloomberg and other reports shows, Sweden’s real estate market trend is going on a bullish uptrend and has seen an acceleration since the last three years.

• Nonetheless, foreigners that want to buy a house in Sweden have no restrictions, the process for EU citizen is swift and the real estate transfer is easy.

Given that it is still possible to find a good deal to buy a house, the market trend suggests incredibly high payoffs from such an investment.

But what is peculiar when buying in Sweden is that you are most likely going to face the so-called BRF, bostadsrättsförening (or housing associations).

Characteristics of housing associations in Sweden

Many communities in Sweden have housing associations that set certain rules and fees for living in the community.

Not all Sweden’s property are part of these associations, however, they own a good chunk of the market.

There are some pros and cons to living in an association that you should consider.

Pros

• Associations usually handle maintenance, security, and other improvements for the community.
• They refer to a board of directors that represent the specific organization, so that possible problems can be solved with joint efforts.

Cons

• You have to pay a monthly fee to the association, which can have a huge effect on your living costs. Each association charge set its own fees.
• You are not allowed to rent out your flat without the approval of the housing association’s board.

Side costs to buy a house in Sweden

Purchasing property in Sweden is nearly always done through an estate agent and you will pass through background checks, deed verification, and property surveys, as usual.

Apart from the overall real estate price, here are the additional expenses you will have to take care of:

Real Estate Agent’s Fee
Real estate agents fee is paid by the seller and generally negotiable between 3% and 5%.

Stamp Duty:
Buyers pay the stamp duty at 4.25% of the property value.

Registration Fee:
About 825SEK (Swedish Crowns) or 96€.

You can buy your property in the Swedish territory here. Then, remember that it takes an average of 14 days to complete the sole procedure needed to register a property in Sweden.