How to buy a house in Sweden as an American?

Authored by the expert who managed and guided the team behind the Sweden Property Pack

Everything you need to know before buying real estate is included in our Sweden Property Pack

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries (Sweden, Germany, France, Spain, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Sweden. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At InvestRopa, we explore the Swedish real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Stockholm, Gothenburg, and Malmö. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can Americans legally buy property in Sweden or are there restrictions compared to locals or EU citizens?

Americans can legally buy property in Sweden with virtually no restrictions compared to locals or EU citizens.

Sweden maintains one of Europe's most open property markets, allowing foreigners including Americans to purchase residential and commercial real estate as well as land without special permits or residency requirements. Americans enjoy the same property rights as Swedish citizens when it comes to real estate ownership.

The only notable exception applies to certain agricultural properties, which may require a special permit, but this restriction applies equally to Swedish citizens and foreigners. For standard residential properties, apartments, and commercial real estate, Americans face no nationality-based limits or ownership restrictions.

This open policy makes Sweden particularly attractive for American investors and individuals looking to relocate, as the legal framework provides security and equal treatment under Swedish property law.

Do Americans need a visa, residency permit, or any special status to buy a house or live in Sweden long-term?

Americans do not need any visa, residency permit, or special status to buy property in Sweden, but they do need permits for long-term residence.

For property purchase, you can complete the entire buying process without being physically present in Sweden or holding any Swedish documentation. The transaction can be handled remotely through legal representatives and real estate agents.

However, owning property does not grant residency rights. Americans can stay in Sweden for up to 90 days without a visa under tourist rules. To live in Sweden for more than 90 days, Americans must obtain a residence permit through work, study, family reunification, or other qualifying criteria.

Retirees can apply for a residence permit if they demonstrate sufficient funds and comprehensive health insurance. The property ownership and residency requirements are completely separate legal matters in Swedish law.

Is it necessary for Americans to be physically present in Sweden during the house-hunting or buying process, or can it be done remotely?

Physical presence in Sweden is not necessary for Americans to buy property - the entire process can be completed remotely.

The complete buying process from property search to final ownership transfer can be handled from the United States. You can search for properties using online platforms, work with Swedish real estate agents via video calls and email, make offers, sign contracts, and transfer funds without traveling to Sweden.

Real estate agents and lawyers can represent you throughout the process, handling viewings through virtual tours or in-person visits on your behalf. Legal authorizations and document signings can typically be managed through power of attorney arrangements.

While some buyers prefer to visit properties in person before purchasing, particularly for larger investments, Swedish legal and real estate systems are well-equipped to handle international remote transactions securely and efficiently.

What documents and steps are required for Americans to buy property in Sweden, from start to finish?

The property buying process for Americans involves several clear steps and required documentation:**Required Documents:**1. Valid U.S. passport for identity verification2. Bank statements or financing guarantees proving funds availability3. Proof of income if applying for Swedish mortgage financing**Purchase Process Steps:**1. **Property Search:** Use online platforms like Hemnet or work with licensed Swedish real estate agents2. **Make an Offer:** Submit formal bid with price and terms negotiation3. **Purchase Agreement:** Sign binding contract once offer is accepted, typically requiring 10% deposit4. **Due Diligence:** Review property condition, legal title, and any restrictions or liens5. **Final Payment:** Transfer remaining balance and complete all documentation6. **Registration:** Property ownership is registered with Swedish Land Survey Authority7. **Tax Registration:** Obtain coordination number (samordningsnummer) for tax purposes if needed

The entire process typically takes 4-8 weeks from accepted offer to completed ownership transfer. Swedish real estate transactions follow standardized procedures with strong legal protections for both buyers and sellers.

Are Americans eligible for mortgages in Sweden, and what are the typical rates, terms, and approval conditions?

Americans can obtain mortgages in Sweden, but the process is more challenging without Swedish residency and local credit history.

Swedish banks typically require proof of stable income, good credit history, and often demand larger down payments from foreign buyers, usually 15% or more compared to the standard 10% for residents. Having a Swedish personal identity number (personnummer) and local credit history significantly improves approval chances.

As of mid-2025, Swedish mortgage rates average around 3.1%, which remains relatively competitive. Swedish mortgages are typically open-ended without fixed repayment periods, and interest on primary residences is tax-deductible. Most banks prefer applicants to have been Swedish tax residents for at least one to two years before granting mortgages.

Some banks may consider Americans with strong international credit histories and substantial assets, but each application is evaluated individually. Working with mortgage brokers who specialize in foreign buyers can improve approval odds.

It's something we develop in our Sweden property pack.

Do Americans need to hire a Swedish lawyer or notary for the transaction, and what other professionals are typically involved?

While not legally required, hiring a Swedish real estate attorney is highly advisable for Americans buying property in Sweden.

A qualified Swedish lawyer can review contracts, ensure compliance with local laws, handle complex legal procedures, and protect your interests throughout the transaction. Swedish property law has specific requirements and protections that differ from U.S. real estate practices.

Notarization is not required for Swedish property transactions, unlike many other countries. The key professionals typically involved include licensed real estate agents who act as impartial intermediaries between buyer and seller, real estate attorneys for legal guidance, and tax advisors for cross-border tax implications.

Many Americans also work with mortgage brokers specializing in foreign buyers, property inspectors for due diligence, and currency exchange specialists for international transfers. The Swedish system relies more heavily on licensed professionals than notarization for transaction security.

How does property taxation work for Americans in Sweden—both during ownership and upon selling or renting it out?

Americans owning property in Sweden face several tax obligations that apply regardless of residency status.

Annual property tax consists of a property charge (fastighetsavgift) of 0.75% of the property's assessed value, capped at SEK 10,074 per residential building as of 2025. This applies to all property owners regardless of nationality or residency.

When selling property, capital gains are taxed at 22% for individuals on private real property and tenant-owner apartments. This tax applies even to non-residents, making it important to factor into investment calculations. A one-time stamp duty of 1.5% is charged on house purchases (not apartments) and 4.25% on commercial or land purchases.

Rental income from Swedish property is subject to Swedish taxation with a standard deduction of SEK 40,000 plus 20% of annual rental income for related expenses. Americans must report this income to both Swedish tax authorities and the IRS, though the U.S.-Sweden tax treaty helps prevent double taxation through foreign tax credits.

What are the typical property prices in major Swedish cities and regions like Stockholm, Gothenburg, Malmö, and the countryside?

Swedish property prices vary significantly by location, with major cities commanding premium prices:

Region/City	Average House Price (SEK)	Average Apartment Price per m²
Stockholm	6.7-7.0 million	86,900 SEK
Gothenburg	4.1 million	4,700 SEK
Malmö	3.9 million	2,750 SEK
Uppsala	3.5 million	3,200 SEK
Countryside/Northern regions	2.2-2.5 million	1,800-2,200 SEK
National Average	3.7-3.9 million	2,600 SEK

Stockholm represents Sweden's most expensive real estate market, with city center apartments commanding premium prices due to high demand and limited supply. Northern regions including Upper Norrland are experiencing the highest price growth rates, while Stockholm prices have stabilized after recent corrections.

Which areas in Sweden are most popular among Americans and other expats for living, investing, or retiring, and why?

Stockholm attracts the most American expats due to its status as Sweden's vibrant capital with high quality of life, though it comes with premium pricing.

Gothenburg appeals to Americans seeking a more relaxed lifestyle while maintaining cultural richness and economic opportunities. The city offers strong job markets, excellent universities, and a thriving arts scene at more affordable prices than Stockholm.

Malmö draws Americans interested in multicultural environments, with its proximity to Denmark providing easy access to Copenhagen. The city features dynamic arts scenes and growing tech sectors. Uppsala attracts Americans working in academia or seeking historic charm while remaining close to Stockholm.

Smaller cities like Västerås, Växjö, and Helsingborg offer Americans affordable living with high quality of life and scenic locations. Northern regions and countryside areas appeal to nature lovers and remote workers, offering significantly lower property prices with strong growth potential.

It's something we develop in our Sweden property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Sweden versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the best places in Sweden for rental yield, tourism potential, and long-term capital appreciation based on recent data?

Stockholm, Gothenburg, and Malmö offer the strongest combination of rental yields and capital appreciation potential for American investors.

Stockholm provides high rental demand from international workers and students, strong tourism infrastructure, and consistent long-term capital appreciation, particularly in central and eco-friendly property segments. The city's tech sector growth continues driving rental demand.

Emerging markets like Uppsala, Linköping, and Helsingborg show promising rental yields due to growing student and expat populations. These cities offer better entry prices while maintaining strong rental demand from universities and expanding business sectors.

Northern regions including Upper Norrland present the highest capital appreciation potential due to current affordability and lifestyle migration trends. As remote work becomes more common, these areas attract buyers seeking nature and lower costs while maintaining connectivity.

Tourism-focused areas near ski resorts and coastal regions offer seasonal rental opportunities, though year-round rental demand varies significantly by location.

What are the most common mistakes Americans make when buying property in Sweden, and how can they be avoided?

Americans frequently make several avoidable mistakes when purchasing Swedish property:1. **Underestimating Legal and Tax Complexity:** Many Americans assume Swedish property law mirrors U.S. practices. Always consult local attorneys and tax advisors to navigate Swedish regulations and avoid double taxation issues.2. **Overestimating Mortgage Accessibility:** Americans often expect similar mortgage terms to U.S. markets. Prepare for stricter lending criteria, higher down payments, and longer approval processes as a foreign buyer.3. **Skipping Thorough Due Diligence:** Some buyers rush through property inspections and legal reviews. Always inspect properties carefully and review all documentation, including building permits and association fees.4. **Ignoring Local Market Dynamics:** Americans may not research regional price trends and rental demand patterns. Study local markets thoroughly before investing, considering factors like transportation links and employment opportunities.5. **Assuming Property Ownership Grants Residency:** Many Americans believe buying property provides residency rights. Property ownership and immigration status are completely separate legal matters in Sweden.

It's something we develop in our Sweden property pack.

How does owning property in Sweden affect your U.S. taxes, and are there any treaties or double-taxation agreements to know about?

Americans must report worldwide income including Swedish rental income and capital gains to the IRS, regardless of where they live or own property.

The U.S.-Sweden tax treaty helps prevent double taxation on income and capital gains from Swedish property. Americans can claim foreign tax credits for Swedish taxes paid, reducing their U.S. tax liability dollar-for-dollar for taxes paid to Sweden.

Americans with Swedish rental income must file both U.S. and Swedish tax returns annually. Swedish rental income should be reported on your U.S. tax return, but you can typically offset Swedish taxes paid through foreign tax credits. Similarly, capital gains from Swedish property sales must be reported to both countries.

The tax treaty provides specific rules for determining tax residency and allocation of taxation rights between the two countries. Americans should consult tax professionals familiar with both U.S. and Swedish tax law to ensure compliance and optimize their tax position.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. InvestRopa - Sweden US Citizen Property Ownership
2. Global Property Guide - Sweden Buying Guide
3. Arab MLS - Foreigners Buying Property in Sweden
4. Swedish Tax Agency - Property Tax Information
5. Global Property Guide - Sweden Price History
6. Trading Economics - Sweden Mortgage Rates
7. Taxes for Expats - Sweden Tax Guide for Americans
8. IRS - US-Sweden Tax Treaty