How to buy house in Sweden as foreigner?

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

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INVESTROPA

A team specialized in real estate investing in European countries

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 I legally buy property in Sweden as a foreigner or do I need special permits?

Foreigners can legally buy residential property in Sweden without any restrictions or special permits.

Sweden allows non-residents and non-citizens to purchase apartments, houses, and villas without requiring residency status, special visas, or government approval. You don't need to be a Swedish citizen or even live in Sweden to own property there.

The only exception applies to certain agricultural properties, where both foreigners and Swedish citizens may need permits from local authorities. This restriction typically affects farmland and large rural estates, not standard residential properties in cities or towns.

As of September 2025, Sweden maintains one of the most open property markets in Europe for foreign investors. Unlike some neighboring countries that impose nationality restrictions or minimum investment thresholds, Sweden treats foreign buyers equally to domestic purchasers in most residential transactions.

This legal framework makes Sweden particularly attractive for international property investors and those considering relocation to Scandinavia.

What are the typical prices per square meter in Stockholm, Gothenburg, Malmö and smaller towns?

Property prices in Sweden vary significantly between major cities and smaller towns, with Stockholm commanding the highest premiums.

Location	Price per m²	Typical Property Size
Stockholm	€7,700-€9,700	50-80 m² apartments
Gothenburg	€4,700-€5,400	60-90 m² apartments
Malmö	€2,500-€2,750	65-95 m² apartments
Smaller Towns	€1,000-€2,000	80-120 m² houses
National Average	€2,600-€3,000	70-100 m² properties

Stockholm represents Sweden's most expensive real estate market, reflecting its status as the capital and economic center. A typical 70 m² apartment in central Stockholm costs between €540,000 and €680,000.

Gothenburg offers a middle ground with prices roughly 40-50% lower than Stockholm, making it attractive for buyers seeking urban amenities at more reasonable costs. Malmö, benefiting from its proximity to Copenhagen, provides the most affordable major city option.

Rural areas and smaller towns offer significant value, with properties often including larger living spaces and private gardens. Towns like Växjö, Kalmar, and Sundsvall typically fall within the €1,200-€1,800 per m² range.

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

How much cash do I need upfront for a down payment and what percentage do banks usually require?

Swedish banks typically require a 15% down payment for domestic buyers, but foreigners often need between 20-40% of the property value as upfront cash.

Non-residents face stricter lending criteria because banks consider them higher risk due to limited local credit history and income verification challenges. Most Swedish banks require foreigners to provide larger down payments to offset this perceived risk.

For a €400,000 apartment in Stockholm, foreign buyers should prepare at least €60,000-€80,000 for the down payment, though some banks may require up to €160,000 (40%) depending on individual circumstances and the specific lender's policies.

Proposed 2025 rule changes may increase the maximum loan-to-value ratio from 85% to 90%, potentially reducing minimum down payment requirements. However, these changes primarily benefit domestic buyers with established Swedish credit profiles.

Additional upfront costs include closing expenses (2-3% of purchase price), so budget an extra €8,000-€12,000 beyond the down payment for a €400,000 property purchase.

Can I get a mortgage in Sweden as a non-resident and what interest rates should I expect?

Getting a Swedish mortgage as a non-resident is challenging but possible, with higher interest rates and stricter requirements than domestic borrowers face.

Most Swedish banks are reluctant to lend to non-residents without a Swedish personal identity number (personnummer) and local income. Banks that do offer mortgages to foreigners typically require extensive documentation including foreign income verification, credit reports from your home country, and sometimes Swedish guarantors.

As of September 2025, average Swedish mortgage rates hover around 3.1% for domestic buyers with good credit. Non-residents typically pay premium rates of 3.5-4.5% or higher, depending on their financial profile and the perceived risk level.

International banks with Swedish operations, such as Handelsbanken and SEB, may be more accommodating to foreign buyers with existing relationships. Some specialized lenders focus specifically on non-resident borrowers but charge significantly higher rates.

Alternative financing options include securing a mortgage in your home country against existing assets, or partnering with Swedish residents who can qualify for local lending rates. Cash purchases remain the most straightforward option for many foreign buyers.

What are the closing costs in Sweden, like stamp duty, legal fees and other taxes, and how much do they add up to?

Total closing costs in Sweden typically amount to 2-3% of the property purchase price for buyers.

The main closing cost components include stamp duty at 1.5% for individual buyers (4.25% for companies), registration fees of approximately SEK 825 (€75), and optional but recommended legal fees ranging from €1,000-€3,000 depending on service complexity.

Unlike many countries, Swedish property buyers don't pay real estate agent commissions, as these are covered by the seller. This significantly reduces the total transaction costs compared to markets where buyers pay agent fees.

For a €400,000 property purchase, expect total closing costs of approximately €8,000-€12,000, broken down as €6,000 stamp duty, €75 registration fee, and €2,000-€3,000 in legal and administrative fees.

Additional optional costs may include property surveys (€500-€1,000), mortgage arrangement fees (typically 0.5-1% of loan amount), and notary services for document authentication if required.

Do I need to set up a Swedish bank account or get a Swedish personal identity number to buy a home?

While not legally required for property purchase, having a Swedish bank account and personal identity number is practically essential for most transactions.

Foreigners can technically complete property purchases without these requirements, but banks, utility companies, and local services typically require Swedish banking relationships for ongoing property ownership responsibilities.

Non-residents who don't qualify for a personnummer receive a coordination number (samordningsnummer) which serves similar functions for property-related transactions. This number enables basic banking services and utility connections necessary for property ownership.

Setting up a Swedish bank account requires physical presence in Sweden, valid identification, and proof of address. Some banks also require minimum deposits or proof of regular income to maintain accounts.

For mortgage applications, Swedish banks strongly prefer applicants with local bank accounts and established banking relationships. Cash buyers have more flexibility but still benefit from local banking for property management and ongoing expenses.

How does the bidding process work in Sweden and how long does it usually take from offer to move-in?

Swedish property sales follow an open bidding system where all offers are transparent and buyers compete publicly through estate agents.

1. **Initial Marketing**: Properties are listed with starting prices, often set below expected sale prices to generate interest 2. **Open Bidding**: Interested buyers submit bids through the estate agent, with all offers visible to other participants 3. **Bid Escalation**: Buyers can increase their offers in real-time, similar to an auction format 4. **Seller Decision**: Sellers aren't obligated to accept the highest bid and may consider other factors like financing certainty 5. **Contract Signing**: Once verbal agreement is reached, written contracts are typically signed within days

The timeline from accepted offer to move-in varies significantly based on financing arrangements. Cash buyers can complete purchases in as little as 2 weeks, while mortgage-dependent buyers typically need 6-16 weeks for loan approval and processing.

Foreign buyers should expect longer timelines due to additional documentation requirements and potential delays in international banking processes. Plan for 2-4 months from initial offer to move-in when financing is required.

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

Are there restrictions on buying certain types of property like agricultural land or holiday homes?

Sweden imposes few restrictions on foreign property ownership, with most limitations applying equally to domestic and international buyers.

Residential properties including apartments, houses, and condominiums can be purchased without restrictions. This includes both primary residences and investment properties in urban and suburban areas.

Agricultural land purchases may require permits from local authorities, but this restriction applies to both Swedish citizens and foreigners. The permit process evaluates buyers' farming experience and long-term land use plans rather than nationality.

Holiday homes and vacation properties are freely available to foreign buyers without special permits or restrictions. Many foreigners successfully purchase summer houses in Sweden's archipelagos and countryside regions.

Commercial properties, office buildings, and retail spaces are also available to foreign investors without nationality-based restrictions, though financing may be more challenging for non-residents.

What are the ongoing costs of ownership in Sweden such as property tax, monthly fees for apartments and maintenance?

Swedish property ownership involves several ongoing costs that buyers should factor into their investment calculations.

Cost Type	Amount	Frequency
Property Tax	0.75% of assessed value	Annual
Housing Association Fee	€260-€520+ monthly	Monthly
Utilities	€100-€220 monthly	Monthly
Home Insurance	€200-€400 annually	Annual
Maintenance Reserve	1-2% of property value	Annual

Property tax in Sweden is relatively low at 0.75% of the tax assessment value annually. New construction properties receive a 15-year exemption from property taxes, making newly built apartments and houses particularly attractive.

Housing association fees (avgift) for apartments vary significantly based on building amenities, location, and size. Central Stockholm apartments typically charge €400-€600 monthly, while smaller cities range from €200-€400 monthly.

Utility costs including heating, electricity, water, and internet typically range from €100-€220 monthly depending on property size and energy efficiency. Swedish buildings generally have excellent insulation, keeping heating costs moderate despite cold winters.

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.

How do I find reliable English-speaking real estate agents and lawyers in Sweden?

Most real estate agents in Stockholm, Gothenburg, and Malmö speak English fluently and regularly work with international clients.

Look for agents certified by the Swedish Estate Agents Inspectorate (Fastighetsmäklarinspektionen), which ensures professional standards and legal compliance. Major agencies like Fastighetsbyrån, Svensk Fastighetsförmedling, and Notar have extensive experience with foreign buyers.

For legal representation, international law firms such as Mannheimer Swartling, Setterwalls, and Lindahl offer English-language property transaction services. These firms understand the complexities foreign buyers face and can navigate Swedish legal requirements efficiently.

Online platforms like Hemnet (Sweden's primary property portal) feature agent profiles with language capabilities and client reviews. Many agents prominently advertise their English-speaking services and international client experience.

Professional referrals from banks, international companies, or expatriate communities provide valuable recommendations for agents and lawyers experienced with foreign buyers' specific needs.

What documents will I be asked for during the purchase process and do they need to be translated into Swedish?

Swedish property purchases require standard identification and financial documentation, with translation requirements varying by institution.

1. **Essential Documents**: Valid passport, proof of funds or mortgage pre-approval, foreign address verification, and income statements 2. **Mortgage Applications**: Bank statements, employment verification, tax returns, credit reports from home country 3. **Legal Documentation**: Power of attorney if using representatives, certified translations for official documents 4. **Additional Requirements**: Anti-money laundering documentation, proof of legal fund sources for large transactions 5. **Property-Specific**: Building surveys, energy certificates, housing association financial statements for apartments

Many documents can be submitted in English, particularly with international banks and law firms. However, mortgage lenders and government agencies may require certified Swedish translations for official documents.

Certified translation services in Sweden cost approximately €50-€100 per page. Plan for potential translation needs when budgeting for your property purchase, especially for income documentation and legal contracts.

Digital document submission is increasingly common, streamlining the process for international buyers who can upload required documentation remotely.

How easy is it to rent out my property as a foreigner if I'm not living in Sweden full time?

Foreign property owners can legally rent out their Swedish properties, but apartment owners must obtain housing association approval first.

For apartments (bostadsrätt), housing associations control rental permissions and may limit rental periods or require owner approval for tenants. Some associations restrict rentals to preserve community character or limit rental units within buildings.

House owners (villa) have more freedom to rent their properties without association restrictions, making single-family homes more attractive for buy-to-let investors.

Rental income from Swedish properties is subject to Swedish taxation regardless of owner residency. Foreign owners must register with Swedish tax authorities and file annual returns on rental income, typically taxed at standard income rates.

Property management companies can handle day-to-day rental operations for non-resident owners, including tenant screening, rent collection, and maintenance coordination. Management fees typically range from 8-15% of rental income plus additional charges for specific services.

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

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. Nordic Council - Housing in Sweden
2. Wise - Buying Property in Sweden
3. InvestRopa - Sweden Real Estate for Foreigners
4. InvestRopa - Buying House in Sweden
5. Immigrant Invest - Sweden Property Guide
6. Lawyers Sweden - Property Purchase Guide
7. InvestRopa - Sweden Price Forecasts
8. Global Property Guide - Sweden Square Meter Prices
9. Housing Coop EU - Sweden Overview
10. Wise - Swedish Mortgages