Mistakes to avoid buying property in Sweden?

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

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.

How much does the typical down payment need to be in Sweden and how does it affect my mortgage approval?

The legal minimum down payment in Sweden is 15% of the property purchase price, but foreign buyers typically need 20-30% to secure mortgage approval from Swedish banks.

Swedish banks assess mortgage applications based on a maximum loan-to-income ratio of 4.5 times your annual income. If your desired property costs more than what you can borrow under this ratio, you'll need to increase your down payment percentage accordingly. For example, if you earn 500,000 SEK annually, the maximum mortgage would be 2.25 million SEK, requiring a larger down payment for properties above 2.65 million SEK total price.

Foreign buyers face additional scrutiny because they typically lack established Swedish credit history. Banks view a larger down payment as proof of financial stability and reduced lending risk. The mortgage (bolån) normally covers up to 85% of the property value, but this percentage can decrease for applicants with short Swedish residency or limited local income documentation.

Your employment status in Sweden significantly impacts approval odds. Permanent employment contracts carry more weight than temporary positions or foreign income sources. Banks also consider your debt-to-income ratio, with existing loans reducing your borrowing capacity under the 4.5x income rule.

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

What should I check in the property's legal documents to avoid hidden debts or ownership disputes?

Start by requesting the property title from Lantmäteriet (Swedish Land Survey Authority) to verify current ownership, accurate property boundaries, and any registered liens or competing ownership claims.

Examine all existing mortgage certificates (pantbrev) associated with the property to ensure no outstanding debts will transfer to you as the new owner. These certificates represent the maximum amount that can be borrowed against the property, but outstanding loan balances may still exist. Request confirmation from the seller that all mortgages will be cleared at closing or factored into the purchase price.

Review the purchase agreement thoroughly with a qualified Swedish property lawyer or notary. Look for clauses that clearly state the property transfers free of all debts, liens, and third-party claims. The agreement should specify which party handles outstanding utility bills, property taxes, and homeowners' association fees up to the transfer date.

Check for any easements, rights of way, or usage restrictions registered against the property that could limit your intended use. These might include neighbor access rights, utility company easements, or municipal restrictions on renovations or commercial use.

Verify that all previous renovations and additions have proper permits recorded with the local municipality (kommun). Unpermitted work can create legal liabilities and complicate future sales or refinancing.

Are there extra costs like stamp duty, agent fees, or maintenance charges I need to budget for?

Cost Type	Amount/Rate	When Due
Stamp duty (lagfart)	1.5% of purchase price + 825 SEK fee	At property registration
Mortgage deed fee (pantbrev)	2% of new mortgage amount	When establishing mortgage
Technical inspection	Around 10,000 SEK	Before signing contract
Legal fees	15,000-30,000 SEK	During transaction process
Property insurance	3,000-8,000 SEK annually	Ongoing
Annual property charge	0.75% of assessed value (max ~10,074 SEK)	Yearly
Moving and utility setup	5,000-15,000 SEK	At move-in

How do I make sure the apartment or house complies with Swedish building regulations and safety codes?

Verify that the property meets Boverket's building regulations (BBR) by requesting documentation of all construction permits, occupancy certificates, and inspection approvals from the seller.

Check that any renovations or additions completed after initial construction have proper permits and final inspections recorded with the local building authority (byggnadsnämnd). Major changes to plumbing, electrical systems, structural elements, or room layouts typically require permits and professional sign-offs.

Review energy performance certificates and ensure the property meets current energy efficiency standards, especially if built before 2006 when stricter requirements took effect. Non-compliant properties may require expensive upgrades to meet rental or resale standards.

Confirm that fire safety equipment meets current codes, including smoke detectors, fire extinguishers in certain property types, and proper escape routes. Older buildings may need retrofitting to meet modern safety standards.

Request documentation showing compliance with accessibility requirements if applicable, particularly for multi-family buildings or properties intended for rental income.

What common issues should I look for during a technical inspection before signing anything?

Moisture damage represents the most expensive and common problem in Swedish properties, particularly in basements, bathrooms, and around windows where poor sealing allows water infiltration.

Focus on these critical areas during inspection:

1. Roof and foundation integrity: Look for cracks, settling, water stains, or structural movement that could indicate expensive repair needs
2. Heating, plumbing, and electrical systems: Test all systems thoroughly and check age of major components like boilers, water heaters, and electrical panels
3. Window condition and insulation: Poor windows and insulation drive up heating costs significantly in Swedish winters
4. Ventilation systems: Inadequate ventilation leads to moisture problems and potential mold growth
5. Exterior maintenance needs: Evaluate siding, paint, gutters, and drainage systems for immediate or near-term replacement requirements

Hire an independent professional inspector following SBR (Swedish Building Industry) standards for visual inspection and risk analysis. Basic inspections cost around 10,000 SEK but can save tens of thousands in unexpected repairs. If the inspector identifies potential issues, consider additional testing like moisture measurements or electrical system analysis.

Review the inspection report carefully for any recommendations regarding deferred maintenance or urgent safety issues. Use significant findings to negotiate purchase price reductions or require seller repairs before closing.

How can I verify that the homeowners' association (bostadsrättsförening) is financially healthy?

Request and analyze the last three annual reports from the bostadsrättsförening (BRF) to assess income, expenses, assets, liabilities, and planned maintenance projects.

Key financial health indicators to examine include debt levels per square meter, reserve fund adequacy, and trends in monthly fees. High or rapidly increasing debt, unscheduled major repairs, or consistently rising monthly fees without corresponding improvements indicate potential financial stress.

Review planned maintenance schedules and associated costs for major building systems like elevators, heating, roofing, and facade work. Well-managed associations plan these expenses years in advance and build adequate reserves rather than imposing sudden special assessments on owners.

Examine the association's management structure and decision-making processes. Associations with professional management companies typically maintain better financial records and long-term planning than those relying solely on volunteer boards.

Consider consulting a financial advisor experienced with Swedish BRF analysis if the association manages a large building or shows any warning signs. The monthly fee you'll pay covers building maintenance, utilities, insurance, and reserve contributions, so understanding the association's financial trajectory is crucial for budgeting future housing costs.

What do I need to know about property taxes and ongoing monthly fees in Sweden?

The annual property charge (fastighetsavgift) equals 0.75% of the property's assessed value, with a maximum cap of approximately 10,074 SEK for 2025.

For apartment owners in bostadsrättsföreningar, monthly fees typically range from 3,000-8,000 SEK depending on apartment size and building amenities. These fees cover building maintenance, water, heating, property insurance, and contributions to the association's reserve fund for major repairs and improvements.

House owners pay property charges directly to the tax authority and handle all utility costs, maintenance, and insurance independently. This often results in higher monthly housing costs than comparable apartments, but provides more control over expenses and property improvements.

New construction properties may qualify for temporary exemptions from property charges for the first few years. Check with the municipality about any applicable exemptions when considering newly built properties.

Budget for annual increases in both property charges and BRF fees, as these typically rise with inflation and increased maintenance costs. Well-managed associations communicate fee increases well in advance through their annual planning process.

How competitive are bidding wars in Sweden and how can I avoid overpaying during the process?

Swedish property bidding follows an open ascending auction format where all bids are visible to participants, but bids remain non-binding until contracts are signed, creating risks of "auction fever" and inflated prices.

Bidding wars are particularly intense in Stockholm, Gothenburg, and other major cities where properties often sell for 10-20% above asking prices. Non-serious bidders sometimes participate to drive up prices without intention to complete purchases, artificially inflating the bidding process.

Research recent comparable sales in the specific neighborhood before participating in any bidding. Swedish property websites like Hemnet provide detailed sales history that helps establish realistic market values. Set a strict maximum bid based on your financial capacity and comparable sales data, not on emotional attachment to the property.

Remember that winning a bid doesn't guarantee purchase completion since Swedish law allows bid withdrawal until contract signing. This creates opportunities for strategic bidding but also risks of deals falling through after you've committed emotionally and financially to a property.

Consider timing your serious bids toward the end of bidding periods when non-serious participants often drop out. Avoid participating in early bidding rounds that may only serve to establish higher baseline prices for the final auction phase.

How do I confirm the actual square meters of the property and ensure they match the listing?

Cross-reference the listing square footage against official records maintained by Lantmäteriet and request physical measurement verification during your technical inspection.

Swedish property measurements can vary depending on whether they include storage areas, balconies, or basement spaces, leading to discrepancies between advertised and actual living space. Older properties particularly may have measurement inconsistencies due to renovations or different historical measurement standards.

Have your independent inspector measure key rooms and total floor area to verify accuracy. Significant discrepancies affect property value and can indicate deeper issues with property documentation or intentional misrepresentation by sellers.

Review how the square footage is calculated in the listing—some may include common areas in apartment buildings or outdoor spaces that don't contribute to actual living space. Swedish standards typically measure "boarea" (living area) separately from storage and common spaces.

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 is the best way to check the neighborhood for transport, schools, and future development plans?

Visit the neighborhood at different times of day and week to observe traffic patterns, noise levels, public transport frequency, and general safety conditions firsthand.

Research local schools through the municipality website and national school rating databases if you have children or plan to rent to families. Swedish school quality varies significantly between districts, affecting both livability and property values.

Check public transport accessibility and frequency, particularly for connections to major employment centers. Properties within walking distance of commuter rail stations (pendeltåg) or subway lines typically maintain better value appreciation than those requiring bus connections.

Contact the local kommun (municipality) planning department to review approved and proposed development projects in the area. Large construction projects, new shopping centers, or infrastructure changes can significantly impact property values and living quality.

Investigate local amenities like grocery stores, healthcare facilities, parks, and cultural venues. Swedish neighborhoods with good walkability and local services tend to maintain stronger property values and rental demand over time.

How long does the buying process usually take in Sweden from offer to getting the keys?

The Swedish property purchase process typically takes 4-8 weeks from accepted offer to receiving keys, but complex transactions or financing delays can extend this timeline.

Key timeline phases include contract signing and deposit payment (1-2 weeks after offer acceptance), mortgage approval and documentation (2-3 weeks), technical inspection and due diligence (1-2 weeks), and final registration with Lantmäteriet (1-2 weeks after closing).

Foreign buyers often experience longer timelines due to additional documentation requirements for mortgage approval and potential delays in international money transfers. Plan for 6-10 weeks if you're obtaining financing as a non-resident or recent Swedish resident.

The process can accelerate if you have pre-approved financing and waive contingencies like technical inspections, but this increases your risk exposure significantly. Most property lawyers recommend maintaining standard timelines to ensure proper due diligence.

Seasonal factors can affect timelines, with summer purchases often taking longer due to vacation schedules affecting banks, lawyers, and government offices involved in the transaction process.

What clauses should I insist on in the contract to protect myself if something goes wrong?

Include a technical inspection contingency clause (besiktningsklausul) that allows contract withdrawal or price renegotiation if the inspection reveals major defects or safety issues.

Insist on explicit confirmation that the property transfers free from all hidden debts, liens, and third-party claims, with specific penalties if undisclosed liabilities emerge after closing. The contract should clearly specify which party bears responsibility for any outstanding utility bills, taxes, or association fees through the transfer date.

Specify exact completion dates with financial penalties for delays by either party. This protects you from sellers who might delay closing while market conditions change, and ensures you can plan moving and financing arrangements with certainty.

Include clauses addressing what happens if financing falls through despite good faith efforts, particularly important for foreign buyers who may face unexpected mortgage approval challenges. The contract should specify deposit return procedures and timeline limits for loan approval.

Add provisions for liability division regarding pre-completion property damage from events like fire, flooding, or vandalism. Ensure the seller maintains adequate insurance coverage until legal transfer occurs.

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. Wise - Mortgage in Sweden
2. Career Sweden - Complete Guide to Buying an Apartment in Stockholm
3. DLA Piper - Real Estate Ownership in Sweden
4. Lantmäteriet - Stamp Duties and Fees
5. Skatteverket - Property Charge and Property Tax
6. Boverket - Building Regulations
7. CACS Sweden - House Survey Services
8. Advokat Segerström - Hidden Defects in Sweden