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Everything you need to know before buying real estate is included in our Sweden Property Pack
Sweden welcomes foreign property buyers with open arms, but getting a mortgage as a non-resident is significantly more challenging.
While there are no ownership restrictions for foreigners, Swedish banks typically require local employment, a personal ID number, and higher deposits to approve mortgages for international buyers.
If you want to go deeper, you can check our pack of documents related to the real estate market in Sweden, based on reliable facts and data, not opinions or rumors.
Foreigners can buy property freely in Sweden but face stricter mortgage conditions than residents.
Most banks require Swedish employment and a personal ID number, with deposit requirements typically 20-40% for non-residents.
| Aspect | Swedish Residents | Foreigners |
|---|---|---|
| Property Purchase Rights | Unrestricted | Unrestricted |
| Maximum Mortgage (LTV) | 85-90% | 60-80% |
| Minimum Deposit | 15% | 20-40% |
| Interest Rates | ~3.1% | 3.1-4%+ |
| Personal ID Required | Yes | Usually Required |
| Local Employment | Preferred | Usually Required |
| Total Purchase Costs | 2.6-5.85% | 2.6-5.85% + extras |
Can foreigners buy property in Sweden without restrictions?
Yes, foreigners can purchase property in Sweden without any ownership restrictions.
Sweden has one of the most open property markets in Europe, allowing both EU and non-EU citizens to buy residential, commercial, and agricultural properties without requiring residency, work permits, or visas. This applies to all types of real estate including apartments, houses, and land.
The Swedish government treats foreign buyers equally to Swedish citizens when it comes to property ownership rights. There are no nationality-based limitations, quotas, or special approval processes that foreigners must navigate before purchasing real estate.
However, certain agricultural or forestry land may require special permits, but these restrictions apply equally to both Swedish citizens and foreigners. Property ownership also does not grant any immigration benefits or residency rights in Sweden.
It's something we develop in our Sweden property pack.
What is the maximum mortgage percentage foreigners can usually get in Sweden?
Foreigners typically receive mortgages with a maximum loan-to-value ratio of 60-80%, compared to the 85-90% available to Swedish residents.
Swedish banks generally cap mortgages at 85% LTV for residents, requiring a minimum 15% deposit. However, foreign buyers without Swedish employment or a personal ID number often face stricter terms, with many banks requiring deposits of 20-40% of the property value.
As of September 2025, the Swedish government has proposed raising the LTV cap to 90% for some first-time buyers, but these more favorable terms primarily benefit Swedish residents and those with established local financial profiles.
Banks assess foreign buyers as higher risk due to potential income verification challenges, lack of local credit history, and difficulty in legal recourse if payments default. This risk assessment translates directly into lower maximum mortgage percentages and higher deposit requirements.
How much deposit do banks in Sweden typically require from foreigners?
Swedish banks typically require deposits of 20-40% from foreign buyers, significantly higher than the 15% minimum for residents.
The exact deposit amount depends on several factors including the buyer's employment status in Sweden, whether they hold a Swedish personal ID number (personnummer), and their overall financial profile. Foreigners with Swedish employment may secure deposits closer to 20-25%, while those purchasing from abroad often face requirements of 30-40%.
Some banks may demand even higher deposits of up to 50% for buyers who cannot demonstrate strong ties to Sweden through employment or long-term residency. This reflects the banks' risk management policies when dealing with international buyers who may have limited recourse options.
Cash purchases are common among foreign buyers who cannot meet the stringent mortgage requirements, particularly for investment properties or vacation homes in popular areas like Stockholm, Gothenburg, or ski resort regions.
Are mortgage conditions different for EU citizens compared to non-EU citizens?
Mortgage conditions are generally the same for EU and non-EU citizens, as Swedish banks focus more on local financial ties than citizenship status.
While there are no official restrictions differentiating EU from non-EU buyers in terms of property purchase rights, mortgage approval depends primarily on having Swedish employment, a personal ID number, and demonstrable local income sources.
EU citizens may have a slight advantage if they have established Swedish residency and employment, as they can more easily obtain a personnummer and build a local credit history. However, an EU citizen purchasing from abroad faces similar challenges to a non-EU citizen without Swedish ties.
The key differentiating factors for mortgage approval are local employment history, Swedish tax returns, and the ability to demonstrate ongoing income from Swedish sources rather than passport nationality. Banks evaluate all foreign applicants using similar risk assessment criteria regardless of their citizenship status.
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Do Swedish banks require foreigners to have permanent residency or just a work permit?
Most Swedish banks require at least a valid work permit tied to a Swedish employer, though permanent residency significantly improves approval chances.
Banks typically demand proof of stable Swedish employment through either a work permit or permanent residency status. A temporary work permit may be sufficient if it demonstrates ongoing employment with a Swedish company and regular Swedish-sourced income.
Permanent residency provides the strongest foundation for mortgage approval as it indicates long-term commitment to Sweden and reduces the bank's perceived risk of the borrower leaving the country. Permanent residents also have easier access to Swedish personal ID numbers, which are crucial for the mortgage process.
Tourist visas or short-term visitor status are generally insufficient for mortgage approval. Banks need evidence of legal authority to work and reside in Sweden for an extended period to justify the long-term nature of mortgage lending.
What is the minimum income level banks in Sweden want to see for mortgage approval?
Swedish banks typically approve mortgages up to 4.5-5 times annual gross income, requiring stable employment and Swedish tax documentation.
For a mortgage of 3 million SEK (approximately €275,000), banks would generally require annual gross income of 600,000-670,000 SEK (€55,000-61,000). This income must be verifiable through Swedish tax returns, employment contracts, and bank statements showing regular salary deposits.
Foreign buyers must demonstrate income stability over at least 12-24 months, with preference given to permanent employment contracts rather than temporary or consulting arrangements. Self-employed foreigners face additional scrutiny and may need 2-3 years of Swedish tax returns.
Banks also evaluate the borrower's overall financial situation including existing debts, monthly expenses, and ability to maintain mortgage payments alongside Sweden's relatively high cost of living, particularly in major cities like Stockholm where housing costs consume a significant portion of income.
It's something we develop in our Sweden property pack.
How much debt-to-income ratio is usually acceptable in Sweden for foreigners applying?
Swedish banks generally accept debt-to-income ratios of 4.5-5:1 for foreign applicants, though stricter terms may apply compared to residents.
This means total debt payments, including the proposed mortgage, should not exceed 4.5-5 times the borrower's annual gross income. For someone earning 600,000 SEK annually, maximum acceptable debt would be approximately 2.7-3 million SEK.
Foreign buyers often face more conservative ratios around 4:1 due to perceived higher risk factors such as potential currency fluctuations if income comes from abroad, job security concerns, and difficulties in debt collection if the borrower relocates.
Banks also consider the borrower's monthly debt service ratio, typically requiring that total monthly debt payments not exceed 50-60% of monthly gross income. This includes existing loans, credit cards, and the proposed mortgage payment.
Do Swedish banks require a local bank account before granting a mortgage?
Yes, Swedish banks typically require borrowers to maintain a local Swedish bank account before approving a mortgage.
Opening a Swedish bank account usually requires a personal ID number (personnummer), which is obtained through residency or work permit registration with Swedish authorities. This creates a prerequisite chain where foreigners need legal residency status before accessing banking services.
The local bank account serves multiple purposes including demonstrating financial behavior in Sweden, providing a mechanism for mortgage payments, and allowing banks to monitor ongoing financial activity. Banks use account history to assess spending patterns, income regularity, and financial responsibility.
Some international banks with Swedish operations may offer alternatives for high-net-worth clients, but mainstream mortgage lending typically requires established local banking relationships and demonstrated financial integration into the Swedish financial system.
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What interest rates can foreigners expect compared to Swedish citizens?
Foreign buyers can expect mortgage interest rates 0.1-0.9 percentage points higher than Swedish citizens, depending on their risk profile.
As of September 2025, average Swedish mortgage rates hover around 3.1% for residents with strong credit profiles. Foreign buyers typically see rates ranging from 3.2% to 4.0% or higher, depending on factors such as deposit size, employment status, and overall financial strength.
Banks apply risk premiums to foreign borrowers due to perceived higher default risk, potential income volatility, and increased administrative complexity. Buyers with larger deposits (30-40%) and strong Swedish employment may secure rates closer to standard market rates.
Variable rate mortgages are common in Sweden, meaning these rates can fluctuate based on central bank policy changes. Foreign buyers should factor potential rate increases into their financial planning, as Swedish mortgage rates have historically been volatile.
Are there specific Swedish banks or lenders that are more open to foreign buyers?
Major Swedish banks including Swedbank, SEB, Handelsbanken, and Nordea offer mortgages to foreign buyers, though with stricter requirements than for residents.
| Bank | Foreign Buyer Policy | Key Requirements |
|---|---|---|
| Swedbank | Selective approval | Swedish employment + personnummer |
| SEB | International focus | Higher deposits, local income |
| Handelsbanken | Case-by-case | Strong financial profile required |
| Nordea | Nordic residents | Preference for Nordic citizens |
| International lenders | High-net-worth | Large deposits, premium rates |
Some specialized mortgage brokers and international lenders focus specifically on foreign buyers, though they typically require larger deposits and charge premium rates. These services are particularly useful for buyers purchasing investment properties or vacation homes.
Cash purchases remain the most straightforward option for many foreign buyers, particularly those investing in Swedish real estate without plans to relocate permanently to Sweden.
Do foreigners need to prove their credit history from their home country?
Yes, Swedish banks typically require foreign buyers to provide credit history and financial documentation from their home country.
Required documentation usually includes credit reports from major credit agencies in the buyer's home country, bank statements covering 6-12 months, tax returns for 2-3 years, and employment verification letters. These documents often need official translation into Swedish or English.
Banks use home country credit history to assess the borrower's financial responsibility and payment patterns, particularly important for applicants without Swedish credit history. However, foreign credit scores may not directly translate to Swedish lending criteria.
Additional documentation requirements include proof of existing assets, investment portfolios, and any outstanding debts or financial obligations in the home country. This comprehensive financial profile helps banks evaluate the overall risk of lending to foreign applicants.
It's something we develop in our Sweden property pack.
What extra fees, taxes, or costs should foreigners expect when getting a mortgage in Sweden?
Foreign buyers should budget for total purchase costs of 2.6-5.85% of the property value, plus additional fees for international transactions.
- Stamp duty (lagfart): 1.5% of purchase price
- Property registration fee: Approximately 825 SEK
- Legal fees: 10,000-25,000 SEK for foreign buyers
- Mortgage arrangement fees: 5,000-15,000 SEK
- Property valuation: 3,000-8,000 SEK
- Document translation: 2,000-5,000 SEK
- Currency exchange costs: 0.5-2% of transaction value
- International wire transfer fees: 500-2,000 SEK
Additional costs specific to foreign buyers include document authentication and apostille services, international legal consultation, and potential costs for establishing Swedish banking relationships.
Ongoing costs include annual property tax (kommunalskatt) varying by municipality, building insurance requirements, and potential property management fees if the property is used as an investment.
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.
Sweden offers excellent opportunities for foreign property buyers, but mortgage approval requires careful planning and local financial integration.
Success typically depends on establishing Swedish employment, obtaining a personal ID number, and building relationships with local banks well before making purchase decisions.
Sources
- InvestRopa - Foreigners Buy Land Sweden
- InvestRopa - Buying House Sweden
- Veles Club - Sweden Property Guide
- Immigrant Invest - Sweden Real Estate Guide
- MonoEstate - Legal Aspects Sweden Property
- InvestRopa - Americans Buy Property Sweden
- Ace Money Transfer - Foreigners Buy Property Sweden
- Wise - Mortgage in Sweden
- Reuters - Swedish Mortgage Rules 2025
- Reddit - Swedish Mortgages Discussion