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Everything you need to know before buying real estate is included in our Sweden Property Pack
Sweden offers significantly better value for property investors compared to Norway, with lower purchase prices per square meter, higher rental yields, and more accessible mortgage financing for foreigners.
Property prices in Sweden are generally 20-30% lower than Norway in comparable cities, while rental yields in Swedish cities consistently outperform Norwegian markets by 1-2 percentage points. Sweden also provides easier mortgage access for international buyers with interest rates nearly half of Norway's current levels.
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.
Sweden consistently outperforms Norway for property investment with lower entry costs, higher yields, and better financing options for international buyers.
Norwegian property markets offer stronger long-term appreciation but require significantly higher initial capital and face stricter lending conditions for foreign investors.
| Aspect | Sweden | Norway |
|---|---|---|
| Price per sqm (Capital) | €7,700-€9,744 (Stockholm) | €7,900-€8,800 (Oslo) |
| Average Rental Yields | 5-6% | 3-5% |
| Annual Property Taxes | €825 maximum cap | Often 0% (some cities charge) |
| Mortgage Rates (2025) | 2.8-3.2% | 5.6% |
| Closing Costs | 3-4% of purchase price | 3.6% of purchase price |
| Foreign Buyer Restrictions | None | None |
| Cost of Living (Monthly) | €1,715-€2,230 | €2,210+ (25-30% higher) |
How much does it actually cost per square meter to buy property in Sweden compared to Norway?
Property prices per square meter in Sweden are consistently lower than Norway across all major cities, with Stockholm averaging €7,700-€9,744 per square meter compared to Oslo's €7,900-€8,800 per square meter.
Regional Swedish cities offer even better value propositions. Gothenburg properties cost €4,700-€5,446 per square meter, while Bergen in Norway costs €5,300-€6,200 per square meter. Malmö presents the most affordable option at €2,500-€2,750 per square meter, significantly below any major Norwegian city.
The price differential becomes more pronounced when comparing secondary cities. Swedish regional markets consistently price properties 15-25% below their Norwegian counterparts of similar size and economic importance. This gap has widened since 2023 as Norwegian property prices continued rising while Swedish markets stabilized.
As of September 2025, the Swedish property market offers better entry points for international investors seeking comparable urban amenities and infrastructure quality. Stockholm provides similar metropolitan benefits to Oslo but at lower per-square-meter costs.
What are the average rental yields in the main cities of Sweden versus Norway?
Swedish property markets deliver substantially higher rental yields than Norwegian cities, with national averages reaching 5.6% gross yield compared to Norway's typical 3-5% range.
Stockholm generates 4-5.7% rental yields, with higher returns available outside prime downtown areas. Gothenburg consistently produces 5-7% yields, while Malmö and Uppsala deliver 6-7% gross returns for residential properties.
Norwegian rental yields remain constrained by high property purchase prices. Oslo city center yields often fall below 4%, though suburban areas can reach 5%. Bergen and Trondheim typically generate 4-5% yields, but these figures reflect gross calculations before Norwegian tax implications.
The yield advantage in Sweden stems from more balanced property pricing relative to rental income potential. Swedish secondary cities particularly outperform Norwegian equivalents, making them attractive for buy-to-let strategies.
It's something we develop in our Sweden property pack.
How high are the property taxes and annual ownership costs in each country?
Sweden maintains significantly lower annual property ownership costs with a capped annual tax of €825 maximum, regardless of property value.
Swedish property owners pay annual municipal tax capped at SEK 8,524-9,287 (approximately €825) for 2025, plus insurance costs of €500-1,500 annually and condominium association fees where applicable. Sweden eliminated wealth taxes on property, reducing ongoing ownership burdens.
Norway typically charges no annual property tax in most municipalities, but imposes a substantial 2.5% stamp duty on purchase. However, cities like Bergen and Trondheim levy annual property taxes of 0.2-0.7% of assessed value, which can significantly exceed Sweden's capped rates on expensive properties.
Overall ownership costs favor Sweden due to predictable, capped annual expenses. Norwegian properties face higher transaction costs upfront and potentially unlimited annual taxes in certain municipalities, making long-term cost planning more challenging.
What are the rules for foreigners buying property in Sweden compared to Norway?
Both Sweden and Norway impose no restrictions on foreign property ownership, allowing international buyers to purchase residential real estate without residency requirements or nationality limitations.
Foreign nationals can buy apartments, houses, and land in both countries without obtaining special permits or demonstrating local ties. Neither country requires visa status, work permits, or minimum investment thresholds for property purchases.
Agricultural land and certain heritage properties may have limited exceptions in both countries, but these rarely affect typical residential real estate transactions. Property ownership does not automatically confer residency rights in either Sweden or Norway.
The purchasing process remains identical for foreign and domestic buyers, with the same legal protections and obligations applying regardless of nationality. Both countries maintain transparent, foreigner-friendly property laws designed to attract international investment.
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How easy is it to get a mortgage as a foreigner in each country, and what are the average interest rates?
Sweden offers significantly easier mortgage access for foreign buyers with substantially lower interest rates of 2.8-3.2% compared to Norway's 5.6% average rates as of September 2025.
Swedish banks provide mortgages to foreigners who obtain Swedish personal identification numbers and demonstrate local income sources. Minimum down payments start at 15% for non-residents, though 20-25% deposits improve approval chances and rate offers.
Norwegian mortgage approval proves much stricter for non-residents. Banks strongly prefer applicants with Norwegian income history and residency of at least two years. Down payment requirements range from 15-25%, but approval rates remain low without established Norwegian financial relationships.
The interest rate differential creates substantial long-term cost advantages for Swedish property investments. A €500,000 mortgage costs approximately €7,000-8,000 less annually in Sweden compared to Norway, significantly improving investment returns.
Swedish mortgage terms typically extend to 50 years with flexible repayment options, while Norwegian loans generally limit terms to 25-30 years with stricter amortization requirements.
What are the closing costs and legal fees when purchasing property in Sweden versus Norway?
| Cost Component | Sweden | Norway |
|---|---|---|
| Stamp Duty/Transfer Tax | 1.5% | 2.5% |
| Legal/Notary Fees | €1,000-€2,000 | 1% legal + 0.1% notary |
| Total Buyer Costs | 3-4% of purchase price | 3.6% of purchase price |
| Real Estate Commission | 3-5% (seller pays) | 1-3% (seller pays) |
| Property Survey | €500-€1,000 | €800-€1,500 |
| Registration Fees | €200-€400 | €300-€600 |
| Mortgage Arrangement | €1,000-€2,000 | €1,500-€3,000 |
How stable have property prices been over the last 10 years in both countries?
Norwegian property markets demonstrated stronger but more volatile price growth over the past decade, with national increases of approximately 67% since 2015, while Swedish properties rose more moderately at around 50%.
Oslo property prices doubled between 2015-2024, creating substantial wealth for early investors but raising affordability concerns. Swedish markets experienced steadier appreciation with brief corrections in 2022-2023 before stabilizing.
Price volatility in Norway reflects economic cycles tied to oil revenues and interest rate fluctuations. Swedish property markets showed greater resilience during global uncertainty, with more predictable annual growth patterns averaging 3-5%.
As of September 2025, both markets have stabilized after post-pandemic volatility. Swedish properties show renewed growth momentum, while Norwegian markets are cooling from previous peaks but maintaining underlying strength in major cities.
It's something we develop in our Sweden property pack.
What is the long-term outlook for property value growth in Sweden compared to Norway?
Swedish property markets are forecast to grow 2-5% annually through 2030, supported by central bank rate cuts and strong demand in technology cluster cities like Stockholm and Gothenburg.
Norway expects continued but slower growth due to persistently high interest rates and tighter borrowing conditions. Oslo and Bergen project stable performance driven by economic fundamentals, but growth rates may moderate below historical averages.
Swedish regional cities present particular growth opportunities as urbanization continues and remote work trends support secondary city development. Malmö, Uppsala, and Linköping show strong potential for above-average appreciation.
Norwegian property outlook remains positive but faces headwinds from affordability constraints and potential oil market volatility. Bergen and Trondheim offer more stable prospects than Oslo, which may see price growth plateau.
Demographics favor Sweden's long-term outlook with younger population trends and higher immigration rates supporting housing demand. Norway's aging population and geographic constraints may limit growth potential in key markets.
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 expensive is the cost of living in the main property markets of each country?
Norway maintains significantly higher living costs, with average monthly expenses of €2,210 nationally and Oslo/Bergen typically costing 25-30% more than comparable Swedish cities.
Stockholm costs approximately €2,230 monthly for moderate living standards, while Gothenburg averages €1,827 and Malmö €1,715. These figures include housing, food, transportation, and basic services for single professionals.
Norwegian cities consistently rank among Europe's most expensive for daily expenses. Grocery costs, dining, and services in Oslo can exceed Stockholm prices by 40-50%, significantly impacting residents' disposable income.
Transportation costs favor Sweden with comprehensive public transit systems priced below Norwegian equivalents. Healthcare and education remain excellent and affordable in both countries through public systems.
For property investors considering personal relocation, Sweden offers better value for money while maintaining similar quality of life standards. The cost differential particularly benefits families and retirees with fixed incomes.
What are the rental demand and average vacancy rates in Sweden versus Norway?
Swedish major cities maintain extremely low vacancy rates below 2% in Stockholm, Gothenburg, Malmö, and Uppsala, driven by continued urbanization and population growth.
Rental demand surges in Swedish university cities and technology hubs, creating favorable conditions for landlords. Stockholm's rental market particularly benefits from international company relocations and student populations.
Norwegian rental markets are cooling since 2022, with vacancy rates increasing from historic lows in most cities. Prime urban properties in Oslo and Bergen still command strong demand, but mid-tier and peripheral areas face rising vacancy challenges.
Swedish rental regulations provide balanced landlord-tenant protections, while Norwegian markets face stricter rent control measures that can limit income growth potential for property owners.
Long-term rental demand outlook favors Sweden due to stronger population growth, immigration trends, and economic diversification supporting sustained housing needs across multiple cities.
How strong is the job market and economy in each country, since that affects property demand?
Both countries maintain robust employment markets, but Sweden's diversified economy across technology, manufacturing, and finance sectors provides more balanced property demand drivers than Norway's energy-dependent economy.
Swedish unemployment remains low with steady wage growth, particularly in Stockholm's technology sector and Gothenburg's automotive industry. The economy demonstrates resilience against global volatility with balanced export markets and domestic consumption.
Norway's labor market remains strong but shows slight contraction in 2023-2024 before projected stabilization. The economy's dependence on energy and maritime sectors creates cyclical employment patterns that influence regional property demand.
Stockholm continues attracting international talent and investment, supporting sustained property demand from high-income professionals. Norwegian cities benefit from high wages but face economic uncertainty tied to global energy markets.
Economic forecasts favor Sweden's long-term stability with projected GDP growth and employment levels supporting consistent property market fundamentals through 2030.
It's something we develop in our Sweden property pack.
How does the quality of life, healthcare, education, and infrastructure compare between Sweden and Norway for someone planning to live there?
Both countries consistently rank among the world's top destinations for quality of life, healthcare, education, and infrastructure, with Sweden typically scoring higher for urban connectivity and innovation while Norway excels in environmental quality and social services.
Healthcare systems in both countries provide universal coverage with minimal costs to residents. Swedish healthcare emphasizes preventive care and digital integration, while Norwegian systems offer comprehensive coverage with slightly higher per-capita spending.
Education quality remains exceptional in both countries, with free university education and strong international rankings. Swedish universities attract more international students, while Norwegian institutions benefit from oil-funded research investments.
Infrastructure quality favors Sweden for urban transportation and digital connectivity. Stockholm's public transit system and nationwide broadband coverage exceed Norwegian equivalents, though Norway maintains superior rural infrastructure due to geographic necessities.
Environmental quality gives Norway slight advantages with pristine natural areas and lower pollution levels, while Sweden offers better urban planning and sustainable city development initiatives.
Social services and work-life balance remain excellent in both countries, with generous parental leave, worker protections, and cultural emphasis on personal well-being supporting high living standards for residents.
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 emerges as the superior choice for most property investors seeking better value, higher yields, and easier financing access compared to Norway's higher-cost, volatile markets.
Norwegian properties offer stronger long-term appreciation potential but require significantly higher initial capital and face stricter lending conditions that may limit investment opportunities for international buyers.
Sources
- Sweden Price Forecasts
- Average House Price in Norway
- Global Property Guide - Sweden Rental Yields
- Global Property Guide - Norway Square Meter Prices
- Property Taxes in Every European Country
- Buying House Sweden
- How to Buy Property Norway
- Norway Real Estate Foreigner
- Trading Economics - Sweden Mortgage Rate
- The Global Economy - Norway Mortgage Interest Rate