Housing in Sweden: Renting and Buying a Home

The Swedish housing market works differently from that of many other countries. Housing is scarce in the big cities, whereas in the countryside there are houses at prices that people in much of Central Europe can only dream of. If you are moving to Sweden or want to buy a holiday home, you should know the three forms of housing. This page provides an overview and does not replace legal or financial advice.

Renting: hyresrätt

A rental flat is called a hyresrätt. Rents are regulated and negotiated between landlords and the tenants’ association. The catch: flats with a regular first-hand tenancy agreement are mostly allocated through waiting lists (bostadskö). In Stockholm and Gothenburg, the waiting time is often many years.

Newcomers therefore frequently rent a sublet, known in Swedish as andrahand. Such contracts are fixed-term and more expensive. Be careful with offers on the internet: never pay a deposit before you have seen the flat and received a written contract. In smaller towns and in the countryside, finding a rental flat is considerably easier.

Bostadsrätt: the right of occupancy

Most flats in the cities are bostadsrätter. Here you do not buy the flat itself but a share in a housing cooperative, and with it the right to use a particular flat. In addition to the purchase price, you pay a monthly fee (avgift) to the cooperative, which covers running costs, maintenance and the cooperative’s debts. Check the annual report before buying: a heavily indebted cooperative may raise the fee considerably later on.

Your own house: villa and holiday home

Detached houses and holiday homes are bought together with the land as freehold property. Foreigners may acquire property in Sweden without special permission, including as a holiday home. Prices vary enormously: they are high in the Greater Stockholm area and very low in sparsely populated parts of central and northern Sweden.

How buying works

1. Search: almost all listings appear on the big property portals online. Sales are handled by estate agents, who are paid by the seller.
2. Viewing: there are fixed viewing times (visning) to which all interested parties come.
3. Bidding: the advertised price is only a starting price. After that, interested parties bid against each other, often by text message or app. Bids are not binding until the contract has been signed.
4. Inspection by a surveyor: buyers have an extensive duty to inspect. You should therefore have a house checked by an expert before buying.
5. Purchase contract: on signing, a down payment of around ten per cent is usually due. A notary is not required.
6. Handover: on the agreed day you pay the rest and receive the keys.

Additional costs and financing

When buying a house, a stamp duty based on the purchase price is payable for registration as the owner (lagfart). If you take out a loan, you also pay fees for the mortgage deeds (pantbrev). Swedish banks require a deposit and, as a rule, an income in Sweden and a personnummer. The exact conditions and loan-to-value limits change, so ask the bank directly. There is also an ongoing municipal property fee, which is capped.

Tips for newcomers

• Sign up for the municipality’s waiting lists early, even if you live elsewhere at first.
• Ask your employer. Many companies help with the first flat.
• Rent first and only buy once you know the area.
• For houses in the countryside, factor in the costs of heating, wells, sewage and snow clearance.

Registration and the personnummer are explained on the page Moving to Sweden.