Buying a holiday home in Sweden: How to make your dream come true

A holiday home in Sweden as an idyllic retreat for the annual vacation - that's what many people dream of. If you want to fulfill this dream: Here are some tips to help you buy the property.

A holiday home in Sweden is a great way to spend your summer vacation amidst nature and beautiful landscapes. Anglers, recreational athletes or nature lovers in particular have discovered the largest Scandinavian country for themselves and are enthusiastic about the beauty of the landscapes. If you decide to go on holiday to Sweden regularly, you can consider buying a holiday home - possibly one of the typical red Sweden houses.

The most popular places in Sweden are in the south, which is why property prices there are significantly higher than in the quieter north. In the following, we will explain how to find your dream property and what you need for it.

Sweden is the largest Scandinavian country in Northern Europe and impresses with impressive landscapes. Mountains, lakes, pretty castles or forests, Sweden is the ideal travel destination for nature lovers.

Photo: visualpower / Fotolia.de

Acquisition and residence permit

Since January 1, 2000, a purchase permit is no longer required when buying a holiday home. This also applies to previously difficult-to-acquire, attractive locations such as right on a lake. In the case of building plots, only the building permit of the corresponding municipal administration has to be obtained.

Many people dream of a typical red Sweden house as a holiday home. The origin of the so-called Falunrot dates back to the 18th century. The color was created as a by-product of copper mining and protects the wood against the weather.

Photo: MSG / Susann Hayn

A residence permit has also no longer been required for EU citizens since May 1, 2006. This means that you can start working in Sweden and only have to register with the nearest migration office (Migrationsverket) within the first three months after your arrival. For this you need certified copies of your valid passport or identity card, a employment certificate stating the work tasks and the weekly working hours of your Swedish employer as well as their address, telephone number and organizational number. Family members (spouse, significant other, children), provided they are also EU / EWS citizens, must also register on site.

How to find a suitable property

estate agents

Brokers often handle the entire purchase in Sweden. So check carefully which broker you trust. The brokerage fee is usually borne by the seller in Sweden.

Newspapers

Every national German daily newspaper is regularly (mostly on weekends) with a real estate section in which foreign real estate is also offered for sale. Swedish regional newspapers contain real estate offers from the respective region.

The purchase decision

If you have found a suitable property, you should first take a look at the property register (fastighetsregister). This is usually available to the broker or he can call it up online. Since July 1, 2000, all important information on land has been entered in the property register. It is managed by the central state surveying authority (lantmäteriverket) in Gävle.

You also no longer need a work permit for building plots on a lake. It is sufficient to obtain the building permit from the corresponding municipal administration.

Photo: MSG / Susann Hayn

The purchase agreement

If you decide to buy, a purchase contract is drawn up with the responsible broker. A lot of brokers are now geared towards German home buyers and can either speak German themselves or have someone who translates for them.

Sales contracts are private in Sweden, i.e. without a notarized certification. A deposit, the so-called handpenning, of 10 percent of the purchase price is due upon signing. If the purchase is not made for reasons for which the purchaser is responsible, the deposit will be retained.

Care should be taken when drafting the contract. Many sales contracts contain a clause according to which the buyer takes responsibility for defects in the property himself. This regulation represents a financial risk for the buyer and should therefore be deleted from the contract. To avoid risks and uncertainties - not least because of the language barrier - you can contact a Swedish specialist lawyer (lawyer). You can obtain addresses from the German-Swedish Chamber of Commerce in Stockholm.

The purchase letter

The transfer date of the property is regulated in the purchase contract. On this day the purchase letter (Köpebrev) is signed and the remaining purchase price is paid. With the signing of the purchase letter by both parties, the change of ownership is completed. Two witnesses usually have to certify the process. The following entry in the land register has only a declaratory character. The buyer must apply for it within three months of the conclusion of the contract. The date of filing of applications for registration is decisive for the rank of various property rights.

The funding

For foreign real estate you should always bring 40 to 50 percent of the purchase price (plus additional costs) in own funds. The rest may be financed through a mortgage from a Swedish bank. It is best to find out about the current interest rate level from the banks or on the Internet. Financing a Swedish property in Germany, on the other hand, is rather difficult.

Due to the new regulation of the building society law, it is possible under certain conditions to use a German building society contract for the financing of a property in an EU country that has comparable mortgage lending modalities as Germany.

Taxes and Fees

The following fees must be expected when buying a holiday home in Sweden:

• Real estate transfer tax (stamp duty): 1.5 percent of the purchase price
• Entry in the land register: approx. 100 euros
• Fastighets tax: 1 percent of the tax valuation value
• Garbage collection fees
• Fees for membership in a summer house and property association
• Fees for the maintenance of the connection routes to the property

The tax return is to be submitted annually to the tax authority in Sweden. The forms will be sent automatically. The tax authority regularly sets the unit value.

If you additionally order a lien, the following costs are added:

• Costs for the property valuation: approx. 400 euros
• Fees for the reissue of a Pfandbrief: two percent (there are no costs if existing Pfandbriefe are taken over)

Electricity, water and waste disposal

The electricity and water supply, as well as the waste water disposal and waste disposal must be registered in time for the new owner.

Own bank account in Sweden

To make regular payments easy, opening an account with a Swedish credit institution is essential. However, this is not a problem, because normally only the presentation of an identity card is required.

Pets

Due to an amendment to the law in Sweden, it has been possible for some years to bring pets into the country without first having to go through a six-month quarantine period. Nevertheless, you should definitely inform the Swedish authorities (customs) about the import regulations and prepare the animal in good time for entry. Do not forget the necessary vaccinations and the necessary papers!

Pets are also allowed to be imported into Sweden. Nevertheless, you should get information from the authorities about the exact regulations.

Photo: amidala / Fotolia.de

Tax implications

The tax effects of a place of residence or an object abroad are based on the double taxation agreement between the Federal Republic of Germany and Sweden. The tax office responsible for you in Germany can give you more information.