additional costs with Swedish mortgages

Swedish Mortgages

As a general rule, Swedish mortgage providers will offer a loan of up to 75 percent of the value of the property. Generally, mortgages in Sweden are offered on fixed rates over a period of approximately 20 years.

Additional Costs

Get a Free Quote The Cost of Buying Property in Sweden
The property purchasing process in Sweden is so straightforward that, in general, additional costs are also kept to a minimum. There are, of course, the usual governmental costs such as taxation and fees to take into account, but most other expenses are optional.

Resist the temptation to do away with all of the optional services as, in many cases, it could prove to be false economy, particularly for those managing the transaction from abroad.

Breakdown of the Costs
In Sweden, you are not obliged to use a lawyer to facilitate your purchase. However, it is highly recommended that a lawyer is used, particularly for new foreign investors who may not fully understand the Swedish legal system.

Real estate agents in Sweden often take the role of lawyer and negotiate the entire process. Whilst this can save money, it may mean that your interests are not adequately protected, so legal fees should really be seen as an essential and can vary between around 1 percent and 4 percent.

Real estate agents fees are generally around the 3.5 percent mark. This fee is almost always paid by the vendor. However, it is worth ensuring that this is definitely the case, especially with new build property where the developer is selling through one dedicated real estate agent.

Upon completion, the buyer is required to pay stamp duty and register the transfer. The stamp duty rate is around 1.5 percent of the purchase price. This fee is payable by the purchaser who should budget accordingly.

Ongoing Costs to Consider
In addition to the initial transactional costs, there are ongoing costs involved with owning property in Sweden. Every year, there is an annual tax charge on property of 1.5 percent of 75 percent of the property°¶s value on all property that is under foreign ownership.

Any new build properties do not have to pay this tax, during the first 5 years. A reduced fee of 50 percent is paid for the following 5 years.

General living costs in Sweden are often considered to be relatively high. But, it should be noted that this is counterbalanced by the superb standard of living and the excellent welfare benefits that are on offer.

Summary
Bullet Point Overall, the costs of buying in Sweden are relatively low;
Bullet Point solicitors, although not legally essential, are commonly used and charge around 1 to 4 percent of the purchase price;
Bullet Point stamp duty is payable at 1.5 percent of purchase price;
Bullet Point annual property tax is charged at 1.5 percent, with reductions available for new build properties.

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Typical Interest Payments

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2.89%

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2.89%

Discounted Rate

2.99%

Buy To Let

2.99%

Commercial

3%

 

 

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