How to buy a Swedish summer house?

Are you looking to join the ranks of Brits buying summer houses in Sweden? While people from neighbouring countries have been buying summer houses in Sweden for some time, Brits have only recently discovered the charm of these cozy wooden houses that are a part of the Swedish lifestyle.

The Swedish summer house is called sommarstruga or lantställe in Swedish. Often painted red, these quaint wooden houses or cottages offer an escape from the hustle and bustle of everyday life.

Swedes retreat into their summer residences to enjoy the good weather closer to nature, often spending weeks and months in serene surroundings at a slower pace.

If you’re looking for ways to save money on currency exchange when buying property in Sweden, check out the money services provider Wise. You can send large transfers with Wise for low fees and great exchange rates - making it ideal if you’re sending a secure international transfer.

Can a UK foreigner buy a summer house in Sweden?

Yes, there are no restrictions as of 2024 for foreigners when buying a property in Sweden.¹ In 2023 there were 38,180 foreign holiday home owners, making up just a little more than 6% of all holiday homes owned in the country.²

Can you get residency if you buy a Swedish holiday home?

Buying any kind of property in Sweden does not give you residency. UK citizens can travel to Sweden (and all of the Schengen area) for up to 90 days in a continuous 180-day period as a tourist or to visit friends or family.³

If you plan to stay in Sweden for more than 90 days or want to extend your visit during your stay, you can apply for a visitor's permit.⁴

Do you need a Swedish bank account to purchase a summer house in Sweden?

Yes, you need to have a bank account in Sweden to complete the purchase of your summer house. But, to open a bank account in Sweden you first need a coordination number.

Coordination number or samordningsnummer

This tax ID number lets you pay taxes in the country without being a resident.

You also need your coordination number to purchase your summer house and pay the associated taxes.

To get your samordningsnummer just head to the nearest tax office in Sweden and apply for your coordination number there. You can do this at the same time you are viewing properties, for example.

Step-by-step guide on how to buy a Swedish summer house as a Brit

Buying a summer house in Sweden is relatively easy. You will have to make a bid or offer on the summer home you want to buy. If there are other potential buyers, the house will be sold in an auction-style sale. There’s nothing too complicated about it, usually this will be done through a real estate broker. The broker will also handle all aspects of the sale from start to finish, guiding you every step of the way.

Without further ado, here is a step-by-step guide to buying a summer house in Sweden.

1. Look for the perfect summer home

Consider your needs and wants as well as your budget. Browse portals like hemnet.se, booli.se, and vitec.net, contact a real estate broker or agency, or buy directly from a seller. Choosing a broker or agency is a great idea, as they will give you help and guidance throughout the process.

2. Arrange for a viewing in person

Make sure to visit in person so that you can inspect the property. You’ll always get the best – and most accurate – sense of the house and the surrounding area by going there yourself. If at this point you’re happy with what you see, you can make an initial offer.

3. Inspect the property

As a buyer, you have the duty to inspect the property. If the seller has ordered a survey from a professional, make sure you understand everything outlined in it, so you don’t have any unpleasant surprises later.

It’s important to know that if later on you discover a defect or damage, that should have been found during the inspection, it will usually not be possible to get any of your money back. If you’re using a broker, you can count on them to help with this part.

One special thing to note about Sweden is that some houses can have a risk of high levels of indoor radon. Radon is a radioactive gas that can’t be detected by smell or colour – because it has neither. This means it’s important to use specialist equipment for testing.

Radon naturally occurs in the ground in Nordic countries. It also finds its way into houses through tap water from deep wells.⁵ Another culprit is a building material called blue concrete that was used from 1929 to 1975.⁶

Long-term radon exposure can cause respiratory issues and even lead to lung cancer. While it’s likely you have nothing to worry about and all the necessary testing has been done, it’s good to be aware of this local peculiarity and to look into it if necessary.

4. Finalise your offer and sign the contract

Once you agree on the final price with the seller, it’s time to draft the contract. The deed of purchase will have the final price, the date when the ownership is transferred and you will access the property, and any other terms that have been agreed on.

You will sign the purchase contract with the seller and the broker. The contract is binding only once all parties have signed.

5. Transfer the money

It’s common to make a down payment of 10% once the purchase contract is signed. The rest is paid on the date of completion. You can transfer the money to the real estate broker's account and they will handle the rest.

International transfers could get expensive, especially if the provider adds a margin to the exchange rate to convert your pounds. Consider checking out Wise to handle your large transfers with mid-market exchange rates and low, transparent fees.

6. Change of ownership

Your broker will register the change in ownership with the Swedish land registry.

7. Get insurance

While it’s not mandatory in Sweden, it’s always a good idea to have insurance in case anything happens. Your vacation home insurance should be in place starting from the day of completion.

8. Enjoy your new holiday home in Sweden

On the handover date, you’ll finally get to enjoy the comforts of your new holiday home. And the seller will receive the final amount for the sale.

How much do holiday homes cost in Sweden?

You will find summer homes for many different budgets in Sweden. Tiny 1–2 room summer houses can sell for as little as 10,000–30,000 pounds.

We looked at holiday homes on hemnet.se within a 60-mile radius around Stockholm. Small and modest 300–400 square foot holiday homes start from 20,000–30,000 pounds.

If we leave out the villas and very large properties, the more expensive summer homes cost around 100,000 pounds.

In Västra Götalands county (in southwestern Sweden), small summer houses start from 2,000–7,500 pounds and more expensive houses cost up to around 65,000 pounds.

Up north in Norbotten the holiday homes start from around 22,000 pounds, but are bigger and can sometimes house visitors all year round. The more expensive summer houses here cost around 65,000 pounds.

Property taxes in Sweden

Property tax is paid once a year, at the beginning of the year. On the year you buy your holiday home, the owner has most likely already paid the property tax.

When you buy your holiday home, you’ll also have to pay stamp duty. ⁷

Tax	Amount
Stamp duty (transfer tax) Note: stamp duty can also be added to the purchase price	1.5 %
Property tax	0.75% of the assessed tax value but not higher than 9,525 SEK (about 705 pounds)

And, should you want to make a bit of extra cash by renting out your property, you’ll need to pay taxes in the country you are a tax resident of. This means that as long as you live in the UK, you’ll have to pay tax according to the local rules of the UK government.⁹

How can you find a summer house in Sweden?

The easiest way to find your summer house in Sweden is directly through a real estate broker, an agency, or by browsing online portals. Out of the three we have listed earlier, hemnet.se is the largest, so you may have the best odds searching there.

Where do most Brits purchase summer houses in Sweden?

The top holiday home buyers in Sweden come from Denmark, Norway, Germany, and the Netherlands. If we exclude them, the most popular areas for all other foreigners, including Brits, to buy a summer house are Norrbotten, Västra Götaland, Värmland and Västerbotten.

How to choose the right holiday home in Sweden?

Here are a few important things to consider when looking for your dream holiday home in Sweden.

Budget

Look at various summer houses in different areas to get the best possible deal for your budget. Consider early on what things you’re willing to negotiate on and what not. Also consider the upkeep costs. Check if you need to pay for some utilities year-round, even when you’re not there.

House condition

If you have a smaller budget, you may opt to buy a place that needs some fixing up. Consider how much time it would take and whether you want to spend your vacations working on your summer home.

Location

Do you want a place in a remote location or closer to cities and cultural attractions? Are you dreaming of beautiful coasts or deep forests? Do you prefer boating or skiing? Sweden is a vast country with a lot to offer. Look into the different areas of the country and explore what each has to offer.

Accessibility

Also consider the infrastructure. Good roads and a well-connected location will keep the property value high. Easily accessible places also make it more convenient for you and your guests to reach the summer house.

Internet access

If you need to work or need fast internet access for other reasons, it’s something to factor into your property search.

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In conclusion – Sweden is a beautiful country, boasting incredible diversity and natural beauty. Whether you choose a cottage in the mountains or a little house with a serene archipelago view, there’s no doubt you’ll find a little wooden house fit just for your needs.

And, if you want to save money while buying your new summer house in Sweden, use Wise to send your international transfer.

Sign up with Wise today 💰

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Sources used:

1. Nordic cooperation – Housing in Sweden
2. Statistics Sweden – Just over 6 percent of holiday homes in Sweden have foreign owners
3. GOV.UK – Entry requirements - Sweden travel advice
4. Migrationsverket – Visit Sweden for more than 90 days – apply for a visi­tor’s permit
5. Oxford Academic – Swedish Radon Programme
6. Nomor – Radon
7. Skatteverket – Municipal and national property tax
8. LF Stockholm – Home insurance
9. GOV.UK – PIM4702 - Rent from property outside the UK: Income Tax (IT) - HMRC internal manual

Sources last checked on date: 24-Apr-2024