The Swedish property market is a complicated one filled with regulation and redtape. We investigate.
The Swedish property market is not one commonly considered by foreign buyers. Let’s face it, the Northern European property market is dominated by wealthy buyers from the likes of the UK, the Nordics and Germany, primarily older property owners that are interested in acquiring a foreign property in a sun-rich country.
Portugal, Spain, Italy and Southern France are of course the key market for prospective buyers. Southern Europe is the dream of many sun-started Northern Europeans that imagine a life of sangria, sun and sand ahead of them.
However, the Southern European market in general has significant pitfalls, something that should steer buyers towards considering opportunities in Sweden, one of the most stable countries as regards property law and one country where you are very unlikely to face the threat of a property repossession.
House prices in Sweden rose by an incredible 10% in 2015, driven by a supply shortage. Sweden is facing a housing crisis caused by a lack of building, restrictive planning laws and a shortage of properties to rent as a result of its archaic housing allocation system. In addition it has a high level of immigration, driving prices further upward.
Similarly to the UK, Sweden imposes a stamp duty tax on prospective buyers. A 1% stamp duty tax is charged at the time of the property being registered, while there is also an annual prroperty tax of 1.5% that is set on 75% of the property’s value.
Sweden is a country in which there is a relatively small private rental market and a mountain of redtape obstructs legitimate property investors from maximising their returns. Despite that, it is a politically stable nation with a fast growing population. Sweden is certainly one country worth considering investing your cash into.