How to Buy an Apartment or House in Sweden: Step‑by‑Step Guide

Buying an Apartment or House in Sweden – A Complete Guide

Buying a home in Sweden is one of the biggest financial and practical decisions you’ll make. For many, the process feels overwhelming: you don’t just need to find the right property, but you also need to handle bank loans, negotiate with real estate agents, prepare for moving, and later even think about tax implications.

In Sweden, there are two typical ownership types to consider: bostadsrätt (a cooperative apartment right-of-use) and villa/radhus (a house or rowhouse, where you own the building and the land). The responsibilities and costs differ substantially, and understanding these is key before you even begin your search. Let’s walk through the journey step by step.

Understanding Financing and Swedish Mortgages

The starting point for any buyer is securing financing. Without that, you cannot join the bidding process. Swedish banks expect you to provide a minimum down payment of 15% (called kontantinsats). This is often the biggest hurdle for young buyers. For example, if the apartment costs three million kronor, you must provide at least 450,000 kronor from your own savings.

When you meet the bank, you apply for a lånelöfte (a mortgage commitment). This document says how much the bank will lend you and is valid for a limited time. A lånelöfte makes you a serious buyer since sellers and agents know you can actually pay. Always compare loans from several banks because interest rates, customer services, and amortization rules differ.

It’s also important to understand Sweden’s amorteringskrav — the mandatory repayment rules on top of the mortgage interest. If your loan is large compared to the property’s value, you will be required to pay down a percentage every year. The difference between paying only interest on the loan and making full amortizations can be several thousand kronor each month, so make sure you know what applies to your case.

Finding the Right Home

Most people begin their search on websites like Hemnet and Booli, where essentially every agent lists properties. If you are interested in apartments, you will be buying a bostadsrätt, which means you do not own the physical apartment but a right to live in it. The property is owned by a bostadsrättsförening (housing association) where all residents are members. These associations have their own finances, loans, and renovation plans, and as a buyer you inherit a share of that responsibility. That is why reading the association’s årsredovisning (annual financial report) carefully is critical. Low fees can look attractive, but if the association is heavily indebted or facing costly renovations like pipe replacement (stambyte) or roof repairs, the monthly fee may rise sharply in the future.

If you are buying a house, you instead take full responsibility for the building. You should review things like heating system type and age, insulation, drainage, roofs, and water systems. Ongoing costs such as heating can vary widely depending on the house’s location and system — from 1,500 SEK per month to more than 4,000 SEK.

Viewing and Bidding

When you attend a visning (viewing), take time to ask the mäklare (real estate agent) all the questions you have. For apartments: upcoming renovations, debts, monthly avgift, and what exactly is included (sometimes heat, water, or TV is part of the fee). For houses: year of renovations, condition of foundation, and actual running costs.

Once you are interested, the next step is budgivning (bidding). In Sweden, bidding is handled by the agent, and every new bid is communicated to all participants immediately. This process can escalate quickly and emotionally. Always set a maximum limit before you start. Remember: until the contract is signed, bids are not legally binding for either buyer or seller, which means sellers could in theory back out or accept another offer.

Contracts, Membership Approval, and Payment

When your bid is accepted, you meet with the agent and seller to sign a köpekontrakt (purchase contract). At this point, you pay a handpenning (deposit) of typically 10% of the purchase price. If you buy a bostadsrätt, the contract will also be conditional upon your approval by the housing association. Normally this is a formality, but if the association considers your finances too unstable, they can in rare cases decline.

Your bank then finalizes the mortgage. Sometimes, if you are selling your current home at the same time as buying another, you may need a överbryggningslån (bridge loan). This is a temporary loan that covers your purchase cost until your sale is completed.

On tillträdesdag (the handover day), the bank transfers the remaining money, keys are handed over, and you become the legal owner.

Planning the Move

Moving in Sweden comes with its own logistics. You must arrange a moving company (flyttfirma) or organize the move yourself. Professional movers usually cost between 5,000 and 15,000 SEK depending on the distance and amount of furniture. Some movers also provide packing service. Parking space for the moving truck may need to be arranged in advance with the municipality.

An equally important but often overlooked detail is the flyttstädning (moving-out cleaning). Standards are very strict, and if you fail, the buyer of your old home (or your landlord if you rent) can demand that you redo the cleaning. Many Swedes therefore hire specialized cleaning companies, which usually costs between 2,000 and 6,000 SEK depending on the size of the apartment.

Before moving day, you also need to:

Activate or transfer utilities such as electricity and broadband.
Ensure your hemförsäkring (home insurance) is active from the first day.
Register your new address at Skatteverket, which updates almost all institutions automatically (banks, authorities, Försäkringskassan).

After You’ve Moved In

Life doesn’t stop at handover. There are important follow‑ups to consider. If you’ve bought a bostadsrätt, you now have the right to attend association meetings, vote on important issues, and you share responsibility for the building’s long-term planning. With a house, you are your own association; all future repairs and investments are yours to carry.

From a financial perspective, keep in mind that the following year you will need to declare your mortgage interest in your inkomstdeklaration. This is beneficial because all mortgage interest is tax deductible, which lowers your taxable income. House owners will also pay an annual fastighetsavgift (municipal property tax).

If you renovated before selling your old home, keep all receipts. Renovations that increased the standard (like a kitchen or bathroom upgrade) can be deducted from capital gains tax if you sell with profit. The capital gains tax on profit from selling housing is 22%. However, if you both sell and buy at the same time, you can apply for uppskov (deferral), which postpones paying the tax as long as you reinvest in a new permanent home.

An example: If you sold your old apartment with 500,000 SEK profit, you would normally pay 110,000 SEK in tax. But if you buy a new home, you can defer this. Later, when you sell without buying another, you must pay it — though the rules sometimes change politically, so always check Skatteverket’s regulations.

Costs You Should Budget For

Many buyers make the mistake of stretching their finances to the maximum purchase price without considering add‑on costs. To avoid surprises, expect at least:

Down payment: 15% of purchase price.
Moving company: 5,000–15,000 SEK.
Move-out cleaning: 2,000–6,000 SEK.
New furniture and setup: even modestly, 20,000–50,000 SEK.
Renovations (optional): Kitchen 100,000–200,000 SEK; bathroom 80,000–150,000 SEK. You may be able to deduct these later when selling.
Ongoing fees: Apartment avgift (2,500–5,000 SEK/month), House heating/maintenance (2,000–4,000 SEK/month depending on system).

Key Pitfalls to Avoid

Overbidding in budgivning
It’s easy to get emotionally carried away and bid more than you had planned. Stick to your budget — overpaying will restrict your future finances.
Ignoring bostadsrätt finances
A low monthly fee (avgift) can hide a heavily indebted housing association. Rising interest rates or upcoming projects (like stambyte or roof replacement) can quickly increase costs.
Insurance gaps
Forgetting to activate home insurance (hemförsäkring) from day one is risky — even one day uninsured can leave you completely exposed if something happens.
Not updating Skatteverket
Your address must be registered correctly. Without it, you risk problems with postal delivery, ID checks, even voting eligibility and benefits like Försäkringskassan.
Capital gains tax confusion
Believing you don’t need to declare a sale because you reinvested is a mistake. You must still report it and apply for uppskov if you want to defer the tax.
Throwing away receipts
Receipts for renovations, mäklare fees, and other selling costs are crucial for reducing taxable profit later. Without them, the tax bill can be unnecessarily larger.
Not booking movers on time
At the end of each month, flyttfirmor are often fully booked. If you wait too long, you may either fail to book one or have to pay premium rates.
Forgetting utilities and internet
New owners sometimes realize only after moving in that electricity or broadband is not connected. Especially in houses where you must sign an electricity contract separately, forgetting this can mean moving into a dark, cold house with no Wi‑Fi.
Parking and storage oversight
In cities like Stockholm, parking spaces or garage contracts have waiting lists. Failing to arrange this in advance may leave you without parking for months, relying on expensive street parking fines and daily searches. Also, not checking storage availability (förråd) in an apartment building can be frustrating later.

Tips from Experience

Having navigated the Swedish housing market myself, here are a few insights that often get overlooked but can make a big difference:

Befriend the Mäklare (within reason): While they represent the seller, a good relationship with the real estate agent can sometimes give you an edge. They might share insights about the seller's timeline or preferences, which can be valuable in a tight bidding situation. Don't be afraid to call them directly after a viewing to express serious interest and ask follow-up questions.
Dig Deep into the Brf's Economy (for apartments): Don't just glance at the årsredovisning. Look at the association's total debt, how much they're amortizing, and their interest rates. If they have large loans with short fixed-interest periods, they could face significant fee increases when those loans are renegotiated, especially in a rising interest rate environment. Also, check their maintenance plan (underhållsplan) for major upcoming renovations like pipe replacements (stambyte) or roof work, as these often lead to fee hikes.
Don't Underestimate the "Hidden" Costs of a House: Beyond the purchase price, houses come with ongoing responsibilities. Budget for things like property tax (fastighetsavgift), garbage collection, chimney sweeping, and potentially more expensive insurance. If you're buying an older house, consider getting a professional inspection (besiktning) to uncover potential issues like moisture damage or foundation problems before you commit.
Think Long-Term with Renovations: If you plan to renovate, consider what adds value for future sales. A new kitchen or bathroom almost always pays off, but highly personalized or niche renovations might not. Keep all receipts meticulously, as these are your golden tickets for tax deductions when you eventually sell.
The Power of "Öppen Budgivning" (Open Bidding): While bidding can be stressful, the transparency of "öppen budgivning" (where all bids are visible) is generally a good thing. It prevents secret deals and ensures you know exactly what you're up against. Don't let the pressure push you beyond your comfort zone.
Consider the Commute and Local Services: Beyond the property itself, think about your daily life. How long is the commute to work? What are the local schools like? Are there grocery stores, pharmacies, and public transport options within easy reach? These factors significantly impact your quality of life and the property's long-term value.

Final Checklist

Apply for loan commitment (lånelöfte) and prepare 15% down payment.
Search actively for properties, attend viewings, and carefully study financial documents.
Enter bidding with a realistic maximum budget.
Sign a contract, pay deposit, secure association approval if buying a bostadsrätt.
Arrange mortgage, bridge loan if selling at same time.
Order insurance, utilities, movers, and cleaning.
Complete payment and key handover on tillträdesdag.
Register your new address with Skatteverket and update all services.
Keep receipts for renovations and agent costs for future tax deductions.
Next tax year, declare mortgage interest, pay property tax if house owner, and report purchase/sale including uppskov possibility.