Our Guide on Renting or Buying a Home in Sweden

Jump right in:

• Renting a house or apartment
• Rental process and rules
• Short-term rentals
• Buying property as a foreigner
• Utilities
• Internet & mobile phones

Renting a house or an apartment

Renting a house or an apartment

While the process of how to rent a house or apartment in Sweden is not difficult, expats will struggle to find a place. In recent years, Sweden has experienced a housing shortage, which has been felt most in Swedish cities by students and foreigners.

What is the average rent?

Swedish rent prices vary based on municipality and whether you live in an urban or rural area. On the whole, rent is high and consumes an average of 30% of every resident’s salary.

Most expats choose to live in one of Sweden’s five main cities: Stockholm, Malmö, Gothenburg, Uppsala, or Solna. In these cities, unless you’re looking for a private room in a home, the minimum rent in Sweden rarely dips below 10,700 SEK per month (approx. 1,220 USD).

How much is the rent in Sweden’s most expensive cities?

Stockholm city center

Gothenburg city center

Utility bills between these cities are fairly reasonable in comparison with the rent. For basic utilities estimations, see our Living in Sweden guide.

Rental process and rules

Unless you get really lucky, chances are you’ll live in a series of second-hand rentals in Sweden before landing a first-hand contract (förstahandskontrakt).

• A first-hand contract refers to direct renting from the landlord of a property.

• Second-hand renting is where you rent from the tenant who has the first-hand contract (in most other countries, this is called subletting).

Second-hand leases in Sweden (Andrahandsuthyrning) Second-hand leases are typically more expensive than first-hand leases. According to statistics, second-hand leases can average up to 65% more than a first-hand lease. Sweden has also seen a recent rise in landlords who overcharge second-hand leases simply because they know people are desperate for accommodation.

Second-hand leases will rarely last longer than a year, and in most cases they’ll only be for a few months. Because of this, many newcomers to Sweden find themselves having to move frequently during their first few years in the country.

Rental contract and deposit

To be eligible for a first-hand rental contract, you’ll need the following:

• a valid ID
• a personnummer (Swedish identification number), which you’ll get after registering with the Tax Agency. Find out how to get this number in our Working in Sweden section.
• references and contact information for previous landlords or employers
• proof of sufficient income

Some landlords may also require a guarantor if they believe your income is too low.

A second-hand contract will have similar requirements and documents for renting. However, one difference is ensuring that the second-hand leasing has been approved by the original landlord. Some landlords do not allow second-hand leasing, or may want to vet the second-hand tenant themselves. If you end up being in violation of this, you may find yourself evicted.

Those with a second-hand lease should also check that they are paying the same amount of rent as the original tenant. It’s illegal for a first-hand tenant to make money off of a second-hand lease. The only allowed extra cost is for a furnished versus unfurnished apartment. If you find yourself paying too high rent, you can send an application to the rent tribunal to have the rent reduced.

In contrast to some countries in which deposits are compulsory, Swedish rental contracts don’t always require a deposit, mostly for first-hand contracts (förstahandskontrakt) with municipal housing corporations. But it’s often required for second-hand leases (andrahandsuthyrning) and for private landlords. The deposit is often one to three months’ rent equivalent and acts as collateral for the landlord in case of unpaid rent or damage to the property.

Short-term rentals

As finding a first-or second-hand lease can take some time, or if you’re in Sweden for a short time, it would be wise to set up a short-term rental in the meantime.

Short-term rentals: Average price

While a short-term rental will be cheaper than the nightly rate of a hotel stay, expats should be prepared to not catch much of a break with housing costs whether they be long- or short-term. For short-term rentals, the monthly payment can be expected to be higher depending on the length of stay.

Short-term rentals: What documents do you need?

The only required document that is standard with a short-term rental in Sweden is your original passport and a copy. Depending on how long you need your short-term rental for, you may also be asked for proof of income and/or an employment contract, but on the whole, you should only need your passport.

Buying property as a foreigner

Property types

There are many types of properties to choose from in Sweden. Choices range from condominiums, detached houses, and even countryside cottages. Some terminology may be confusing to expats, such as a “villa” referring to a single-family home, rather than a large mansion-like estate.

Other property types to know:

• Lägenhet (Apartment)
• Radhus (Terraced/townhouse)
• Fritidhus (Vacation house)
• Kedjehus (Chain house)

House prices in Sweden

The average price to buy across Sweden is around 40,000 SEK m² (approx. 4,100 USD). The average price to buy a home in Stockholm, Sweden’s most expensive city, is around 74,900 SEK per m² (approx. 8,600 USD).

The three most expensive municipalities in which to purchase property are Lidingö, Solna, and Danderyd. The cheapest prices can be found in the Greater Stockholm area in Upplands-Bro and Södertälje.

Process and steps of buying a house in Sweden

There are no legal restrictions against a foreigner buying property in Sweden. Once two parties agree to a sale, the transfer is fairly swift.

Although not as competitive as finding an apartment to rent, buying a home in Sweden often results in bidding wars.

How can you find a property?

Although it’s not obligatory, working with a real estate agent during the home-buying process can simplify things for you. You may want to work with an agent because of the advantages they offer, such as helping you overcome language barriers and navigate the Swedish real estate market.

You can also search for properties online:

• Hemnet.se
• Booli.se

What are the requirements to buy a property?

You will have two options for paying for the property: cash or a mortgage. Banks have their own policies regarding lending. Some banks in Sweden are unwilling to lend to foreigners with no credit history, while others will lend to you even if you don’t reside in the country. However, this may come with different terms and conditions, such as a higher deposit.

Depending on the particular situation and the bank, you’ll need the following documents:

• proof of employment and a steady income
• credit history
• residency status
• personnummer (Personal identity number)
• ID card
• Swedish bank account

You may be asked for extra documents, but in general these are standard. Banks can only lend you up to 85% of the value of the property. Luckily, 30% of what you borrow is tax deductible.

Steps to buy a house in Sweden

Once you have assessed your financial situation and made your pre-application for a mortgage, you’ll proceed with the following steps:

1. Search for a property: You can search on online platforms or through real estate agents.
2. House viewing (visning): Participating in the viewing allows you to explore the property and get a feel for it before making a purchase decision.
3. Make an offer and enter the bidding process (budgivning):
4. Finalize the contract and pay the deposit: If possible, consult a legal advisor to check your contract. After going through details, you'll pay the deposit, which is around 15%.
5. Property inspection: You should hire surveyors to inspect the property. The real estate agent, although typically hired by the seller, is legally supposed to work on behalf of both parties. They should be able to help you hire surveyors if you're unable to do so. This prevents any future conflicts or surprise repair costs.
6. Payment and property registration: After the inspection is complete. you'll pay the remaining balance and receive your keys. Finally, you'll register your ownership with the Swedish Land Registry.

Can you get Swedish citizenship by buying a house?

Unfortunately, it’s not possible in Sweden to buy a house and receive permanent residency or citizenship. The requirements to get permanent residency or citizenship instead depend on criteria such as the amount of time you have lived in Sweden, employment, or family reunification.

Utilities

When searching for which energy provider to choose, most Swedish residents use compricer.se to compare the best companies and prices within their specific municipality.

If you’re renting an apartment, heating and water may be included in your rent depending on your contract. Natural gas is not widely used in Sweden, including Stockholm. In general, utility prices in the country are reasonable.

Things to know about electricity in Sweden

Sweden is divided into four separate electricity areas. The price of electricity differs between each area. Electricity suppliers may also vary by area, but recently most major suppliers can be found in four bidding zones, and their pricing varies by these zones.

Utility companies

The water supply in Sweden is managed by several large companies, including:

• Stockholm Vatten
• Svenskt Vatten
• Sydvatten

There are three main electricity companies in Sweden:

• Vattenfall
• Fortum
• E.ON

If you don't choose an electricity supplier, you’ll receive a designated contract (anvisningsavtal). This contract may not have the best rates, so it’s usually a smart idea to actively choose a supplier.

Required documents to set up utilities include:

• personnummer (Swedish personal identity number)
• your name, address, and telephone number
• date on which you want the new contract to start
• the electrical system specifications and area of your accommodation (this may be on your lease, or you can ask the landlord)

When you move to a new address in Sweden, you need to sign an electricity contract at your new address or with some providers you can take your contract to your new address.

Internet & mobile phones

As an expat, staying connected is important to keep in touch with friends and family. One of the first things you’ll want to know upon landing in Sweden is how to get a SIM card, phone number, and internet access.

Internet and phone plan

Setting up mobile or internet service in Sweden can be tricky without a personal identity number (personnummer). Unlike in many other countries, Swedish law no longer allows the purchase of a prepaid SIM card (kontantkort) without registration. Most providers will ask for your personnummer or BankID, but you can instead get a travel eSIM or contact your chosen mobile operator for options.

Mobile contracts usually last one to two years, so keep this in mind when choosing a provider. If you leave Sweden before your contract ends, you may need to pay the remaining balance. For shorter stays, you can use prepaid SIM cards.

Internet may be included in your rent. If not, signing up requires documents such as your residence permit, and you may need to wait until you are registered at a Swedish address.

Top mobile network operators:

• Hallon

• Telenor

• Vimla

• Tellus

• Comviq

Wi-Fi

Whether you sign-up for your own Wi-Fi contract or use what comes with your rent, you can rest assured that connectivity should not be an issue. No matter if you’re in the center of bustling Stockholm or in the Swedish wilderness, internet connection is of fairly high quality throughout Sweden. Nearly every provider offers cable, DSL, fiber optic, or wireless.