Legal restrictions

1. Acquisition of immovable property by foreign persons/companies.

There is no restrictions on foreign ownership in Sweden, se below on agricultural land.

2. Acquisition of agricultural land: restrictions and limitations.

In Sweden the term agricultural land includes forest. All natural and legal persons must have permission to acquire real property in certain rural areas.

The rural areas concerned are noticed in a regulation and may change form time to time. The main reason for this provision is to keep agriculture land in the hand of active owners. Legal persons who acquire agricultural land outside the rural areas must also have permission if the transferor is a natural person or an estate of a deceased person.

The main reason for this provision is to stop large corporations to buy large tracts of forest. A natural person does not need permission in areas outside the rural areas. An interested party may apply for permission to the County Administration in the county where the property is situated.

When a person applies for registration of the ownership to the Land Registry the permission must be enclosed, otherwise the application of registration may be refused. If permission is not granted it is possible to appeal against the decision.

3. Acquisition of flat property: legal restrictions.

There are no restrictions for such properties that are considered real property. However, most flats in Sweden are owned indirectly through a housing cooperative, a legal person that is the legal owner of the property. The membership of cooperative gives a person the right to use a flat without any limitation in time against payment of a service fee in the property that the cooperative owns.

This right is alienable. The membership, and the right to use a flat, is by law considered as personal property and registration in the Land Register is not required or even possible. The acquisition of a membership of a cooperative, for example through a purchase, is conditional of approval of the board of the cooperative, however, refusals that are discriminating are not valid and it is therefore possible to appeal a decision of refusal.

4. Acquisition of immovable property in special areas (such as on the coast or near military-related sites or in national parks, in the mountains, etc.)

There is no requirement for permission to acquire such property, unless the property is an agricultural property.

5. Acquisition of immovable property and listed monuments and memorials.

There is no requirement for permission to acquire such property, unless the property is an agricultural property.

6. Planning Code and legal restrictions (pre-emption right; approval by the municipality or other authorities; splitting a land parcel).

The local government has no right of pre-emption. Division of land requires permission of the Swedish Cadastral authority, Lantmäteriet, some municipalities are cadastral authority in there own area.

7. Land given by the municipality to domestic inhabitants: legal restrictions?.

There are no such provisions in Swedish law.

8. Acquisition of immovable property and tax affairs.

The transfer tax, or stamp duty, is only payable after registration in the land register. The tax is 1.5 percent for natural persons, 4.25 percent for companies and other legal persons, except for charities who pay the same rate as natural persons. The tax is calculated on the higher of the purchase price or of the cadastral value.

9. Destination of the land parcel and legal restrictions.

There are no special legal restrictions that are not already apparent from the description of the land parcel.

10. Any other legal, very specific restrictions.

Housing Cooperatives and tenants to land have in some cases the right to pre-emption for certain real properties. To have the right they must apply for a notice in the land register to give publicity of the right for a prospective buyer of the property.

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