The annual tax rate on real estate in Sweden is 0.75% of the tax value of housing. The latter is from 2/3 of the market value of the object and more. The maximum tax rate is 6000 SEK per year (€ 650), the average is 2.3-2.8 thousand SEK (€ 250-300).
An important item in the cost of maintaining the house is utility payments. The main share falls on the payment of electricity, which, in particular, heats the room. The most uneconomical method of heating is the use of electric radiators – maintaining the required temperature in the house of 150-160 square meters will cost € 1500 per year. Increasingly, homeowners are using a heating system based on the accumulation of natural groundwater heat (bergvarme), which makes it possible to save considerably compared with electric radiators.
Property insurance will cost the owner € 200-250 per year, garbage collection – € 30. Thus, the total amount of expenses for the maintenance of a medium-sized house will be about 1.5 thousand Euros per year or € 125 per month.
Renting out the Real Estate
Renting out a home is a fairly popular way to pass the cost of maintenance on the tenant. In the greatest demand for tenants are apartments in the centers of large cities, such as Stockholm, Malmo, and Gothenburg. The cost of renting an apartment depends more on its condition than on its location. The maximum level of rent is established centrally every year.
The tax on a rental income is paid as an income tax (30%). The income tax is paid by those whose income exceeds a certain level (the height of which depends on a particular region). The tax is paid to the tax office along with the sending of the annual declaration.
In Sweden, it is not customary to entrust housing to a management company, but if you wish, you can find a company that provides this type of service. Depending on the client’s wishes, the “management” will include a different set of services, from regular checking of the state of the house and paying bills to solve rental issues.
Property for Sale
If the seller is not a tax resident in Sweden, they do not have to pay a real estate tax. The commission of the agency that sells your property will average 20-30 thousand crowns (€ 2.2-3.3 thousand).