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LIVING IN SWEDEN

What you need to know about owning a second home in Sweden

In most countries owning a second home is a luxury reserved for the wealthy, but in Sweden it's very common to have a summer home or 'fritidshus'. Here's what you need to know.

What you need to know about owning a second home in Sweden
A fritidshus in Småland. Photo: Alexander Hall/imagebank.sweden.se

What is a fritidshus

In Sweden, second homes are generally either classified as a fritidshus, literally a “free time house”, or a permanenthus or permanentboende.

A fritidshus is defined as “a house which is not set up for all-year-around living”. Rather confusingly, this does not mean that you can’t live all-year-round in a fritidshus, or, indeed, that you can’t use a permanenthus as your summer house. 

The difference comes down to how the two types of property are treated in Sweden’s building code, with fritidshus allowed, among other things, to have lower ceilings, smaller bathrooms, more basic kitchens, worse accessibility for disabled people, a lower standard of insulation. 

If you decide to live permanently in a fritidshus, you do not need to get approval to do so, but the building committee at your local council can, if they learn of what you are doing, demand that the building be changed to meet the requirements of a permanenthus (although this rarely happens).

There is also a subgroup of fritidshuskolonilott, which are houses with a small amount of land which should be used for growing food (although lots of people just use them as attractive gardens). This is different from an odlingslott, which is just an allotment, essentially a kolonilott without the house.

These are usually in designated kolonilott areas close to or in cities, and are not intended for year-round living. In most kolonilott areas, water supply and drainage is cut off outside of the growing season, and you’re not allowed to register them as your permanent address, for example.

Relaxing outside a summer house. Photo: Doris Beling/Imagebank Sweden

How much does a second home cost? 

The average price of a fritidshus fell by about 6 percent in 2023, following a 1 percent fall in 2022, and now lies at about 2.2 million kronor.

But a search on the Hemnet website for fritidshus under 1 million kronor shows that many sell for a lot less, particularly outside the most popular areas. 

As a rule of thumb, anything within an hour’s drive of Stockholm, Gothenburg or Malmö is likely to be more expensive, as is anywhere on the coast (particularly on Gotland), next to a lake, or near one of Sweden’s more popular skiing areas. 

A report from Länsförsäkringar Fastighetsförmedling, out in mid-2023, found that summer houses were cheapest in Kronoberg country (the southern bit of Småland), followed by Örebro, Värmland, Norrbotten and Västernorrland, and most expensive in Gotland, Stockholm County and Halland. 

What’s the point of having one? 

Despite its vast expanses of unspoiled nature, Sweden is very urbanised, with nearly 90 percent of people living in built-up areas and 63 percent in the biggest few cities. It’s much more common to live in an apartment in a city than in the sort of suburban sprawl of houses with their own gardens so common in countries like the UK and US.

This means that most urban Swedes leave any gardening to their summer houses or allotments.

Given the cold, dark winters, that probably makes sense. 

Fritidshus and other second homes are also at the centre of the long Swedish summer break, when people often take three, or even four, weeks off back-to-back. If you don’t have your own fritidshus, you can spend much of the summer visiting people who do. 

What’s the downside? 

Aside from the cost, it’s a lot of work. Owning a fritidshus means weekends spent at out-of-town building supply shops, and brings a whole new list of chores like cleaning the gutters, mowing, trimming hedges, raking leaves and chopping wood.

If you like foreign travel, and have a lot of other passions and hobbies, you may find owning a summer house squeezes them out. 

A summer house in the Stockholm archipelago. Photo: Sara de Basly/Imagebank Sweden

How common is it to have a fritidshus

There are about 607,000 fritidshus in Sweden, and according to Statistics Sweden, about one in three children (35 percent) have access to one.

It most common to have access to a fritidshus in the north of Sweden, with more than half of children having access to one in 51 municipalities north of Dalarna, and it is least common in Skåne, where in some municipalities only 10 percent of children have access to a fritidshus. 

Is it best to have a second home in a fritidsområde or on its own? 

Many municipalities in Sweden have set aside areas, often near a lake or by the sea, specifically for the building of fritidshus, selling off plots, or tomter, on which people can either build a holiday cottage themselves or get a builder to do it.

According to Statitsics Sweden, about a quarter of fritidshus are in such an area, with Stockholm County boasting the most fritidsområde, or holiday home areas, followed by Västra Götaland (near Gothenburg) and Skåne (near Malmö and Helsingborg). 

If you are building your own summer house, the advantage of doing so in a fritidsområde is that electricity, water and sewage has normally already been run along the edge of the plot, making these services cheap and easy to connect. 

If you want to get a summer house near the coast or a lake, it is also cheaper if you buy one in a fritidsområde. 

On the downside, they can feel a little like living in a housing estate, you have to be careful not to make too much noise, and can end up getting complaints from the local neighbourhood committee if you don’t maintain your property in the way they expect. 

As many fritidsområde were set up the 1960s and 1970s, with a lot of the houses then built by enthusiastic amateurs, they can also be in desrepair and have structural problems. 

The plots that have yet to be built on, meanwhile, are often the worst, for instance with ground that is damp or prone to flooding. 

Renting out your second home

One of the advantages of your second home being classed as a fritidshus is that – so long as you’re only renting it out short-term — you are not covered by Sweden’s strict rental law or hyreslagen.

This means whatever rent you agree with the tenant is valid, there is no requirement to ask for a “reasonable” rent, and tenants cannot contest the rent with the regional rent tribunal.  

Airbnb makes renting out your fritidshus extremely easy and on the other side makes it a lot cheaper and easier to rent a summer house for three weeks in the summer than to own one all year around.  

If you earn more than 40,000 kronor in a year from renting out your fritidshus, though, you are required to declare it to the Swedish Tax Agency. 

You can then subtract a 40,000 kronor ‘standard deduction’ from your rental revenue and a further 20 percent deduction for rental income, before it gets taxed. See the guide from the Swedish Tax Agency here

This means if you receive 60,000 kronor in rent, you subtract first 40,000 kronor, then 20 percent of the 60,000 kronor, which comes to 12,000 kronor.

This leaves you with 8,000 kronor to be taxed as capital income at 30 percent, leaving just 2,400 kronor in tax due. 

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PROPERTY

INTERVIEW: ‘Most foreigners in Sweden don’t know they can get back excess rent’

In Sweden, people subletting apartments are not allowed to charge more in rent than they themselves pay. But foreign subtenants don't always know this. We asked Roland Sjölin, lawyer at the Swedish Tenants' Association, about how to get back excess rent.

INTERVIEW: 'Most foreigners in Sweden don't know they can get back excess rent'

More and more of the people asking the Swedish Tenants’ Association, Hyresgästföreningen in Swedish, for help with excess rent are foreigners, Sjölin told The Local in an interview.

“The problem is that if you’re coming from another country, and you’re subletting an apartment, you’re probably not familiar with the rules in Sweden, because in other countries, it might be okay to overcharge your tenants.” 

He said that clients from India in particular seeking help from the association were now “very common”. 

“Many people come here to work as engineers in the IT sector and then have to rent somewhere,” he said, adding that as a group Indians appeared to be “very aware of their rights.”

Sweden’s rental sector is heavily regulated, with first hand contracts negotiated between landlords and the Tenants’ Association, and the rent that can be charged for second-hand contracts limited to only a small fraction above what the first-hand renter pays. 

“You’re not allowed to make any profit subletting an apartment in Sweden,” Sjölin explains. “You can only charge the subletting tenant the same rent as you [the first-hand tenant] are paying to your landlord, and then you can add the costs for internet and electricity, and perhaps a parking lot, if that is included.” 

Tenants’ Association lawyer Roland Sjölin. Photo: supplied.

You can also add a påslag or “markup”, if you are renting out the apartment fully furnished, but this cannot exceed more than 15 percent of the rent. 

That doesn’t mean that most landlords follow the law. The competition for rental apartments, especially in Stockholm, is so intense, that unscrupulous sublet landlords often try to get away with charging well over the legal amount, charging what is known in Sweden as ockerhyra, or “excess rent” and hoping that their tenants are too desperate to complain.  

What many foreigners do not realise is that even after the rental period is over, they can still get back any excess rent they have paid by applying to the Rental Board or Hyresnämnden, which functions like a court judging rental disputes. 

“If you have the evidence then it’s fairly easy,” Sjölin said. “I get a new case every second week on repayment of unfair rent, and I think that I win most of them.” 

“Nowadays, you can get paid back excess rent up to 24 months back in time, so people tend to get more money,” he added. “In some cases, they can get 200,000 kronor. In other cases, perhaps it’s only 30,000 kronor or 60,000 kronor. It depends on how long you have rented the apartment, and how excessive the rent you’ve been paying has been.”

The first step is to establish what would have been a fair rent, either by asking your landlord what they themselves pay directly or by checking with the Tenants’ Association.

“Because we negotiate most rents in Sweden, we normally know what the firsthand rent is,” Sjölin explained.

Then you need to collect together your evidence.

“It’s a good thing to have a written contract and also papers from your bank showing that you paid rent every month, and perhaps photographs of the apartment, so the rental board can get an idea of the apartment you were renting and what would be a fair rent, and also the termination for the contract so you can show the court how long you’ve been living in the apartment.” 

But Sjölin underlined that since Sweden has free burden of evidence, none of this is essential. 

“Even if you’ve been paying in cash, if you have witnesses who can testify what you were paying each month, you still have a chance of getting your money back. It’s a bit more tricky, but I’ve won two cases like that this year.” 

People in Sweden, he explained, tend to wait until the rental period is over before seeking to get paid back excess rent rather than challenging their landlord while they are still living in the apartment. 

“You don’t have any legal protection for your home for the first two years, so if you bring the matter up with the person you’re renting the apartment from you risk losing your contract and having to move out, so most people wait until they’re supposed to move anyway,” he said.

If you apply to the rental board for a refund close to the day you move out, you can then make your landlord pay back all excess rent paid in the 24 months leading up to the date you contacted the rental board.

If you are a member of the Tenants’ Association, you can contact them and ask for help with your application, but there are also specialist companies, like Orimlig Hyra AB who will buy your case off you and give you a refund within 48 hours, saving you a long wait in exchange for a cut of the money reclaimed. 

Sjölin said that the rental board normally took about 8 months to come to a judgement, but that if the person with the first hand contract appeals, that could extend the waiting time by between six months and a year.

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