Tightened tax rules likely to hit Swedish real estate sector

The value of real estate in Sweden has been on the rise for a long time and foreign investments in Swedish real estate are substantial. The transaction volume for Q1 2015 amounted to approximately €2.3 billion, with foreign buyers accounting for 25% of this. The Swedish real estate market is often seen as a ‘safe haven’ but changes in the tax regime are expected which could alter the jurisdiction’s attractiveness in the eyes of foreign investors.