Land leases in Sweden – a practical guide
A lease (arrende) means that land is granted for use in exchange for consideration. Swedish law distinguishes between agricultural leases, residential leases, facility leases, and other land leases (lägenhetsarrende). The category to which the lease belongs determines much of the legal situation.
1. Start with the right form of lease
| Lease form | Typical purpose |
|---|---|
| Agricultural lease | Cultivation, farmland, and grazing. |
| Residential lease | Land for a residential or holiday home owned by the tenant. |
| Facility lease | A building on the land for commercial activity. |
| Other land lease (lägenhetsarrende) | Other land use that does not fit into the other categories. |
2. Written agreement
Agricultural, residential, and facility leases must be in writing, and the terms of the agreement must be stated in the document. For other land leases (lägenhetsarrende), the requirement for a written agreement applies unless the parties have agreed otherwise. Even in that case, a written agreement is usually the safest choice.
3. What should the lease agreement contain?
- the parties,
- the property and leased area, preferably with a map,
- the purpose of the grant,
- the lease period,
- lease fee and payment,
- indexing or changes to terms,
- buildings and investments,
- maintenance and insurance,
- transfer and subletting,
- termination and security of tenure.
4. The lease fee
The fee can be regulated in various ways, but certain lease forms have specific rules regarding reasonableness and review of terms. Avoid relying on a general percentage model as if it applied to all leases.
5. Security of tenure
Agricultural and residential leases often have direct security of tenure. Facility leases normally have indirect protection, and other land leases (lägenhetsarrende) lack corresponding statutory protection. Read our in-depth guide on security of tenure.
6. Building on another person's land
If the tenant owns the house while someone else owns the land, it may be a "building on non-freehold land" (byggnad på ofri grund). This has consequences for agreements, transfers, and real estate taxation. Read the guide on buildings on non-freehold land.
7. VAT and accounting
VAT treatment varies. The leasing of real estate is often VAT-exempt, but there are explicit exceptions, including for agricultural leases, hunting, fishing, and grazing. See the accounting and VAT guide.
Common mistakes
- the wrong form of lease is used,
- the area is not sufficiently specified,
- oral side agreements are used despite written requirements,
- notice periods are missed,
- buildings and investments are left unregulated,
- security of tenure is assumed to be the same for all leases.
Land lease: which agreement should you choose?
The terms land lease and leasing land do not by themselves identify a legal lease category under Swedish law. The actual purpose of the grant determines which rules and document template are relevant.
| Intended land use | First compare these templates |
|---|---|
| Storage area, allotment without a residential building, or another land grant that is not agricultural, residential or commercial-facility lease | Land lease agreement; Other land lease (lägenhetsarrende) |
| Farming, cultivation, arable land or grazing | Agricultural land lease agreement |
| Land on which the tenant may erect or keep a residential building for living purposes | Residential land lease agreement |
| A building of more than minor importance for the tenant's business operations | Commercial-facility land lease agreement |
Important: Agricultural, residential and commercial-facility land leases generally require a written agreement with all its terms. An oral agreement can be valid for an other land lease (lägenhetsarrende) if the parties agree, but written terms are recommended. Security of tenure differs; an other land lease has no statutory right to renewal.
Jordabalken (1970:994), 8–11 kap. (svenska) · Sveriges Domstolar: lägenhetsarrende (svenska)
Choose the right lease template
Compare templates for Swedish lease categories, then review the land lease product's contents and intended use. Choose the agreement for the intended land use · Land lease agreement – Word, PDF and Excel template
Land Lease Agreement – 49 SEKIn-depth information
- The Land Code on leases
- Reasonable lease for a summer cottage
- Security of tenure for leases
- Building on non-freehold land
Sources
For cultivation or grazing, compare the agricultural land lease template in Word, PDF and Excel with the agricultural lease in Word/PDF. Check each product’s content and delivery information. Housing for the tenant requires consideration of farm-lease rules.
Templates in this article
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