Gift deed for a tenant-owner apartment – formal requirements, membership, and tax

Short answer: A gift of a cooperative apartment (bostadsrätt) must meet the formal requirements of the Cooperative Housing Act. The deed of gift must be in writing, signed, and clearly identify the cooperative apartment. Additionally, the recipient must normally be eligible for membership in the housing association.

Formal requirements for a gift of a cooperative apartment

The Cooperative Housing Act states that the rules for transfer agreements also apply to gifts. The deed of gift should therefore clearly state the parties involved and which apartment the transfer concerns.

Membership in the association

A person who acquires a cooperative apartment may generally not exercise the rights of the apartment until they are or have been accepted as a member of the association. In the case of a gift, the association's articles of association and membership requirements should therefore be checked before the transfer is carried out.

Whole or part of the cooperative apartment?

It is possible to give away all or a share of a cooperative apartment. If only a share is transferred, it should be specified exactly how large the share is and how the ownership will be structured afterward.

Conditions in the deed of gift

Common conditions may relate to the gift being separate property (enskild egendom), whether the donor is to retain any right of use, or how loans are to be handled. The conditions must be compatible with the Cooperative Housing Act, the association's articles of association, and other regulations.

Tax on gifts

Sweden has no gift tax. In a purely gratuitous transfer, the continuity principle is normally applied, which means that the recipient takes over the donor's tax position. If the recipient simultaneously takes over loans or provides other compensation, the assessment may become more complex.

Practical checklist

• check the association's articles of association
• identify the cooperative apartment correctly
• specify whether the whole or a share is being transferred
• regulate any conditions
• handle the membership application
• inform the association and provide a copy of the transfer document
• check tax and loans if compensation or debt assumption occurs

See the Mallbutiken template for a deed of gift for a cooperative apartment.

FAQ

Does the deed of gift need to be witnessed?

The fundamental transfer requirements of the Cooperative Housing Act are based on writing and signatures. Witnessing can still be used as additional evidence.

Can I give away 50 percent?

Yes, but the share must be described clearly, and the membership issue needs to be addressed.

Is the gift tax-free?

There is no Swedish gift tax, but future capital gains taxation and any compensation or debt assumption need to be evaluated.

This article provides general information and does not replace legal or tax advice.