Running costs, tax and renovating a house
What a house costs to own over a year, how the municipal property fee differs from property tax, and what is required before you rebuild.
Applies to: Sweden. Reviewed 2026-09-18.
Key takeaways
- Completed houses pay the municipal property fee: 0.75 per cent of the assessed value up to an index-linked cap.
- The cap for houses is SEK 10,425 for income year 2026, declared in 2027.
- Undeveloped plots and buildings under construction pay state property tax instead, with no cap.
- Permits and notifications are decided by the municipality, and requirements differ between municipalities and between zoned and other areas.
A year of costs in a house
- Heating: district heating, heat pump, pellets, electricity or a combination.
- Household electricity, which varies with household size and habits.
- Water and sewage, waste collection, chimney sweeping and any sludge emptying.
- House insurance, often with add-ons for leakage or older installations.
- The municipal property fee.
- Ongoing maintenance and a set-aside for the larger works to come.
Property fee and property tax
An owner of a completed house pays the municipal property fee of 0.75 per cent of the assessed value, never more than the cap. The cap is index-linked and follows the income base amount. For income year 2026, declared in 2027, it is SEK 10,425; for income year 2025 it was SEK 10,074.
State property tax is still paid for undeveloped plots and for residential buildings under construction. There is no cap there.
Renovation and permits
The municipality decides permits and notifications under the Planning and Building Act. What requires a permit depends on the measure, on whether the property lies within a detailed development plan or built-up area, and on local rules. Always check with your municipality before planning a rebuild on the basis of general guidance.
Questions to ask
- Can I see actual electricity, heating and water consumption for three years?
- What heating system is installed, how old is it and when must it be replaced?
- Is there municipal water and sewage, or a private well and treatment plant?
- What is the assessed value and when was the last assessment?
Red flags
- A private sewage system with no record of when it was approved.
- Direct electric heating in a large house with no alternative heat source.
- Extensions or conversions without a permit or final approval.
Sources
- Property fee and property tax (Skatteverket)
- Municipal property fee 2008 and 2018–2026 (Skatteverket)
- Building permits and notifications (Boverket)