Investing in property
in France from Sweden

In practice, it is a French bank that finances your property in France, under the HCSF standard: a 35% debt ratio, insurance included, and 25 years at most. It looks at your income in Swedish kronor with caution, because its value in euros varies with the exchange rate: a fall in the krona increases your monthly payment in euros. Not all banks accept non-residents; the choice of banks, the order in which you approach them and the presentation of the application make the difference. A mortgage in kronor from a French bank is only possible if you mainly earn your income or hold your assets in that currency; most applications are financed in euros.

Also read: which banks lend to expats and how much down payment to plan for.

The 1990 treaty only covers, on the French side, income tax: nothing guarantees that Sweden will deduct the 7.5% solidarity levy. An amendment signed on 22 May 2023, in force since 29 August 2026 and applied from 2027, mainly adds an anti-abuse clause, without changing these rules. Above €50,000 of taxable capital gain, a surcharge of 2% to 6% is added in France. The €150,000 exemption on the capital gain (French or European national, domiciled in France for at least two years) and the exemption for the former main residence sold no later than 31 December of the year following departure remain available, subject to conditions. Note: they only apply in France. If you are a Swedish resident in the year of sale, Sweden taxes the capital gain, with no French tax to deduct.

Also read: how the rents of a non-resident are taxed.

Note, in Sweden: a French SCI may be treated differently there than in France, which may complicate the deduction of French tax. To be studied with a Swedish adviser before buying through a company.

The right choice depends on your project and your country: compare with the rental income tax calculator.

As a Swedish resident, you declare in Sweden the rents from your property in France. Everything depends on how the property is used. If you or your relatives occupy it, or intend to occupy it, for more than half of its surface area, it is a private dwelling (privatbostad): the rents are taxed at 30% after an allowance of 40,000 kronor per year and per dwelling, then 20% of the rents. If you rent it out entirely to others, it is an income-producing property (näringsfastighet): the rents, net of expenses, interest and depreciation, are declared as business income, on schedule NE. In both cases, you claim the deduction for French tax in your Swedish return and keep your French tax notice.

The sale of a property located abroad is taxed in Sweden like that of a property located in Sweden, as capital income: on schedule K5 for a private dwelling, on schedule K7 for an income-producing property. French tax on the capital gain is deducted from Swedish tax, up to the amount of that tax. If France exempts you, there is nothing to deduct: Sweden then taxes the capital gain alone.

The steps of the ImmoPourExpat method, from the first call to letting →