I’ve never been told buying property in Sweden will give me a residence permit. Is this really a thing?

The short answer is a firm no, but despite this there has been a series of incidents of non-EU foreigners who were allegedly tricked into buying property in Sweden before moving, believing that owning property would make them eligible for a Swedish residence permit.

What’s the story? 

These incidents most recently grabbed headlines in June 2024, when public broadcaster SVT reported that a number of properties in Sweden had been sold to buyers in the Middle East well over market price, after the buyers were led to believe it would help them gain residence permits. The properties are all linked to businessman Kadry El Naggar, who runs the company Sweden for Investment.

As far back as 2013, SVT reported that another company owned by El Naggar, Swedish Connections, at the time told buyers in Egypt that buying property in Sweden would help speed up the process of getting a residence permit or even Swedish citizenship.

El Naggar has never been convicted of any crimes, but he has been sued by two previous buyers. In one of the cases, the purchase was cancelled, and the other buyer won their court case. He denied to SVT that his company offers its services under false pretence.

“I buy old houses and sell them on. I don’t sell permanent residency permits. That’s clear if you look at our sites,” he told SVT.

A note on his website reads “we do not issue visas or guarantee any residence permits as these are determined individually by the Swedish Migration Board”. But SVT reports that in several social media posts, El Naggar falsely claims that all foreigners need to get a Swedish residency permit is a bank statement showing a balance of at least 20,000 dollars (210,660 kronor), as well as a company and property.

How many properties have they sold?

According to SVT, there are 50 properties up and down the country linked to El Naggar, his wife or their company, with 32 of those in Norrland. Thirty-six properties currently have one or more foreign owners, with a total of 53 owners registered as living outside of Sweden.

The broadcaster also linked 37 different Sweden-registered companies to these owners, who are registered as living in a number of different countries, including Egypt, Saudi Arabia, Kuwait and Palestine.

Many of the properties are in relatively bad condition, sold via executive auction through the Swedish Enforcement Authority (Kronofogden).

One pharmacist from Egypt told SVT he had paid 188,000 kronor for a home in the village of Undrom outside Sollefteå in northern Sweden, with the dream of giving his children a better life, after Facebook adverts promised that he could get residency through buying a property.

He hasn’t even been able to visit his house in Undrom due to the cost of travelling to Sweden from Saudi Arabia, where he lives. 

He told SVT he had been warned by someone else who had been in a similar situation just before he was due to make the final payment on the home, and he then demanded to cancel the purchase, but the company refused. He has now hired lawyers in Egypt and Sweden.

“We’ve seen that this method has been ongoing for a while,” Migration Agency official Anette Bäcklund told SVT.

“And all of those people who have applied for a residence permit from us have had their applications denied. You need to follow certain rules to qualify for a residence permit, and that hasn’t been the case in these cases.”

How do I move to Sweden as an entrepreneur or investor?

It is possible to get a temporary residence permit as a self-employed person in Sweden, and permit holders who can support themselves and their families are eligible for permanent residency after just two years, but this requires more than just having a high enough bank balance, registering a company in Sweden and owning a property.

According to the Migration Agency, self-employed people must meet the following requirements in order to be granted a two-year residence permit:

• hold a valid passport
• show you have good experience of your industry and previous experience of running your own company
• show you have relevant knowledge of Swedish or English. For example, if you have contact with a number of suppliers or customers in Sweden, you need to be able to speak Swedish to a very high level
• prove that you are in charge of running the company and that you have decisive influence for it
• prove that you have enough money to support yourself and any family accompanying you (200,000 kronor for you, 100,000 kronor for an accompanying partner or spouse and 50,000 kronor for each accompanying child)
• show a credible foundation for your budget
• show that you have built a network of customers or other business network
• pay a fee in most cases (equal to the fee for a work permit)

The Migration Agency will then assess your business plans to determine whether or not you should be granted a permit. There is no requirement for applicants to own a property in Sweden.

If you are granted a two-year permit and want to apply for permanent residency once it runs out, there are further requirements. You will need to prove that you are still running the company, are complying with good accounting practices and have all the necessary permits for the business, among other things, at the time you renew your permit. 

Permanent residency applicants need to prove that they and their family have been living in “reasonable” housing conditions, but there is no stipulation that they must own this home.