Inheritance, gift and transfer of a cabin

Distinguish gift, inheritance and sale

These are treated very differently for tax purposes. • Gift: a pure gift with no payment — the recipient takes over the giver's original purchase price and only pays for a new title deed. • Inheritance: transfer on death via estate inventory or will — the heir takes over the deceased's purchase price. • Sale: transfer against payment — capital gains taxed on the seller.

Gifting a cabin

• Draw up a signed and witnessed written gift deed (gåvobrev)
• If the recipient is married and the gift should be separate property, write it in clearly
• The recipient applies for a new title deed at Lantmäteriet
• No stamp duty for a pure gift (no payment), but an administrative fee of ~SEK 825 applies
• If any payment is 85% or more of the tax value, it counts as a sale — stamp duty (1.5%) applies and capital gains tax is triggered for the giver

Inheritance and estate inventory

• An estate inventory (bouppteckning) must be filed within three months of death and sent to the Tax Agency
• The cabin is valued in the inventory — usually at market value
• The estate distribution divides assets among heirs
• A new title deed is applied for after the distribution or inventory is registered
• If several inherit, one can buy out the others or the heirs can own it jointly

Cohabitants, spouses and stepchildren

Cohabitants do not automatically inherit — a will is required. Spouses inherit before common children, but stepchildren (children outside the marriage) have the right to their share directly. A will can limit this to the compulsory share (half). This matters even more when a large asset like a cabin is involved.

Owning a cabin together

• Sign a co-ownership agreement — who pays running costs, maintenance, insurance?
• Agree on how usage is shared (weeks, weekends, seasons)
• Agree rules for renting out and renovations
• What happens if one owner wants to sell their share? Who has right of first refusal?
• Consider a company or foundation with many owners or a large family

Tax on a future sale

Whoever takes over via gift or inheritance uses the giver's/deceased's original purchase price to calculate the capital gain. If the cabin was bought long ago, the gain can be very large. Calculate the tax (22% of 5/6 of the gain = 18.33% effective) in good time — and keep all renovation receipts, they are deductible.

Practical tips

• Use a lawyer for gift deeds, wills and co-ownership agreements
• Contact the bank if there is a mortgage — they must approve the takeover
• Inform the insurance company of the new owner
• Update contracts for water, sewage, electricity and waste collection
• Keep all documents together with the title deed