Government measures in key jurisdictions 3rd edition final - Flipbook - Page 124
Sweden
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
On 16 April 2020, the Swedish Government decided on an ordinance concerning temporary
reduction of fixed rental costs in sectors which have been negatively affected by the COVID-19
pandemic. The new regulation is believed to mitigate the financial consequences of the virus
outbreak. Sectors covered by the ordinance include, inter alia, hotel, restaurant and retail sectors as
well as consumer services sections such as dentists, physiotherapist practices, and hair and beauty
salons. In total, the Swedish Government has allocated SEK 5 billion for rent reductions.
If a landlord and a tenant (which is active in a vulnerable sector) have agreed on a reduction of the
rent for the period between 1 April 2020 and 30 June 2020, the landlord will be able to seek support
to compensate part of the reduction. The compensation provided will be a maximum of 50 per cent
of the reduced fixed rent, i.e. the discount that the landlord and tenant have agreed on for the
period from 1 April 2020 to 30 June 2020. However, the support can never exceed 25 per cent of the
original fixed rent amount. It should further be noted that the agreement on the temporary discount
must be entered into by 30 June 2020 and that a tenant (where a group is seen as one and the same
tenant) cannot obtain an advantage exceeding EUR 800,000.
Compensation can be applied for by the landlord from 1 July 2020 until 31 August 2020.
The Swedish Fortifications Agency (Sw. Fortifikationsverket) and the National Property Board Sweden
(Sw. Statens Fastighetsverk) are temporary exempted from the requirement to charge interest when
granting deferment of rental payments. Under Swedish law, public authorities are normally required
to charge interest according to the interest rate set forth for each financial year by the National Debt
Office (Sw. Riksgälden), with an addition of two percentage points when granting credit or deferment
with a payment.
The temporary exemption applies to all tenants of the two aforementioned authorities who, in
agreement with their landlord, have been allowed to postpone their rental payments in 2020,
regardless of whether the tenant is active within the public or private sector and regardless of
industry, region or the size of company. The largest proportion of the tenants are state actors.
However, the authorities also have private tenants such as technology and real estate companies,
industrial companies and restaurants.
Litigation
Are the courts
operating?
124
The Swedish courts are operating normally, while observing social distancing guidelines and COVID-19related precautions. In principle, the courts continue to hear cases, prioritizing urgent cases (youth, family
law and certain criminal matters). Many hearings are still being cancelled and postponed. The number of
hearings carried out remotely via video conferencing technology has increased. The Swedish National
Courts Administration produces statistics on how the courts are affected by the corona pandemic (the
statistics will not be updated online during the summer months).
Government measures in key jurisdictions