Late Fees and Penalty Interest for Commercial Tenants in Sweden
B2B rules for late fees and penalty interest in Sweden. Learn about statutory compensation for debt collection and high commercial interest rates.
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This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Late payment of commercial rent in Sweden is governed by the Interest Act (SFS 1975:635), which entered into force on 1 January 1976, and the Act on Compensation for Debt Collection Costs etc. (SFS 1981:739), which was issued on 9 July 1981 (with key amendments, including Section 4a, entering into force on 16 March 2013). Within Business-to-Business (B2B) relationships, property owners have significant statutory authority to impose penalty interest and fixed compensation, while the Land Code (Jordabalken) provides strict timelines for forfeiture and eviction.
1. Fixed Statutory Delay Compensation (B2B Only)
Under Section 4 a of the Act on Compensation for Debt Collection Costs (SFS 1981:739), which implements EU Directive 2011/7/EU, a landlord is entitled to a fixed compensation fee for late payments from corporate tenants (and government entities).
A Swedish landlord may directly impose a fixed sum of 450 SEK ("Förseningsersättning") for each late payment. Unlike the consumer-capped reminder fee of 60 SEK, this B2B compensation:
- Applies immediately once the payment is overdue.
- Does not require a prior reminder or notice of default.
- Covers administrative and collection costs incurred by the creditor.
2. Penalty Interest and Contractual Freedom
While residential tenancies are strictly regulated, commercial leases allow for broad freedom of contract regarding interest rates.
- Statutory Default Interest: If the lease agreement does not specify a rate, Section 6 of the Interest Act (1975:635) applies. The statutory interest rate is the Central Bank (Riksbanken) reference rate plus 8 percentage points.
- Contractual Interest: In most commercial contracts, landlords negotiate significantly higher penalty interest rates (often between 15% and 24% annually) to deter late payments.
- No Notification Requirement: Under the principle of dies interpellat pro homine, if a payment date is fixed in the contract, interest begins to accrue automatically from the day after the due date without the need for a formal demand.
3. Forfeiture and the "Recovery Period"
Persistent or material late payment triggers the forfeiture provisions of Chapter 12 of the Land Code (SFS 1970:994):
- Forfeiture (Förverkande): According to Ch. 12, s. 42, the right to the lease is forfeited if the tenant fails to pay rent within two weekdays of the due date.
- Termination Notice: The landlord must serve a formal termination notice. For commercial tenants (lokaler), the lease can be saved if the tenant pays the full debt within a two-week recovery period (återvinningsfrist) from the date they are served with notice and informed of their right to recover (Ch. 12, s. 44).
- Enforcement (Kronofogden): If the tenant fails to pay within the two-week period, the landlord can apply for eviction through the Swedish Enforcement Authority (Kronofogden) or initiate proceedings in the District Court (Tingsrätt).
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Frequently Asked Questions
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Sweden has one of the world\'s most regulated rental markets, primarily governed by the Tenancy Act (Land Code Chapter 12). Recent reforms in 2026 have significantly tightened the rules regarding the secondary (subletting) market. This guide covers the essential compliance requirements for property owners and landlords.
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The eviction process in Sweden requires landlords to follow formal legal procedures. Valid grounds typically include non-payment of rent, lease violations, or the landlord's personal use of the property. Landlords must provide proper written notice, allow any required cure periods, and may need to obtain a court or tribunal order. Self-help evictions are generally prohibited.
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Lease agreements in Sweden must comply with applicable national and local laws. Required elements typically include the names of both parties, property description, rent amount and payment terms, deposit details, lease duration, and maintenance responsibility allocation. Written leases may be required for certain tenancy types or durations.
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Landlords in Sweden are generally required to maintain rental properties in a habitable condition, keeping the structure, plumbing, electrical systems, and essential services in proper working order. The specific allocation of maintenance responsibilities between landlord and tenant should be clearly documented in the lease agreement.
Read the complete guide▶What are the late fee and penalty rules for rental properties in Sweden?
Sweden has specific rules regarding late fees and penalties for overdue rent. These may include mandatory grace periods, caps on late fee amounts, and restrictions on interest charges. Late fee provisions should be clearly stated in the lease agreement and must comply with local regulations to be enforceable.
Read the complete guide▶What property disclosures are landlords required to make in Sweden?
Landlords in Sweden must disclose relevant information about the property to prospective tenants before the lease is signed. Required disclosures typically include known material defects, environmental hazards, previous damage history, and any conditions that could affect the tenant's use and enjoyment of the property.
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