Late Fees and Penalty Interest for Commercial Tenants in Sweden

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):

1. 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.
2. 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).
3. 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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