Î
Indirect protection of tenancy
•
Unlike in the case of residential leases, where the tenant
has a direct protection of tenancy, the tenant in a commercial
lease has an indirect protection. The indirect protection of
tenancy entails a right to compensation for the loss incurred
by the tenant if the lease is not extended with a rent (and other
terms) that correspond with market rent (and terms). It should
be noted that the right to compensation applies even at the
end of the term of the lease if the lease is terminated by the
landlord. There are exceptions to the right to compensation,
e.g. if the tenant has breached the terms of the lease (under
certain circumstances), if the property in question is to be
demolished or rebuilt and the landlord appoints replacement
premises reasonably acceptable for the tenant. There is also
an exception which requires a more sophisticated analysis of
the interest of the landlords to terminate the lease against the
interest of the tenant to continue the lease.
•
The Swedish Lease Act provides for a special rent tribunal that
can resolve certain disputes in relation to a commercial lease,
and in a dispute regarding what the market rent is in connec-
tion with a termination for change of rent, the rent tribunal
may also state what its opinion on market rent is. Such a state-
ment is almost always followed, or, alternatively, the basis for a
dispute on compensation for the tenant for a failure to extend
the lease by the landlord.
TaX
Î
Direct acquisition of a property
•
An acquisition of a property gives rise to stamp duty (Sw.
stämpelskatt). The stamp duty for registration of title for a real
property is 4.25 per cent when the property is acquired by a
legal entity. Otherwise, the stamp duty is 1.5 per cent.
•
It may be noted that if there has been an intra-group transfer
of a property prior to a share deal, the stamp duty may have
been postponed. In such case, the share transfer triggers pay-
ment of that postponed stamp duty (based on the purchase
price for that transfer and not the market value established in
the share deal).
Î
new mortgage
•
When a new mortgage deed is taken out, there is a stamp
duty of 2 per cent of its face value. It may be noted that the
mortgage deed may be reused for example when the property
is refinanced.
Investor Guide to Europe 2014 | 95
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