Arrende
Arrende is an agreed right to use land in return for a fee, where the leaseholder may use the ground for a set purpose without owning it. The right is limited in time and arises from an agreement between the landowner and the leaseholder, unlike ownership, which is a lasting control over the property itself.
The rules are set out in jordabalken (1970:994), the Swedish land code. Chapter 7 gives the general provisions on nyttjanderätter in general, that is, agreed rights of use such as arrende and hyra (tenancy), while chapter 8 gathers the provisions that apply to all forms of arrende. Three separate chapters then follow for three of the four statutory forms: jordbruksarrende in chapter 9, bostadsarrende in chapter 10 and anläggningsarrende in chapter 11. The fourth form, lägenhetsarrende, has no chapter of its own and is governed only by the general provisions in chapters 7 and 8, which gives the parties wide freedom of contract, but at the same time the weakest statutory protection.
The four forms differ according to the purpose of the use. Jordbruksarrende covers land for agricultural operations. Bostadsarrende applies when the leaseholder has the right to keep a dwelling house on the plot and the use is not agriculture, typically a holiday plot with the leaseholder's own cabin. Anläggningsarrende applies when the leaseholder is to have a building for commercial activity on the plot, for example a campsite or a facility, without the purpose being agriculture. Lägenhetsarrende is the residual category: neither agriculture, housing nor a commercial facility, for example an agreement to put up an advertising sign or to store boats on a piece of land.
Jordbruksarrende, bostadsarrende and anläggningsarrende all have a form of besittningsskydd, that is, a right to have the agreement extended or to receive compensation when the landowner terminates the arrende without an accepted reason. Lägenhetsarrende has no such protection in the act; the leaseholder must make sure the protection follows directly from the agreement. Besittningsskydd means that a landowner cannot freely refuse to extend a jordbruksarrende or bostadsarrende simply because the land has become more valuable, and it is therefore the closest Swedish parallel to the protection against termination in Norwegian tenancy and ground lease law.
Arrende differs from tomträtt on two decisive points. Tomträtt can only be granted by the state, a municipality or, exceptionally, a foundation, while arrende can be agreed with any landowner, private or public. More importantly, there is the question of duration: tomträtt is a running right, in practice perpetual, with fixed avgäld periods, while an arrende always has an agreed term that expires, even though besittningsskydd may give the leaseholder a right to an extension. Arrende also differs from an ordinary hyresavtal (tenancy agreement): hyra, governed by chapter 12 of jordabalken, covers the right to use a building or part of a building, while arrende covers the right to use the ground itself.
The closest Norwegian parallel is tomtefeste and ordinary ground rent. The difference lies in the structure: Norwegian ground lease law in practice gathers all long-term rights of use for residential and holiday plots in one act, tomtefesteloven, with a leaseholder who under the act has a claim to an extension on the same terms and therefore a right that is in practice perpetual. Sweden has instead split arrende into four statutory forms with different purposes and different statutory protection, and none of them gives the leaseholder any comparable right to perpetual extension; a Swedish arrende is always limited in time, even when besittningsskydd extends it repeatedly.
From the Placepoint glossary: Arrende
More information: Riksdagen: Jordabalk (1970:994), Domstol.se: Allmänt om arrende, Naturvårdsverket: Arrenden
English: Land lease / usufruct right to agricultural, residential, facility or other land (Swedish-specific: four distinct statutory forms).
Frequently asked questions
What is arrende?
Arrende is an agreed, time-limited right to use land in return for a fee, without the leaseholder owning the ground. The rules are set out in jordabalken, chapters 7 to 11.
Which forms of arrende are there?
Four: jordbruksarrende (agricultural operations), bostadsarrende (a dwelling on the plot, often a holiday house), anläggningsarrende (a commercial building on the plot) and lägenhetsarrende (everything else, with no chapter of its own in the act).
Do all forms of arrende have protection against termination?
No. Jordbruksarrende, bostadsarrende and anläggningsarrende have besittningsskydd. Lägenhetsarrende does not, and the protection must then be agreed separately.
What is the difference between arrende and tomträtt?
Tomträtt can only be granted by the state or a municipality and is in practice a perpetual right. Arrende can be agreed with any landowner, but it always has an agreed term that eventually expires, even with besittningsskydd.
Is arrende the same as an ordinary lease agreement?
No. An ordinary hyresavtal under chapter 12 of jordabalken covers the right to use a building or part of a building. Arrende covers the right to use the ground itself.
Does arrende correspond to Norwegian tomtefeste?
Partly. Norwegian tomtefeste is a single statutory scheme that in practice gives the leaseholder a perpetual right. Sweden instead has four separate forms of arrende, none of them perpetual, with different statutory protection depending on what the land is used for.