Getting closer!

We're in Sweden this weekend, visiting Margaret and celebrating Marcia and Rutger's birthdays. We will be taking a tour through the USA the next couple of weeks for a few visits before we return "for good" to Sweden on May Day. I still have to settle the shipping of our goods from London, but we expect they'll follow a week or two after.

One thing we wanted to do yesterday was to meet with Skatteverket, the Swedish tax authorities, to apply for extended residency as we are planning to stay the whole summer. I received advice which indicated we could be "secondary residents" of Sweden as long as our house was not our primary residence for the majority of the year. Thankfully, that's exactly the case, so I didn't expect any problems.

The tax office interview wasn't as smooth as I had hoped. The good news is there are no issues with our physically being at out little stuga for 4 or 5 months as we have planned. The bad news is that it looks unlikely we will get our personnummers made active.

As I've written a few years ago, most everything in Swedish society, big and small, hinges on one's number. We can get by without one, but things are a lot more difficult. I am hoping against hope that the authorities will look kindly on us!

House prices in Stockholm

They're pretty darned high, and only going higher. The Economist has a good (although slightly technical) article about the problem and the difficulty of addressing it.

Between these issues, and the huge growth in Varmdö kommun, I'm glad we built when we did!

Östanviks Gård

Our neighbouring island of Nämdö is known mostly (to me, at least) as the home of Guns Livs, the grocery store, and its beautiful church.

But Nämdö is much more than that, of course. It's been inhabited since the 13th century and farmed since the 16th. Today, about a hundred people live on the island full-time. It has a number of great walking trails and even a few gravel roads along its length.

There is a big barn on the east side of the island at Östanvik, visible from the sea on the way to Guns. It's the site of a farm which has been on that site for many years, now operated under the auspices of the Skärgårdsstiftelsen.

The farm shop at Östanviks Gård is open on Mondays, Wednesdays, and Saturdays during the summer. Since we have a boat now, Sooz and I decided to pop over to have a look. The weather today wasn't great, but at least it wasn't raining. We've decided that we can't wait for perfect weather whenever we want to take a trip!

We had a fun time. I'm happy to report that our boating skills are improving, and we made the journey with no fuss. The farm itself was really nice. We got to chat with Stina and Jon about their life on the island as farmers. We picked up some fresh bread, local spinach, and their lamb salami. Photos from the trip are on the July photo page.

Having a boat makes a big difference. To know that we can make a trip pretty much whenever we want changes the way we think about being here for longer visits. We're no longer reliant on the boat and bus timetables...or the generosity of our neighbours. Now we can live much more like the locals!

Letter from Värmdö Kommun

I received a multi-page letter earlier this week from the local government on Värmdö. It alarmed me a bit, so I asked my friend Anette to take a quick look for me before I settled down for a full translation. I also sent a copy to Willie, too. They both told me the letter had to do with our waste water tank and the kommun wanted more information about it.

It appeared that I had needed to send a statement back to the kommun after our grey water system was installed to show it was done according to the rules. I had not done that, and to make matters worse, I never responded to letters they sent me earlier in the year (because I never received them, of course.)

So they sent someone out to take a look. They found  I was missing an air pipe at the end of the trench to oxygenate the bacteria, and they were also unable to tell much about the installation since it had grown over the past five years. They also charged me a fee of 4500kr for the cost of their visit.

I sent a copy of the letter to both Anders (our bathroom builders) and Janne for their feedback. Janne and I talked. He gave me good information about the trench he had dug, and the preparations completed for the water system. I will talk to Anders again soon about his work on the water, and about adding an air pipe.

The most important conversation I had was with Camilla at Värmdö Kommun. She was very kind in explaining everything to me in English, and also agreed to waive the visiting fee, since I had obviously never received any of her previous correspondence. I'll get the installation information together, and be back to her, although I may just have Janne and/or Anders speak with her directly. I'll install the air pipe this summer.

So... a bit of a complication, but nothing big, and easily fixable. I'm especially happy to report that he people at Värmdö were very nice to a slightly befuddled, but well-meaning Texan over the phone.

The Arbetsdag

Yesterday was a great day. First off, it was sunny and beautiful for a change. I took advantage of the morning sunshine to clean and water seal the deck of the guest house.

Then it was time for the spring "working day" (arbetsdag in Swedish). Twice a year, residents assemble to take care of various tasks to maintain Aspö's infrastructure. I've always wanted to be part of the working day, and this year was my chance.

Lots of people assembled on the midsummer meadow, and a list of the day's jobs were discussed. One of the major tasks was to maintain the low spots on the path. Big bags of gravel had been brought in to spread around. A wood chipper was also used to mulch fallen branches and provide more path cover. I thought I might do that, since I was one of the younger people there at the beginning. Fortunately, though, lots of actual young people showed up and I was able to leave the hauling and chipping to them.

I instead volunteered to cut new pieces of wood for the path markings. I was able to bring the timber over to my house easily, and it was a simple enough job that I could do it without messing up! It turned out that I had to cut 50, though, so it took me a couple of hours.

Others volunteered to paint my cut pieces, so we had a nice assembly line going. After a day's drying, the new markers will be put up in place of the old faded ones. I like the thought that, on future walks around Aspö, it'll be a little bit of my work marking the path!

We all took a lunch break at 12:30. Peter grilled korvs for everyone, and Jeanette handed out cold beers. A perfect afternoon. I tagged a bunch of photos for quick viewing.

When the work was done, I walked over to Bosse's house and took possession of my new boat. Tony said I could keep it at his dock, so I motored over to find him waiting for me. He even made a little nameplate for my spot! (A photo of that, among lots of other stuff, is on the May photo page.)

The day ended splendidly; Peter and Jeanette invited me over for dinner. Peter grilled an amazing steak, and Jeanette shared her special pesto potatoes. We also drank quite a bit of very nice red wine! It was a superb evening to cap a really special day.

Skatteverket

The dark blue envelopes from the nice people at Skatteverket arrived recently. I've written before about my dealings with the Swedish tax authorities. Looking back, I was always concerned that my tax bill was always zero. That is pretty funny; most people would be thrilled with no tax bill!

Last October, I wrote that I expected a bill this year of 5-6000 kronor. I am ironically happy to report that I did indeed receive a bill this time, of 3500 kronor. So I was right about the timing, although the amount was about half.

In subsequent years, though, I think my bill will raise to the amount I was expecting. There is a period of transition from a zero tax rate to the full rate. Even the Swedish tax authorities don't give the full whack on the first year!

The rest was easy. I was able to file my taxes over the phone, through an English-speaking automated phone line. A few clicks online through my Nordea account paid my bill instantly.

If only my dealings with the IRS here in America were as simple (or as cheap!)

The Return of Skatteverket

I received my property tax declaration from the nice people at Skatteverket, the Swedish tax authorities.

Readers of this blog with long memories may remember that I received my last one almost three years ago.

It was quite straightforward; essentially all it asked was if I had made any changes to the property which may have increased its value. Instructions in English were available online.

The list of things impacting the value of a house are wide-ranging. Besides basic things like the size of the house and its construction material, there are others: How close is it to the water? Does it have a basement, a heating system, a garage, a flush toilet, a second floor? How nice is the kitchen?

Actually, the kitchen question was relevant for us this time around. After reading the description, it was clear that our kitchen is now a "normal standard," so I made that change on this declaration.

I did note that adding a värmepump won't change the value of the house for tax purposes. In fact, nothing I would realistically do to our little stuga would move it into a higher tax bracket, thankfully.

Next year should be the first year I will have to pay property taxes on our house. I think my bill should be in the range of 5 to 6 thousand kronor ($600-800). This depends, of course, to no changes to the Swedish tax code in the meantime. So we shall see...

Housing shortages in Stockholm

The Economist's recent issue has an article on property bubbles. Although it talks about European house prices, Sweden— and Stockholm in particular—is the prime example cited.

In summary, it's largely an issue of supply and demand. Not enough new homes are being built in the city to meet the need. Add to that comparatively easy credit, and prices keep going up and up.

Different countries are trying a range of solutions. The Netherlands, for example, has tightened credit and tax rules for mortgages. The UK is working to re-purpose currently empty buildings into residential use through a public forum.

Sweden is taking another tack. I remember Annika and Olle telling me about a change in the law this summer, allowing structures of 25 square meters to be built without planning permission. I hadn't thought much about it; after all, I have my guest house already, and the previous rules allowed structures up to 15m².

The Economist straightened me out, however. These new structures, referred to as an Attefallshus, is the government's response to the housing shortage. They're just the right size to serve as a guest house or a mini rental property. A landowner could put one up in their garden with little trouble, providing quick housing to the rental market.

I found a company that specializes in these little houses. Enkelrum (English translation) provide a range of finished homes that can be dropped in, complete and ready for living, with a crane. They are nice looking little places.

We've already been thinking a bit about our guest house. It is 20m², so a bit smaller than these houses, but still a good size. Essentially it is just a bedroom now. I think, with a bit of reshuffling, we could install a mini-kitchen and carve out more living space. If we find ourselves with more long-term guests, it would be a good project for the future.

Personnummers

When we moved to Sweden in 1989, it was immediately apparent that the most important thing we needed to be part of Swedish life was a personal identity number, or personnummer. Everyone in Sweden has one; it's like a social security number in the US or national insurance in the UK, but even more so.

In Sweden, even 25 years ago, everything that had to do with the government in any way was tied to one's personnummer. Sooz and I got our own numbers, and I have kept the original document to this day.

When we moved away from Sweden, those numbers were kept, but turned inactive. When we returned to build our stuga, I found we couldn't use them to open our bank account, as personnummers are only for residents. So we had to use a workaround for our bank, the electric company, the tax authorities, etc. Although everything is set now, it was much harder to do without a personnummer. A recent column on The Local describes the problem of the numberless very well.

Workarounds aren't always available. Sooz has been trying to get a bonus card (for discounts and deals) at our local ICA for at least a year. Her application has been either ignored or rejected for various reasons. I called ICA on my last visit and finally got to the bottom of the mystery: we needed a personnummer. Sooz couldn't even get a discount card at the grocery without it. She has a Swedish driver's license, we own a home and pay taxes in Sweden, we're both EU citizens, we both had personnummers, but no number, no grocery card. Annoying.

I heard a story on Swedish radio which indicates I'm not the only one impacted by this numberless status. The National Board of Trade wants authorities to make it easier for foreign nationals to obtain a number, and therefore move more easily into daily life. I'd love to re-activate my old number one day!

"What Sweden Can Teach America"

An interesting article and short video on the CNN website pokes holes in the thinking that Sweden is a big-government, socialist paradise. To quote:

"It turns out that socialist Sweden is not as socialist or crazy as the American right would have you believe. Instead, the changes of the last two decades reveal a Swedish government and people who are pragmatic and adaptable."

The idea is that Swedish government is not really 'big', but rather 'smart'. Of course nothing is perfect, and I know Rutger and Janne can point out many flaws about life in Sweden. But it is interesting to see that significant social and political changes can happen. That's perhaps the most important lesson to be learned in the US.

Skatteverket

I received a familiar dark-blue envelope in my Texas mailbox the other day. The nice people at the Swedish tax authorities, Skatteverket, have tracked me down.

Actually, I was at least partially pleased to see the forms, as it proved at least that I correctly sent in my new address. And, reading the documents inside, I was not that upset to see what Sketteverket sent me.

I've posted previously about being a bit uneasy that my tax bill has been zero. Not that I mind, of course, but, knowing the tax regime in Sweden, I know that 'zero' is not a number they use very often. I had a nagging feeling that one day, some unknown bill would come due.

My dark blue envelope contained a förslag småhusenhet fastighetstaxering which is essentially a property tax proposal. It asked me to review their data about our little house and to update it if needed, as changes to the size or fittings of a summer house change its tax value. The homeowner fills out a survey about many elements of the property, and the answers are used to determine the tax base. The form's instructions are available in English on Skatteverket's website for those interested.

The good news for me is that our property and our little house was accurately recorded in Skatteverket's questionnaire. So my concerns about not being on the tax rolls are abated; I obviously did it right the first time. Secondly, since there haven't been any substantive changes to the house, there's no need for me to send anything in. Our new home value will be sent to us in July 2012.

It appears that new home construction has a 5-year tax holiday, so I have a couple more years before I start supporting the social state.

Skatteverket

... is, as you may remember, the Swedish tax authority. My tax forms arrived to my Texas address this week, and once again, my net tax is zero. I like that figure, but I admit I still retain a nagging feeling that I should owe something.

Rutger happened to be visiting and he looked at my papers. He agrees that I have properly registered my house; all the numbers and names match, so I'm not hiding or misrepresenting anything. If the authorities say I don't owe them anything, I'm going to believe them.

Skatteverket has a cool iPhone app to submit your taxes; unfortunately, it doesn't work from the USA as their text number isn't recognized. I had to do it over the internet, but that took about a minute.

There's a wealth of info in English on the Skatteverket website. My favorite is "Purchasing and performing undeclared work in Sweden". These guys are serious about collecting tax on everything.

Our land is registered!!

As I expected, a bunch of documents came from Lantmäteriet today, and to the best of our Swedish comprehension skills, our land is now officially registered in our names.

The key phrase for me was underrättelse, lagfart which translates to "notification of title registration"; a pretty good clue. Of course there's a 4575kr fee for the registration. But it's ours now!

Our contract's back from Lantmäteriet

...but that was all we got, our original contract back with a stamp on it, and a number handwritten on the stamp. No other documents, just the contract in a big envelope.

I assume more info will be forthcoming, but I take this as a good sign!

Letter from Ann-Catrin

A signed note from Ann-Catrin arrived today, and I'm sending it, along with our original land purchase contract, back to Lantmäteriet for another go.

I wrote a cover letter in Swedish. I tried to keep it simple, but let's hope not too simple. I don't want the authorities to think a 6 year-old is trying to register a land purchase!

Swedish bureaucracy

This is an interesting twist. When I came home tonight, I found the postman had delivered a thick envelope from our friends at Lantmäteriet.

Inside were all the papers I sent them as part of my application, each dutifully stamped and initialed in an official manner, plus a big detailed printout called a inskrivningsdagbok, which I translated as "enrollment diary".

It appears to me that everything has been officially approved and recorded, despite our rejection letter of earlier in the week.

I've sent scans of the inskrivningsdagbok to Tony and Rutger for their opinion. Stay tuned.

UPDATE: I talked to Rutger and my optimism was misplaced; our application is still "avslag", or rejected. We still need to submit a note from Ann-Catrin, which is on its way to me.

Reply to Lantmäteriet

I talked to Tony and it appears the people at the Lantmäteriet need a short statement from Ann-Catrin regarding the land sale. She will send me a letter with her approval and I'll send all the paperwork back.

As Janne said, "at least we have a dialog with the authorities," so I'm relaxed that it will all be sorted out.

We've received a letter today...

... from the Lantmäteriet about the registration of our land (as I had posted previously).

Unfortunately, it's been rejected. Sooz has translated the letter, and it appears there's a problem with the purchase contract. I don't believe there's anything significant, however.

I'll send a copy of the letter to Tony tonight so we can determine what to do next.

Registering the land

Last month, Tony brought us a form from the Swedish tax authorities (in Swedish, Skatteverket), showing that he was still owner of the land we bought from him nearly two years ago.

It turns out I had been careful about registering the house with the kommun, but I didn't complete registration of the land sale. Tony and Janne gave us information on how to handle the process; they both made a number of phone calls, and Janne gave me a couple of draft letters to send to the right people.

The first thing was to clear the sale through Värmdö Kommun. The kommun retains right of first refusal on the sale of all land in the archipelago. Usually, they want to keep hold of shoreline and blocks of land for nature preserves, so I wasn't worried about their wanting dibs on my little rock. A couple of weeks ago, I gathered all the documents, wrote a cover letter in Swedish, and sent it all off to Värmdö.

Yesterday I got the good news that all was approved, and I received my land contract with the appropriate seals and other documentation. That allowed me to make the next step, which was to send their OK and another letter off to the Lantmäteriet, the authority in charge of land registrations.

Assuming I've done it all correctly, the land will then be registered in my name and Tony won't be bothered by the tax authorities any longer. Of course, that means I'll be bothered by the people at Skatteverket, but that's for a future post.

Leaving Sweden once again

Another airport post just before we take off. Apparently this flight is oversold, they're offering €300 each to take a flight through Oslo arriving at 9:30PM. That is tempting but we all really need to be back earlier than that.

Anyways, we went to Bauhaus and IKEA first thing this morning to return/exchange/buy more stuff. There was a pretty good scrum at IKEA right when they opened. By 11AM, it was packed. One annoyance is that I need special long screws to attach the door handles. Nobody has them in stock so I will have to try to find them.

Rutger helped me finish the work Janne started on my tax form and that will be mailed off. We believe my bill should be about 6000 kronor a year for a freshly-built småhus like mine.

A last few photos in the webgallery. We are planning to make a 24 hour visit in December when we return for Christmas, so more photos then, but plenty of posts in the meantime.