Residency requirements for the board of a tenant-owner association

A tenant-owner association must meet certain residency requirements. Some people in the association must be resident within the European Economic Area (EEA). If the association does not meet these requirements, you can apply for an exemption.

A tenant-owner association must meet certain residency requirements. Some people in the association must be resident within the European Economic Area (EEA). If the association does not meet these requirements, you can apply for an exemption.

Residency requirements

Under the main rules, the following persons must be resident within the EEA:

• at least half of the board members
• at least half of the deputy board members
• the managing director
• at least one authorised signatory, if the board has appointed one

At least one authorised signatory must be resident within the EEA for the residency requirement to be met.

In this context, a person is considered resident in Sweden only if they are registered in the Swedish population register. This applies regardless of citizenship.

Apply for an exemption

If the association does not meet the requirements, you can apply for an exemption.

When is a person authorised to receive service of process required?

In addition to an exemption from the residency requirement, the association must have a representative who is registered in the Swedish population register.

If the association does not have an authorised representative who is resident in Sweden, the board must appoint and register a person authorised to receive service of process.

To be considered resident in Sweden, a person must be registered in the Swedish population register. Such persons have a full personal identity number with ten digits.

The following are considered authorised representatives:

• the managing director
• a board member
• a deputy board member who is authorised to sign on behalf of the association, either alone or jointly with others
• an authorised signatory who is authorised to sign alone or jointly

We cannot grant an exemption from the requirement to appoint a person authorised to receive service of process.

Does the association need an exemption?

Check whether it is possible to organise the management of the association so that no exemption is needed.

Can you avoid needing an exemption?

Consider whether the association can be organised so that no exemption is required.

Although it is not required under the main rules, it may be beneficial for the association to have at least one board member resident in Sweden. This can make it easier to deal with Swedish authorities.

Can the number of exemptions be reduced?

Check whether the number of exemptions can be reduced. For example, appoint more representatives who are resident within the EEA or review the signatory arrangements. A representative who is resident in Sweden or within the EEA can also be appointed as an authorised signatory.

If you are unsure when an exemption is required or how many are needed, contact us before submitting changes to the board and your application. Small adjustments may remove the need for an exemption entirely or in part.

Apply for an exemption for the board

If the association has determined that it needs an exemption, you can apply to us.

Pay a fee for each type of representative

You must pay a fee for each type of representative you apply for:

• board members and deputy board members
• the managing director
• authorised signatories

For example, pay two fees if you apply for an exemption for one board member and one or more authorised signatories.

You must pay the application fee even if the Swedish Companies Registration Office is processing another matter for the association, such as registration of the board. The exemption case normally needs to be decided before a registration decision can be approved.

We can only start processing your case once we have received the application fee.

The application must be in Swedish

The application must be in Swedish or translated into Swedish. The translation does not normally need to be carried out by an authorised translator.

When do we refuse an application?

We may refuse an application, for example if:

• the application fee has not been paid
• the application is withdrawn or lapses for other reasons
• the application is incomplete or not signed in original
• the association has not provided sufficient grounds for an exemption

If we consider that the association is not well managed, we may refuse the application or grant an exemption for a shorter period.

If necessary, we will request additional information before making a decision.

What happens if the association is not granted an exemption?

If the association is not granted an exemption, it must immediately comply with the residency requirements.

If the association does not meet the legal requirements, the Swedish Companies Registration Office will register a remark.

Appeal the decision

If we make a final decision to refuse an exemption, the association can usually appeal. The appeal must be addressed to the Administrative Court in Härnösand but sent to the Swedish Companies Registration Office. It must be received within two months from the date of the decision.

If you are granted an exemption

An exemption is usually granted for a limited period. To extend it, you must submit a new application.

Apply for a renewed exemption

If the association has an exemption that is about to expire, submit a new application well in advance.

A decision on exemption is no longer valid if, for example, the composition of the board or the residency of its members changes.

The conditions and the period of validity are stated in the decision. The Swedish Companies Registration Office will send a reminder before the exemption expires, but the association is responsible for ensuring that a new application is submitted in time.

It is not possible to obtain a retroactive exemption.