New inquiry appointed to facilitate divestment of property holdings that threaten national security
Published
To mitigate security threats posed by certain property holdings, an inquiry has been appointed to propose changes to the Expropriation Act, i.e. the legislation under which a property owner may be compelled to transfer their property holding. The purpose is to ensure that Sweden’s Government can act when a property is at risk of being used in a way that threatens national security.
– This means that the state will have a new tool to prevent anyone from using a property, for example, to plan sabotage or to conduct espionage against Sweden. We see that there are situations in which property holdings can pose a threat to our country. Therefore, we need to review the legislation so that we can act more forcefully when required, says Minister for Defence Pål Jonson.
The deteriorating security situation places new demands on Sweden’s ability to protect itself against threats. The risk of real estate properties being used for sabotage, intelligence-gathering or other activities that constitute a security threat must be managed effectively. The inquiry will therefore analyse how introduction of a new expropriation purpose can help to mitigate such risks and strengthen national security.
Stronger protection against security threats
The possibilities to expropriate properties whose ownership may pose risks to Sweden’s security are currently limited. The new inquiry will analyse current legislation and propose introducing a new expropriation purpose to enable measures against property holdings that are being used in a way that poses a security threat.
The inquiry will amongst other things:
- identify the existing possibilities under current legislation to expropriate properties that may pose a security threat;
- propose a new expropriation purpose that enables expropriation to mitigate risks to national security;
- analyse which conditions should apply for measures to be taken based on the new expropriation purpose;
- investigate what compensation should be paid when the new expropriation purpose is applied; and
- ensure that proposals are compatible with the protection of property in the Instrument of Government, the European Convention for the Protection of Human Rights and the EU Charter of Fundamental Rights.
The inquiry will also present the necessary legislative proposals to implement the proposed amendments.
Senior Judge of the Court of Appeal Henrik Matz has been appointed as the inquiry chair.
The inquiry is to present its report no later than 31 March 2027.
Facts about expropriation
What does expropriation mean?
Expropriation is a procedure in which the owner of a property is forced to transfer ownership to another party for financial compensation. Expropriation can also apply solely to the right of use of a property, which means that the owner can retain ownership, but is forced to transfer the right to use, rent or let out the property to another party.
How does expropriation work?
An application for an expropriation permit is made to the Government, which examines the matter. The Government may transfer the matter to a county administrative board or, where there are special grounds, to another government agency to examine the question of an expropriation permit, under certain conditions.
If the Government grants an expropriation permit, then an application for a writ of summons must be submitted to a court to establish what compensation should be given.
