Estonia's €3,000 Per Inmate Cost Underpins Sweden's €8,500 Monthly Prison Rental Deal

Stockholm and Tallinn have finalized a landmark agreement for Sweden to lease prison cells in Estonia, a move driven by Sweden's severe prison overcrowding and the significant cost disparity in inmate maintenance. The deal highlights a substantial financial incentive for Sweden, which faces domestic costs exceeding €11,000 per prisoner per month, compared to Estonia's reported internal cost of approximately €3,000.

The agreement, signed by Estonian Minister of Justice and Digital Affairs Liisa-Ly Pakosta and Swedish Minister of Justice Gunnar Strömmer, will allow Sweden to house up to 600 inmates in 400 cells at Tartu Prison. Sweden will pay Estonia €8,500 per inmate per month for this arrangement. This figure represents a considerable saving for Sweden, which currently spends an average of €11,500 monthly to house a prisoner within its own borders.

The financial contrast was recently highlighted by entrepreneur Peter Vesterbacka, who stated in a tweet, > "Vangin majoitus ja ylläpito maksaa Virossa runsaat 3 000 euroa ja Ruotsissa yli 10 000 euroa kuukaudessa" (Prisoner accommodation and maintenance costs in Estonia are over €3,000 and in Sweden over €10,000 per month). Estonian Justice Minister Liisa Pakosta confirmed her country's internal cost, noting it is around €3,000 per month per prisoner.

Sweden's decision stems from a critical overcrowding crisis, with its prison system operating at 141% occupancy in some facilities. This surge is attributed to a decade of rising gang-related violence and subsequent tougher sentencing laws. The Swedish Prison and Probation Service projects the inmate population could reach 30,000 within the next decade, necessitating urgent capacity solutions.

Estonia, conversely, has surplus prison capacity, with Tartu Prison alone having hundreds of vacant spaces. The five-year agreement, which awaits parliamentary approval in both nations, is set to commence in July 2026. Under the terms, only low-risk male inmates over 18 will be transferred, and they will be returned to Sweden at least one month before their release date, ensuring no foreign prisoners are released on Estonian soil. This intergovernmental cooperation mirrors similar arrangements seen in Europe, such as Norway's previous lease of prison spaces in the Netherlands and Denmark's agreement with Kosovo.