Borgholm is one of Sweden's historical towns with a former city status (stad). The city is best known for its once-magnificent fortress which is now ruined. Borgholm is, despite its small population, for historical reasons normally still referred to as a city. Statistics Sweden, however, only counts localities with more than 10,000 inhabitants as cities.
Borgholm is the main city of Öland, but remains one of the smallest cities in Sweden. The city received its charter in 1816 and emerged as a spa-town in the shadow of the ruins of the once mighty Borgholm Castle, which burned down in 1806. So important and magnificent was this castle, that it has become the city arms, and the ruins are the best known attraction in the municipality, perhaps on the entire island of Öland. Slightly further south is Halltorps Estate, a historic royal estate linked to Borgholm Castle.
The city serves as centre of northern Öland and is one of the most popular summer resorts in Sweden.
Borgholm Castle has its modern counterpart outside Borgholm. The Swedish Royal Family has its official summer residence at Solliden Palace a couple of kilometres outside the city centre. The Crown Princess Victoria's birthday is annually celebrated on July 14 at the Borgholm Sports Field.