The man, who has been identified as a German national in his fifties with no fixed abode, was found dead near the train station in Hässleholm on Tuesday evening.
“Our understanding is that he has been living as homeless in Sweden, but we have no knowledge about what it was like in his home country,” police spokesperson Robert Loeffel told Swedish news agency TT.
A 17-year-old teenager was later arrested and was on Sunday formally remanded in custody on murder suspicions.
“He denies any criminal offence. I can't elaborate on what he has said,” prosecutor Malin Pålsson told TT.
The victim is understood to have been subjected to severe violence, but investigators have declined to comment on his injuries during the ongoing forensic probe.
“The investigation is still in the early stages and it is important that we continue to get information from various people without them being affected by what's written about the case,” said Pålsson.