The number of horses in Sweden has increased, from 77 300 in 1970 to 283 000 in 2003 (ca. 250%). These horses are kept on 300 000 ha, which represents 10% of total agricultural land in Sweden. Maximum recommended livestock density in Sweden is 2.5 units/ha for grazed pasture, but no limits have yet been set for outdoor keeping and feeding areas (paddocks) for horses. This study characterized the potential risk of phosphorus (P) losses from a horse paddock established on a heavy clay soil with a stocking rate of 3.75 livestock units/ha compared with nearby arable land. The horse paddock received 15 kg P/ha/yr and 75 kg N/ha/yr through horse excreta, while annual input of P and N to the adjacent arable land was 13 and 112 kg/ha, respectively. There was no significant difference in water‐soluble P (WSP) in fresh and dried soil samples between the horse paddock (mean values: 0.62 and 0.43 mg/100 g soil; n = 15) and the arable field (mean values: 0.52 and 0.37 mg/100 g soil; n = 5). In contrast, phosphorus extractable in ammonium acetate lactate (extractable P) in the topsoil of the horse paddock (mean: 15 mg/100 g soil) was significantly higher (P = 0.03; n = 15) than in the arable land, whereas total P extracted with nitric acid (total P) showed no statistically significant differences. Furthermore, there was no significant difference in lactate‐extractable iron and aluminium (extractable Fe and Al), organic carbon (C), total nitrogen (N) or phosphorus sorption index between the two parcels of land. However, the degree of P saturation in soil was significantly higher (P = 0.02; n = 15) in the horse paddock. Extractable Al and Fe were highly correlated to extractable P (P < 0.001; n = 69), the correlation being negative for Al. No relationship was found with calcium, but soil C content was found to be correlated with extractable P (P < 0.001; n = 69). Over the past 8 yr, high P concentrations (up to 1.5 mg/L), mainly in dissolved reactive form, have been recorded in drainage water from the grazed catchment. We concluded that horse grazing at high stocking rates (>2.5 livestock units/ha) may pose a risk of high P losses to nearby water bodies.