The order of my posts might be all over the place, apologies for that. I’m writing as inspiration comes to me and no in any particular order.
Today I’m going to discuss a bit the different types of accounts you can open with a bank or broker in Sweden.
There are three main types of investment accounts in Sweden:
Aktie- och fondkonto (stock and fund account)
Kapitalförsäkring (capital insurance)
Investeringssparkonto (ISK) (investment savings account)
Aktie- och fondkonto
An aktie- och fondkonto is a regular investment account where you pay capital gains tax on your profits. You can invest in stocks, bonds, and other financial instruments.
Kapitalförsäkring (Great for kids savings).
A kapitalförsäkring is a type of life insurance policy that can be used for investment purposes. You can invest in a variety of assets, including stocks, bonds, and real estate. Kapitalförsäkringar are tax-efficient, but there are some restrictions on how you can withdraw your money. Note: for American investors this is likely the only account you’ll be able to open. More on investing as an American in a future post.
Investeringssparkonto (ISK) (Most popular).
An investeringssparkonto (ISK) is a special type of investment account that offers tax benefits. You can invest in stocks, bonds, and other financial instruments. Instead of taxing each event, such as a dividend or capital gain, the total market value of an ISK account is subject to an annual lump sum tax on your tax return. The tax amounts to 0,882% for 2023. Compared to 30% capital gains this is quite good, although if you’ve lost money in the year you still pay the tax.