I forgot to mention that the best account to open in Sweden is an ISK account (big thanks to everyone who pointed that out in the comments). An ISK account (Investeringssparkonto) in Sweden is a great way to invest because it makes things super easy with a flat tax rate based on your account's value, so you don't have to worry about capital gains tax on each trade. It handles tax reporting automatically, so there's no hassle. Plus, you can invest in a variety of things like stocks, bonds, and ETFs without any lock-in period. It's a flexible and user-friendly option, making it better than traditional investment accounts. More details provided by @Loff3t (thank you 🙂): “If you open an ISK/Kapitalförsäkring in Avanza/nordnet or any other place its as of now about 0.88% tax, íts fixed and related to interest rates. So you pay 8800sek tax if port is 1.000.000sek value per year, no matter of the gains. Any other type of account is 30% tax on profit.”
Good video and that you added info about investment accounts (ISK). ISK might be even more advantegous as the parliament majority have opted to introduce a 300000 SEK tax free limit on ISKs, which means if it comes to pass that you can have upto the equivalent of ca 30 thousand USD tax free on your ISKs. As always, especially in high tax countries like Sweden you need to know how the tax system works. In Nordnet but not in Avanza you can automatically invest montlhly in upto 4 ETFs of your choosing without "courtage". ISKs and KFs (capital insurance) are good investing vehicles for those, who like me, like passive income streams in the form of dividends as dividends in ISKs and KFs are not taxed as they are in "normal" accounts (depå in Swedish) with 30%. I have both a KF and ISK in Nordnet and ISK in Avanza. The Nordnet KF refunds foreign tax (normnally 15%)on dividends from foreign investments. In ISKs it is different as you have to request for tax reduction of your foreign tax in your tax form. Therefore it could be better to hold foreign investments in a KF. Note that in KF you do not own the investments (stocks, funds, ETFs etc) it is the brokerage firm that owns them even though you buy and sell in the KF. It is as the name suggests an insurance, if you die, the capital, usually 101% of the amount will go to the benificiary you have stated. I will also add that there are some contenders to the popular platforms Avanza and Nordnet. Like savr.se, levler.se, aktieinvest.se and there is also the European brokerage firm DeGiro present in Sweden, degiro.se. DeGiro could be interesting if you are European and perhaps not planning to stay permanently. But beware if you have an ISK and moves from Sweden, then your ISK will convert into a "depå" as only Swedish residents can have ISKs. If you want to diversify your investments further into other asset classes there are some crowdfunding platforms like kameo.se and tessin.se. There you can invest in loans to real estate projects. Finally, if you are interested in physical precious metals there are a plethora of European websites, for instance tavex.se which I believe is domiciled in Estonia. They also have stores in Stockholm. Happy investing!
I started to fondspara for my children (3 boys) when they were born. I put away only sek 200/month each and by their 18th birthday they had each sek 100 000,
No mention of ISK which I think is the biggest pro in Sweden. Also a little heads up. IMF just declared SEK to be the worlds most undervalued currency by -17%. If SEK manage to get stronger then you will lose quite a bit of value on just currency conversion if you invest heavily in global companies. US and especially the tech sector have been performing very well by but there are several top investors who think it will be a good idea to put more focus in the Swedish market the coming 1-2 years. I will be doing that my self.
I was also missing a comparison between the different types of accounts you can use to handle your stocks or funds in Sweden, as the taxation may vary depending on what type of account you actually use. (ISK = Investerarsparkonto, AK = Aktiekapitalkonto and finally KF = Kapitalförsäkring.) These types of accounts are available on all banks / platforms. Also, if you receive dividends from abroad, a "Kapitalförsäkring" (Capital Insurance) is preferrable in most cases. But you can actually have as many and different types of stock/fund accounts as you want.
Hey Uli, this is an interesting video. I have no idea how investing works but I`m interested in to invest. I wonder whether you could recommend any videos for beginners.. Also can I ask how it works if you want to take money out from your investment? And is there any risk that you can lose all your money?
I recommend this RU-vid channel: www.youtube.com/@DamienTalksMoney/videos and these books "The Psychology of Money" and "Unshakeable: Your Guide to Financial Freedom Your Guide to Financial Freedom". I personally only invest in funds because they're diverse and therefore the risk is lower (but there is always a risk). Also look up S&P500. Good luck!
If you open an ISK/Kapitalförsäkring in Avanza/nordnet or any other place its as of now about 0.88% tax, íts fixed and related to interest rates. So you pay 8800sek tax if port is 1.000.000sek value per year, no matter of the gains. Any other type of account is 30% tax on profit.
Didn’t know about the language. That is a weakness of Avanza to be fair. I prefer Avanza but I am swedish. Both these platforms are very good in my opinion. They are independent and does the same thing. The main thing is these are way better than the platforms of, for exemple, the platforms of individual Banks who basically has a much smaller stock to choose from, are more expensive, are not independent and biased to sell their own products which often are worse. The most important thing though, is to start invest at all. Many many people does not do this. And you can do it in what manner you want and you prefer or think is fun. The best adviceI like to give befinner who don’t has a lot of knowledge and/or dont wanna spend alot of time is to use a fond robot. There are many good ones and often gives as good results as doing an extensive work oneself.
I'm eager to explore investment opportunities, but I'm uncertain about the first steps. Can you offer any guidance or introduce me to someone in your network who could provide valuable insights and support?
