ISK, KF or regular account: which should you choose?
Once you’ve decided to start saving, the next question is: where should the money go? ISK, capital insurance and a regular brokerage account are taxed in completely different ways. The choice can make thousands of kronor difference over time.
The three options, briefly explained
ISK (investeringssparkonto) is the most common savings type for individuals in Sweden. You own the securities yourself. Instead of paying 30% tax on each realised gain you pay an annual flat tax on the account’s value, currently around 1% per year.
KF (kapitalförsäkring) is technically an insurance policy, not an account. You don’t own the securities directly. The tax is similar to ISK but suits people who want to give the holdings as a gift or live abroad. A regular brokerage account is taxed at 30% on all gains and dividends, advantageous only if you have losses to offset.
The differences at a glance
| Feature | ISK | KF | Brokerage |
|---|---|---|---|
| Tax on gains | None | None | 30% |
| Annual flat tax | ~1% of value | ~1% of value | No |
| You own the shares | Yes | No | Yes |
| Voting rights at AGM | Yes | No | Yes |
| Good for gifting | No | Yes | No |
| Offset losses | No | No | Yes |
The flat tax rate is set annually by the Swedish Tax Agency based on the government borrowing rate. Figure above refers to 2024.
When does ISK make sense?
ISK is the right choice for most people who want to save long-term in shares or funds. Especially if you:
- ✓Plan to let the money grow for at least 3 to 5 years
- ✓Expect positive returns (otherwise a brokerage may be better)
- ✓Want to avoid calculating each individual gain and loss
- ✓Don’t plan to give the holdings as a gift
How to open an ISK
- 1
Choose a platform
Avanza and Nordnet are the biggest in Sweden. Both are free and charge no fees on the ISK itself.
- 2
Verify your identity with BankID
Open the app or website and follow the instructions. It takes about 5 minutes.
- 3
Deposit money
Transfer to your new ISK. You can start with any amount.
- 4
Buy a broad global fund
Not sure what to buy? Start with a low-cost global fund like Avanza Global or AMF Aktiefond Global. Low fees, broad diversification.
- 5
Set up automatic buying
Most platforms let you set up automatic monthly saving. Do it straight away. It’s the easiest way to get your money growing.
Common questions about ISK
What happens if I make a loss on my ISK?
On an ISK you pay flat tax regardless of gains or losses. You can’t offset losses against other income. If you expect large losses a brokerage account may be better.
Can I have both an ISK and a brokerage account?
Yes. Many investors hold long-term savings in ISK and use a brokerage for loss-offsetting.
Do I pay tax when I withdraw money?
No. Withdrawals from an ISK are tax-free. You’ve already paid flat tax on an ongoing basis.
How much is the flat tax exactly?
For 2024 it’s approximately 1.086% of the account’s average value during the year.
Platforms we like
Open an ISK today
Both platforms are free to use and charge no account fees on ISK.
Avanza
Sweden’s largest niche savings bank. Wide range of funds and shares, no ISK fees.
Open ISKNordnet
Good alternative with monthly fund saving and no transaction fees. Popular with beginners.
Open ISKThese links are affiliate links. We earn a small commission if you use the service, at no extra cost to you. Read our policy.
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