Tax on ISK

An Investeringssparkonto (ISK) account is a form of savings account where you can save in, for example, shares and funds. You do not pay any tax on the profits you make. Instead, you pay an annual tax based on the total value of your assets and deposits, regardless of whether you make a profit or a loss. You do not have to declare the profits or losses you make on your ISK. The tax calculator is available on the Swedish Tax Authority website. Please find it here. 

The flat rate income affects your annual tax

• The standard income is based on the total value of your assets and is the basis for how much tax you will pay on your investment savings account each year. The standard income is stated in the control statement that the investment company (Interactive Brokers or your bank, for example) provides and is included in your tax return. The tax you will pay is 30 percent of the standard income.
• In other words, you do not pay tax on profits, dividends, interest or other returns that you receive from the assets you have in the account. You can also withdraw money from the account without paying tax on the amount withdrawn.

You cannot deduct losses or fees

• You are not allowed to deduct losses you make on your ISK. Fund fees, custody fees and other expenses related to the assets in your ISK are also not deductible.

How the tax is calculated in the 2025 tax return

1. First, you calculate the so-called capital base, since it is the assets in the account that are to be taxed. Add up the assets in the account at the beginning of each quarter together with the sum of all deposits in the account. Transfers between ISK accounts belonging to the same individual are not treated as new deposits in the year of transfer and are therefore excluded from the capital base calculation. Then divide the amount by four.
2. On November 30, 2024, the government loan interest rate was 1.96 percent. This means that the standard income for the income year 2025 will be 2.96 percent of the capital base (1.96 percent + 1 percentage point). 
3. The tax on capital income is 30 percent. This means that your tax will be 0.888 percent (30 percent × 2.96 percent) on the capital base that exceeds the tax-free basic level of SEK 150,000.

Example

Peter opens an ISK in the first quarter of 2025. He deposits SEK 40,000 in the first quarter and then another SEK 20,000 in the third quarter. During the year, the value of Peter's assets in the ISK increases (in addition to the deposits made).

• The standard income in Peter's tax return

The standard income is calculated by multiplying the capital base by 2.96 percent. The standard income that will appear on Peter's tax return in 2025 will be SEK 1,546.6 (SEK 52,250 × 2.96 percent).

• The standard income is taxed at 30 percent.

Since the standard income is taxed at 30 percent in the income category capital, Peter will have to pay 463.98 SEK in tax on his investment savings account (30 percent of 1,546.61 SEK). This is 0.888 percent of the capital base (0.888 percent of 52,250 SEK).

Tax-free exemption on your total savings 

• From January 1, 2025, a tax-free exemption of SEK 150,000 was introduced for the total savings you have in your ISK, endowment insurance and PEPP product.
• You will automatically receive the tax-free portion as a deduction from capital in your income tax return. You do not have to claim the deduction yourself.
• From January 1, 2026, the tax-free exemption will be increased to SEK 300,000.

Disclaimer: The material contained herein is for general information only and is not intended to serve, and should not be construed as, tax, legal or investment advice. Please consult your own advisors.