Sweden · Investing
Sweden’s ISK explained: how the investment savings account is taxed in 2026
Most people in Sweden invest through an investment savings account (ISK). You never pay tax on gains or dividends inside it. Instead you pay a small yearly tax on the account's value. From 2026 the first SEK 300,000 is tax-free, and the rest costs 1.065% a year.
How the ISK tax works
- Capital base. Add up the account value on the first day of each quarter (1 January, 1 April, 1 July, 1 October), add all deposits made during the year, and divide by four.
- Tax-free amount. From 2026 the first SEK 300,000 per person is tax-free, up from SEK 150,000. It covers ISK and endowment insurance (kapitalförsäkring) together.
- Standard income. The rest is multiplied by the government borrowing rate on 30 November of the year before plus one percentage point, at least 1.25%. For 2026 that is 2.55% + 1 = 3.55%.
- Tax. 30% of that standard income. In effect, 1.065% of the amount above SEK 300,000.
Examples for 2026
| Average ISK value | Taxable part | Tax for the year |
|---|---|---|
| SEK 200,000 | SEK 0 | SEK 0 |
| SEK 500,000 | SEK 200,000 | SEK 2,130 |
| SEK 1,000,000 | SEK 700,000 | SEK 7,455 |
Simplified: same value all year, no other ISK or endowment insurance.
The tax is the same whether your investments rose 20% or fell 20%. It is pre-filled in your tax return and paid with your final tax.
ISK or a normal account?
| ISK | Normal investment account | |
|---|---|---|
| Tax on gains and dividends | None | 30% when you sell or receive dividends |
| Yearly tax | 1.065% above SEK 300,000 | None |
| Losses | Cannot be deducted | Can be offset against gains |
| Admin | Nothing to report | Report every sale |
An ISK usually wins if you expect returns above about 3.5% a year, which is typical for a long-term equity fund. For cash savings with low interest a normal savings account can be better, because interest there is taxed at 30% only on what you actually earn.
Tips for expats
- You need a Swedish personal identity number to open an ISK at a bank or broker.
- If you leave Sweden, check how your new country treats an ISK. It is a Swedish tax wrapper, and other countries may tax the investments inside it normally.
- Foreign withholding tax on dividends cannot always be recovered inside an ISK.
Compare tax on savings interest →
Sources
This guide is general information based on the tax rules we could verify for 2026, not tax or financial advice. Rules change and personal situations differ, so check with the tax authority or a qualified adviser before you act. Spotted a mistake? Email contact@expatcents.com.