Opening a Bank Account & Managing Your Taxes in Sweden

Jump right in:

• How to open a bank account in Sweden?
• Top banks in Sweden
• What is the tax system like in Sweden?

How to open a bank account in Sweden?

Opening a bank account in Sweden as a non-resident is relatively simple. Like most official business in Sweden, the process is fully laid out and there’s typically nothing required other than a few documents and an in-person visit. Keep in mind that depending on your citizenship, you’ll need a personnummer.

What is a personnummer?

A personnummer, or personal number, is your Swedish tax identification number and is required to open a bank account in Sweden. Find out how to get this number in our Working in Sweden section.

If you don’t have a personnummer, you can still open a bank account under specific conditions — find out more below.

What do you need to open a bank account in Sweden?

Requirements to open a bank account as a non-resident in Sweden will vary depending on whether you’re an EU/EEA citizen or not. If you’re an EU/EEA citizen, you have a right of residence in Sweden and legally allowed to open a basic account without a personnummer.

For EU/EEA citizens, you’ll need:

• EU passport
• Proof of address (utility bill or rental contract)
• Proof of employment or school enrollment
• Swedish ID card (although not legally required, it may ease the process)

It’s always a good idea to check with the bank of your choice which documents they require as there may be additional requirements.

For non-EU/EEA citizens, you’ll need the personnummer in addition to the documents listed above for EU/EEA citizens.

Although you can open a limited or basic account without a personnummer, there aren’t many banks willing to do so and there will be restrictions on your account. Such restrictions include no debit card or online banking access until you’re able to produce a personnummer. This means you’ll have to visit the bank in person for most transactions. Luckily, Sweden is largely a non-cash-based society, so using a credit card shouldn’t be much of a hassle.

Non-EU/EEA citizens should also contact their chosen bank before opening their account. While it’s a legal obligation that everyone be allowed to open a bank account in Sweden, non-EU/EEA citizens have often faced problems when simply walking into a bank and trying to open an account on the spot. Therefore, it’s advisable to call the bank ahead of time and make sure you can open a non-resident account and that someone will be there to help you. Take the chance to verify if other documents are required by that specific bank.

What if I’m denied a bank account?

If you’re told by a bank it’s not possible to open a bank account without a personnummer, ask to speak with a manager. According to Swedish law, banks can only deny you if they cannot confirm your identity or if they believe you have insufficient reasons for opening an account (e.g., you’re not planning on remaining in Sweden for long).

If the bank denies you an account, you have the right to receive written information about where you can turn with a complaint and how you can appeal the decision.

Can I open a Swedish bank account from abroad?

If you’re planning to move to Sweden, you may be wondering if it’s possible to open a Swedish bank account online as a non-resident before arrival. Unfortunately, Sweden has strict laws regarding opening bank accounts online. Some banks offer a Mobile Banking ID, which is an e-identification that can be used for apps and mobile banking, but to register this ID you’ll need to visit a bank in-person. Therefore, it’s not possible to set up a bank account online.

What are some of the top banks in Sweden?

There are around 124 different banks currently operating in Sweden. The most prominent ones are:

• Handelsbanken
• Swedbank
• Nordea
• SEB (Skandinaviska Enskilda Banken)

If you don’t want to open a Swedish bank account, there are plenty of international banks throughout Sweden. These include Bank of America, Barclays, Citibank, and HSBC, among others.

What are the best online banks?

Sweden is a tech-friendly country, and so many Swedish banks already provide high functioning mobile apps and online platforms. Nevertheless, here are some of the top-rated online banks:

• Swedbank
• Revolut
• Nordea Bank
• SEB Bank
• Forex Bank AB

Are there any banking fees?

While most Swedish banks don’t require a minimum deposit, it’s rare to find a bank account with zero fees. Most Swedish banks don’t charge a regular ATM fee, but the majority will include a yearly maintenance fee — around 250 SEK (25 USD) — or fees for other types of services. Some online-only banks can have free accounts but they’ll place limitations on services. Be advised that checks are rare, and trying to deposit one may incur a fee.

What is the tax system like in Sweden?

The Swedish word for tax, skatt, also means treasure, which could hint at the fact that Swedish citizens generally don’t mind their exorbitantly high taxes.

The Swedish Tax Agency has more power in Sweden than most expats may be used to in their home countries. For example, when a child is born in Sweden, they are automatically issued a personnummer. When parents register their child’s name with this number, the Swedish Tax Agency has the right to deny the name. While this has only happened in extreme cases with names not in the best interest of the child (e.g., Sickboy or Dotcom), this is a power many expats may be surprised is yielded by a tax authority.

The Swedish Tax Agency is also responsible for marriage and death certificates. If you plan on remaining in Sweden long-term, the tax agency is something you’ll have to get used to.

How are taxes and the government level related?

To begin understanding how taxes work in Sweden, you need to know that the Swedish government is split into three levels:

• stat: federal level; highest level of government
• landsting: county; mid-level and similar to a state or province
• kommun: municipality; lowest level of government and basically the city in which you live

The tax you pay in Sweden will differ based on where you live. As with most countries, the closer you live to large cities, the more tax you’ll pay.

What’s the personal income tax in Sweden?

Everyone in Sweden pays kommun and region tax. Generally, kommun tax will take around 20% of your income. These taxes go towards city services such as the maintenance of roads, schools, libraries, etc. Region tax will take about 11% of your income. These taxes go towards more regional matters such as healthcare.

Only the highest earners pay the state income tax (statlig inkomstskatt). This tax is usually about 20% of one’s income, but only on the amount that makes them a high earner. For example, if you earn SEK 650,000 per year, you’ll pay municipal tax (on average 32%) on SEK 632,700. On the remaining SEK 6,900, you’ll pay state income tax, which will be SEK 1,380 (i.e., 20% of SEK 6,900).

Every year the Swedish government determines the threshold that makes someone a high earner.

What’s the social security tax?

In addition to the three government levels of taxes, employers need to pay an additional 31.42% on the employee’s income for social security tax. This contributes to the high salaries in Sweden, because it’s a tax that the employer pays, not the employee. Thus, this taxed percentage is added to an employee’s salary.

What are the taxes like for expats?

Under Swedish law, individuals can become taxpayers on three different grounds:

• Permanent resident
• Habitual abode
• A former resident who lives outside Sweden but has “essential ties” with Sweden

Normally, if you plan to stay in Sweden for more than 12 months, you’re considered permanently resident in Sweden and therefore a tax resident. A taxpayer pays the same taxes as a Swedish citizen. In this case, you’ll be taxed on the money you earn not only within the country but also abroad.

Expats who are only in the country temporarily will be taxed on what they make in Sweden only. If your stay isn’t longer than six months, you can apply for special income tax for non-residents (SINK) as a limited tax resident.

Expats in certain careers may be eligible for tax relief. These careers include highly specialized positions such as scientists and those with specialty knowledge and skills. If you think you may qualify, you’ll need to contact the Swedish Tax Committee (Forskarskattenämnden) at least three months before your arrival in Sweden.

Taxes for the self-employed in Sweden

Self-employed workers in Sweden will need to register their business with the Swedish Tax Authority by filling out an F-tax form. To calculate the amount of tax you must pay, you need to submit a preliminary tax return. Based on your income, they’ll calculate how much tax is to be paid each month.

Depending on income and in which municipality you live, your business can be taxed at a rate of 30–55%. A self-employed expat living in Sweden will be liable to pay taxes on annual income surplus (30–55%) as well as the Swedish Social Security Contributions, which are generally 28.97%. However, these contributions are deductible. Some relief is also available for low-income self-employed persons.

Are there other taxes to keep in mind?

While living in Sweden, there are several other taxes you may come across in addition to the usual income and social security tax. Keep in mind that tax brackets will vary based on your municipality.

• Capital Gains Income Tax: Generally around 30%, although the rate may vary
• Corporate Income Tax: Between 20–21%.
• Value-Added Tax (VAT): The standard rate for goods and services is 25%, although some qualify for reduced rates and some are exempt.

Does Sweden have double taxation?

If you’re a tax resident in Sweden and earn income from another country, you may be subject to double taxation. However, Sweden has tax agreements with many countries to avoid this situation. Check the tax agency websites of your respective country for more information or contact the Sweden Tax Agency by filling out the webform.

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