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Essential guide: How to set up your first bank account in Sweden

If you're expecting to be in Sweden long-term, you're going to want to set up a bank account, but as in many countries, this can be problematic if you've only just arrived. Here are the key things you need to know.

Published: 7 May 2019 13:56 CEST
Updated: 25 February 2023 08:51 CET
Essential guide: How to set up your first bank account in Sweden
Make sure you know your rights before you open a bank account in Sweden. File photo: Fredrik Sandberg/TT
Choosing a bank

There are four major banks in Sweden: Handelsbanken, Nordea, SEB, and Swedbank, as well as many smaller banks, including Bank Norwegian, Ica Bank, Forex Bank and many others.

It’s up to you which one you choose, so it’s worth looking into the account fees offered by the different banks (for example, some offer different packages for students or young people) as well as the services offered (branch availability in your area, financial planning advice, credit cards, business accounts, and so on). Factors which might be particularly important to international customers are whether the bank includes travel insurance, and withdrawal fees abroad.

Visiting a branch

Going into a branch of your chosen bank in person is usually the simplest way to get an account set up. Even in cities, Swedish banks often have limited opening hours, between 10am and 3pm or 4pm, and will be busier during lunchtime, so if possible it’s usually best to go at a different time.

Check the bank’s website to find out which documents you need to take with you, and it’s not a bad idea to take all the relevant documents you have, just in case.

At a minimum, that includes proof of your identity (a personbevis from the Swedish Tax Agency, or a passport from your country of origin), proof of employment (arbetsgivarintyg) or proof of studies (such as an admissions letter), proof of residence (if you’re an EU citizen, your national passport counts, but non-EU citizens will need a residence permit) and proof of your address in Sweden (such as a rental contract – it’s OK if this is only temporary). 

At the bank, you will be asked why you need an account (to pay rent, pay bills, receive your salary etc). The bank does have the right to deny you an account, but must have a valid reason. This could be if they cannot confirm your identity, or if they believe you have inadequate reasons for opening a Swedish bank account.

Most banks will have staff who are fluent in English, but if you cannot communicate comfortably in either Swedish or English, you could check if your municipality can help you find an interpreter.

Do I need a personnummer?

This is a trickier question to answer than you might think. The ten-digit identity code is crucial to participation in many parts of Swedish society, but it’s only available to some categories of expat (for example, job-seekers can usually get temporary residency but no personnummer) and even if you’re eligible, it can take several weeks before you’re issued with it.

It is possible to get a bank account without a personnummer, but you still need to prove you have right of residence in Sweden and that you are employed or a student. EU citizens have right of residence automatically and Swedish banks are legally obliged to offer EU residents a basic payment account, but non-EU citizens will need to show their residence permit, coordination number or LMA card (for asylum seekers).

Many internationals report having problems opening a bank account without a personnummer, so you might need to contact the bank’s head office directly before going into a branch to ensure you get the correct information. Under Swedish law (lag (1995:1571) om insättningsgaranti 11§b), most Swedish banks are obligated to let you open a bank account unless the reasons outlined above apply. If you encounter problems, it could be worth asking to speak to a senior member of staff and politely outline your rights.

Without a personnummer, you can still only get a limited service at most banks. This might mean you won’t get access to online banking, for example, so you may need to go into bank branches to carry out money transfers. If that’s the case, remember to bring your passport each time, and once you get a personnummer and Swedish ID card, return to the branch to upgrade your account.

What fees should I expect?

You should check with the individual bank which fees you’ll be subject to as a customer, either by looking online or by asking in branch for someone to assist you.

Most Swedish banks don’t charge an ATM withdrawal fee within Sweden, but it is common to be charged either a monthly or annual fee for access to online banking, while rates and fees for international money transfers and cash withdrawals overseas vary.

BankID

Once you have a personnummer, this service is a huge advantage in Sweden.

BankID is an online identification system that allows you to log in securely to banking and other services using your phone. This means you can check your banking app, use payment transfer app Swish (more on that later), and confirm your identity with your doctor, library, ticketing companies, or in many other situations allowing you to sign documents online.

The easiest way to get BankID is to go into your local bank branch once your account is linked to your personnummer, and ask for help with setting up the mobile app.

Swish

Swish is well worth having if you’re in Sweden long-term. It’s an app similar to Venmo in the US which allows you to instantly transfer money to someone using their phone number or a QR code alone. The advantages over bank transfers are that it’s quicker (you just scan their QR code or type in their phone number) and it’s simpler when dealing with small amounts in an increasingly cash-free country.

You’ll use it when splitting bills with friends, at flea markets (loppis) and food trucks, and it’s an alternative method of payment in many shops.

In order to have Swish, you’ll need to have set up online banking and BankID (meaning you’ll need a personnummer), and then download the Swish app and link it to your account. Swish offers step-by-step instructions in English on its website.

Member comments

  1. Even after you got the personnummer this time banks start to ask “id card”, they say without an id card (the one that you obtain from Skatteverket, not your passport) it will be a limited account and it will take up to 3 weeks to open your bank account (This is for non-EU, I don’t know if that applies for EU citizens) They say that it takes that long because they have to verify your passport with authorities. I’ve been told that by Handelsbanken and SEB, didn’t try the others.

    And these days the earliest booking date for ID card application (Malmo) is around ~2 weeks. Of course, it takes another 2 weeks until you get the Id card.

    So in total, (3-6 weeks for Personnumer) + (2 weeks until id card application) + (2 weeks until receiving id card) = 7 – 10 weeks until you can open a proper bank account after you arrive to Sweden 🙂

    Maybe you can shorten that time by applying without a personnumer and book a ID-card application time before you receive your personnumer (Just checked now and the earliest possible time is 20 days later)

    But I didn’t know all of these before I’ve arrived. I haven’t tried opening a bank account without a personnummer either (I thought it wouldn’t be possible if you think that they don’t allow you to register a gym without it)

  2. Had the same issue a bank-bank. As a EU citizen with the long term job contract and personnumber I thought opening bank account should be straightforward. It turns out all banks require ID card which makes it much more complicated. It had been almost 2 months since my arrival before I will get my first debit card. (thankfully I had enough savings from my bank in previous country otherwise I dont know how I would survive)

    Was really annoyed that my HR didn’t informed me about it and said I only need personnumber (it might be recent change).

    Also consider that you might need at least a week to receive your debit card, and make sure your name is on the door as delivery wont be completed otherwise and you will need to apply for the new card and wait another week (happened to me).

    I was kinda disappointed that all the bank stuff took so much time, given that in Sweden cash is becoming useless so you cant depend on your euros. Why don’t they have a easier option for bank account for new arrivals even with small transaction limits?

    In general I would say I am quite disappointed with the administration here, both the government one and the one in the banks and corporate HR. My stereotypes about hi-tech, transparent and efficient Nordic society are kinda ruined.

  3. As a retired person living part time in Sweden (3 month there 3 months away) it is impossible to get a personnummer or a bank account or to use Swish. the only way around it for me was to use Transferwise and get a debit card from them that way at least i have a pin for the card and dont have to show ID every time I use my credit card from my non EU country. If anyone knows a better way for retirees let me know!

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EXPLAINED: What is a Swedish ISK account?

Sweden’s government has proposed scrapping tax on ISK accounts with a balance of 300,000 kronor or less - but what are these accounts and how do they work?

Published: 15 April 2024 15:33 CEST
Updated: 20 April 2024 12:50 CEST
EXPLAINED: What is a Swedish ISK account?

What is an ISK?

ISKs, literally ‘investment savings accounts’ were introduced in 2012 as a way for people in Sweden to easily invest in shares and funds. An estimated 3.5 million people in Sweden have an ISK, with 75 percent of these accounts having a balance of 300,000 kronor or less.

How are they currently taxed?

They’re not subject to capital gains tax, but they are instead taxed at a fixed rate – known as schablonsskatt – an annual rate paid on the entire value of the sum held.

This differs from traditional AFs, where AF stands for aktie- och fondkonto or ‘share and fund account’, where any profits or losses on the sale of shares throughout the year must be declared individually in your yearly tax declaration.

If you have an ISK, you pay tax of 1.086 percent on your savings under current rules, which – to put it simply – means if you had 100,000 kronor invested you’d have a yearly ISK tax bill of 1,086 kronor, which you would pay whether your portfolio made a profit or not. Any figures needed for tax purposes are automatically added to your tax declaration by your bank, so there’s no need to do this yourself.

There’s a third type of investing savings account – a kapitalförsäkring or KF, which is an insurance product where shares, funds and other savings are held in your name by a bank or insurance company. A KF differs slightly from an ISK, but they are subject to the same amount of tax (although you might need to pay tax on a KF each quarter rather than each year). 

As a general rule, it makes financial sense to invest through an ISK or KF rather than another type of investment-based savings account if your yearly returns exceed the government loan rate – statslåneräntan – plus one percentage point. The government loan rate was raised to 2.62 percent at the end of 2023, meaning you should aim for your ISK or KF to have an average return of at least 3.62 percent.

In an AF, you pay 30 percent tax on any profit you make through sold shares in a tax year. If you make a loss, you pay nothing at all.

How do I open one?

Most consumer banks in Sweden, like Swedbank, SEB and Handelsbanken, offer ISKs and KFs, as well as specialist stockbrokers like Avanza or Nordnet, which are often significantly cheaper. 

It’s somewhat less convenient to have your savings in a separate place to your bank account, but this can also be a good thing if you’re the kind of person who is tempted to sell your shares or funds at the slightest sign of a downturn.

It’s relatively easy to set up an automatic investment each month from your salary account to an ISK, even if these are in different banks.

You can often open an ISK in minutes via mobile banking on your phone, although it’s a good idea to do your research first and compare fees between providers before you open one – small differences in fees can make a huge difference if you’ll be saving over an entire lifetime.

Having said that, it’s a good idea to be aware of specific rules in your home country, especially if you are still eligible to pay tax there.

In the US, for example, ISKs are very difficult to report to tax authorities, and you may be penalised for owning mutual funds over a certain amount – which is common both in ISKs and KFs.

How would the new proposal change things?

Under a new proposal, which has been co-authored by the government and the Sweden Democrats, tax on ISKs and KFs would be scrapped for any accounts where savings are less than 300,000 kronor. Currently, an ISK with 300,000 kronor saved would cost 3,258 kronor in tax in a calendar year, so it’s a sizeable saving for those with a balance above this amount.

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