SWEDEN Law and Practice Contributed by: Björn Wendleby, Rico Benavides, Per Josephson and Stellan Koch, Harvest Advokatbyrå
4. Legal, Regulatory or Tax Changes 4.1 Recent Developments and Proposals for Reform Regulatory Changes On 15 December 2023, the government announced that it had decided to appoint an inquiry chair to propose measures to modernise the fund regulations and thereby strengthen the competitiveness of the Swedish fund market. The issue has long been raised by the Swedish Investment Fund Association, which has pointed out that there are weaknesses in the Swedish fund regulations. The inquiry chair will analyse and propose the legislative amendments needed to adapt Swed - ish law to changes in the AIFMD and the UCITS Directive. The inquiry will also analyse and pro - pose measures to strengthen the competitive - ness of the Swedish fund market, including rules on association funds with variable share capital. The inquiry will also review the rules on redemption frequency for UCITS funds and special funds, and analyse how the resilience of Swedish funds and the protection of investors can be strengthened. The aim is to modernise fund legislation, make the Swedish fund market more competitive and resilient and adapt the legislation to EU law. The report is due by 30 April 2025. Tax Changes From 2025, a tax-free threshold will be intro - duced for the total savings that a person has in investment savings accounts (and endowment insurances), which, for the income year 2025, is SEK150,000 per person. From 2026, the tax-free threshold will be raised to SEK300,000.
It is common for lenders to require security when financing funds, such as pledges over fund assets or guarantees from parent companies. Lenders often conduct thorough due diligence to evaluate risks before extending credit. There are no common issues in relation to fund finance. 3.6 Tax Regime All Swedish UCITS and special funds are exempt from taxation and are not liable to Swedish income tax. Corporate tax was 20.4% in 2024, and for individuals, profits are normally taxed through general capital gains tax, which is 30%. There is no separate tax regime specifically for investors in retail funds. However, all financial instruments (including units in UCITS or spe - cial funds) invested through an investment sav - ings account (investeringssparkonto (ISK)) are taxed annually based on the combined value of the assets and deposits (the capital base), regardless of whether a profit or a loss is made. A standard income ( schablonintäkt ) is used to calculate the tax base, which was 3.62% of the capital base in 2024. This is then taxed at a rate of 30%, which means that the capital base for 2024 is taxed at 1,086% in total. Corporates cannot open investment savings accounts, but they can open an endowment insurance policy.
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