As part of the budget, several tax reductions have been proposed to mitigate inflation and increase the purchasing power of Swedish households. One significant proposal is a yield tax exemption for individuals on the first SEK 150,000 held in a life insurance policy or an ISK account (Individual Savings Account). This exemption will come into effect on 1 January 2025 and will increase to SEK 300,000 by 2026.
While the exemption may have limited impact on the savings of High Net Worth Individuals (HNWIs), it signals strong government support for savings and investments through life insurance and ISK accounts. These instruments remain key pillars in the Swedish Government’s financial policy agenda.
Additionally, with decreasing market interest rates anticipated to lower the overall yield tax in 2025, we at Lombard International Assurance remain confident that our robust Swedish life insurance solutions continue to be among the most attractive asset management vehicles for both wealthy individuals and companies in Sweden. Life insurance remains a tax-efficient, long-term solution for protecting and growing your client’s wealth today and for future generations.
Should you have any questions or wish to discuss the potential impact of these changes, please do not hesitate to get in touch with our Swedish team.