Sweden is a favored destination for expatriates, particularly due to its tolerant attitude and robust employment market. The expatriate community in Sweden is flourishing, whether you are beginning a new career, pursuing further education, or simply visiting.
The process of establishing a bank account should be relatively straightforward, given that 89% of the population is English-speaking. For visitors who are not Swedish or English speakers, numerous banking facilities provide interpreters. It is essential to establish a bank account in the country as soon as feasible to ensure your comfort and convenience, as the country is transitioning to a cashless society.
What documents do I need to open an account?
The process of establishing a bank account in Sweden is dependent on the duration of your stay and can be quite complex. Cash is seldom employed in Sweden, and checks are entirely obsolete. It is strongly advised that you make the bank one of your initial visits upon your arrival. Some policies may limit your access to your bank account, such as denying you access to a debit card if you intend to remain in the country for less than three months.
In order to establish an account, the following documentation is required:
- Passport
- Residence permit
- Employment contract
- Personnummer (your Swedish ID number)
- Swedish ID card
In order to obtain a personnummer, it is necessary to register with the Swedish Population Register through Skatteverket, the government tax agency. There is no online option; therefore, you must submit your application in person. Registration necessitates the
- A valid passport
- A Swedish residence permit is required unless you have a family member who is an EU/EEA citizen.
- Proof of your Swedish address
It is advisable to obtain your personal identification number prior to opening a bank account in order to facilitate the process.
Can I open an account from abroad?
Sweden has extremely stringent regulations regarding the establishment of bank accounts. Many banks do not provide the option to establish an account online as a result of anti-terrorism and anti-money laundering policies. A Mobile BankingID, an e-identification for smartphones and tablets that can be used for internet and mobile banking, including while abroad, is a service that numerous banks provide. However, it is necessary to establish a bank account in person before obtaining a Mobile Banking ID.
Can I open a bank account as a non-resident?
Despite the fact that it is somewhat more challenging, it is possible to establish a bank account as a non-resident. However, if you are not a resident of Sweden, it is crucial that you conduct thorough research and visit your preferred bank in person, armed with the necessary documentation. These consist of:
- A valid passport
- A Swedish visa
- A residence permit
- A letter of acceptance from a university with information on the duration of the studies or an employment contract
- Details of your Swedish address
It is reasonably probable that you will not have access to online banking in this manner; however, maintaining a bank account will at least facilitate your mobility throughout the country. Additionally, it is probable that you will be required to wait for three months of consistent and established income before being eligible to receive a Swedish debit card. This implies that you will be required to withdraw funds directly from the bank teller until that time.
Can I open a bank account online?
The majority of financial institutions will create an online account for you if you already have an existing bank account with them. Nevertheless, there are only a handful of alternatives to initiate the process independently that do not necessitate the involvement of a banking agent at some stage. Every bank in Sweden provides mobile services and online banking due to the country’s technological advancements.
Which Swedish bank should I choose?
Sweden boasts an array of prominent institutions from which to select. Despite the complexity of the banking system, it can actually be a blessing in disguise for expats, as it reduces the number of options available for their personal banking requirements.
Fortunately, there are numerous financial institutions that have established a positive relationship with expatriates. A relatively straightforward process for establishing a personal account should be provided with the appropriate documentation.
Nordea Bank
Nordea Bank maintains 110 ATM locations and 35 branches. They provide conventional banking services.
- Personal account
- Savings account
- Insurance (home, auto, life, health child)
- Debit and credit cards
SEB
SEB Bank provides 232 ATM locations and 21 branches. They are renowned for their exceptional mobile application, in addition to their standard banking services.
- Personal account
- Business account
- SEB Selected a bank card
- 24-hour customer service phone line
Handelsbanken
Handelsbanken operates 460 ATMs and branches. They provide conventional banking services.
- Individual current (checking) account
- Personal savings account
- Personal online & mobile banking
- Handelsbanken Debit Card
Swedbank
Swedbank has the highest number of ATM locations among the previous banks, with over 3000 ATMs and 270 cash deposit devices. Additionally, they provide services in Swedish and English, as well as interpreting services for any other languages.
- Bank account
- Debit and credit cards
- Mortgages
- Insurance (Home, Life, Health & Child)
How does the application process work?
Before opening a bank account, the initial step in the application procedure is to obtain a personal identification number. Opening a bank account is a straightforward procedure that can be completed in a single business day once all necessary documentation is in possession. In order to prevent unwarranted delays, it is advisable to commence with a lower deposit amount.
Setting up a bank account in Sweden does not necessitate an appointment; however, banks are generally open from 10:00 to 15:00. Therefore, it is important to allocate sufficient time to complete the account procedure in a single day.
Bank officers will inquire about the purpose of the account in accordance with their financial regulations, and non-EU/EEA citizens will be required to visit in person to establish the account.
What kind of banking fees can I expect?
Numerous banking fees may accumulate during international travel.
ATM fees
Banks in Sweden typically do not impose an ATM surcharge. Many banks circumvent this by imposing a yearly fee and imposing additional exchange costs on Visa Debit card purchases in foreign currencies. For instance, Skandiabanken assesses debit card holders 250 SEK annually. Nevertheless, clients are granted complimentary access to ATMs worldwide. For information on account administration fees and specific exchange rates, please contact your banking institution.
Checks
In Sweden, it is uncommon to use a check, and numerous banks no longer recognize it. Should you attempt to deposit a check in Sweden, anticipate a substantial charge and the number of days for the transaction to be processed.
Sending money overseas
It is crucial to conduct research on foreign transfer fees if you intend to transfer money from overseas on a regular basis. Although the majority of Swedish banks do not impose fees for transfers within the EU, there is typically a fee associated with sending money outside of it. For example, Nordea Bank charges a fee of 50 SEK when the transfer is initiated online and 150 SEK when it is made with a bank representative. Nevertheless, SEB imposes a fee that is substantially higher, at approximately 230 SEK for online transactions and 325 SEK for those conducted at a branch.
A bank transfer is the most expeditious and cost-effective method of receiving funds, as recommended by the majority of travelers. However, it is typically accompanied by international transfer fees from your Swedish bank, as well as fees from intermediary banks and the destination/originating bank. In conclusion, the fees for these transfers, which are typically conducted through an international transfer method known as SWIFT, are predetermined; however, they may become expensive if there is only a small quantity being transferred.
Another fee that is typically assessed on international transfers is concealed within the substandard exchange rate that a bank provides to its clients when they transfer money abroad. Use an online currency converter to effortlessly and reliably determine the current mid-market exchange rate between your home currency and SEK, thereby determining the actual value of your money. Additionally, you will be able to observe the market’s trajectory over the past 30 days and determine the amount you would receive if the actual exchange rate were implemented.