With its robust regulatory framework, political stability, and access to EU markets, Sweden offers an ideal platform for launching an investment fund targeting the broader Nordic region. Whether your focus is on private equity, venture capital, real estate, infrastructure, or listed equities, a svensk investeringsfond (Swedish investment fund) provides a flexible and credible structure for both local and international investors.
Why Choose Sweden as Your Fund Jurisdiction?
Sweden stands out for its investor-friendly environment and high levels of transparency. Key advantages include:
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EU passporting via AIFMD (Directive 2011/61/EU) or UCITS (Directive 2009/65/EC)
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No withholding tax on capital gains or interest (SFS 1990:661, Chapter 5a §2 for interest payments)
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Strong governance and supervisory standards via Finansinspektionen (The Swedish Financial Supervisory Authority)
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Efficient administration and banking systems
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Access to Nordic markets: Sweden, Denmark, Finland, Norway, and Iceland
Setting up your fund in Sweden enhances credibility with Nordic LPs, family offices, and institutional investors.
Legal Structures for Swedish Investment Funds
There are two primary categories of funds under Swedish law:
1. Värdepappersfonder (UCITS-fonder)
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Governed by the Swedish Mutual Funds Act (Lag (2004:46) om investeringsfonder)
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Must comply with the UCITS Directive 2009/65/EC
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Suitable for liquid assets such as equities, bonds, and money market instruments
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May be marketed to retail investors across the EU
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Supervised and authorized by Finansinspektionen
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2. Specialfonder (AIF-fonder)
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Governed by the Swedish Alternative Investment Fund Managers Act (Lag (2013:561) om förvaltare av alternativa investeringsfonder)
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Implements AIFMD Directive 2011/61/EU
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Flexible investment strategy (private equity, real estate, hedge funds, etc.)
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Primarily for qualified/professional investors
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Lighter restrictions compared to UCITS
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Swedish Fund Vehicles
You can choose among different legal entities for your fund structure:
Fondbolag (Management Company) + Contractual Fund
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Standard structure under the Swedish Mutual Funds Act (2004:46) and AIFM Act (2013:561)
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The fund has no legal personality; the fondbolag operates and manages assets
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Requires a licensed förvaringsinstitut (custodian/depositary) under Chapter 9 of the 2004:46 Act
Kommanditbolag (KB) – Limited Partnership
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Governed by the Swedish Partnerships and Non-registered Partnerships Act (Lag (1980:1102) om handelsbolag och enkla bolag)
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Tax-transparent and ideal for closed-ended funds like private equity
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Fund rules set in a kommanditavtal (limited partnership agreement)
Aktiebolag (AB) – Limited Liability Company
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Regulated under the Swedish Companies Act (Aktiebolagslagen 2005:551)
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Aktiebolag (AB) is commonly used for investment companies with separate legal personality
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May be structured as internally managed AIFs
Registration and Supervision of your Swedish investment fund
All fund operators must either register with or obtain authorization from Finansinspektionen, depending on size and investor base:
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UCITS-fonder and large AIF-förvaltare (AIFMs) require full authorization
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Smaller fund managers (below AIFMD thresholds: €100M with leverage or €500M without) may register under the “registrerad AIF-förvaltare” regime (AIFM Act, Chapter 2, Section 3)
Requirements include:
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Fondbestämmelser (fund rules) and full business plan
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Internal risk and compliance policies per AIFMD Level II Regulation (231/2013)
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Appointment of a licensed förvaringsinstitut under Chapter 9 of the 2004:46 Act
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Ongoing supervision under Finansinspektionen’s rulebook (FI:s föreskrifter och allmänna råd)
Taxation of Swedish Funds
Sweden is generally tax-neutral for fund vehicles:
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Värdepappersfonder and Specialfonder are exempt from income tax (Swedish Income Tax Act (Inkomstskattelag 1999:1229), Chapter 5, Section 2a)
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Distributions are taxed at the investor level
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No withholding tax on capital gains or interest to foreign investors (except for dividends in some cases – see Inkomstskattelag 1999:1229, Chapter 6)
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Kommanditbolag (KB): Tax transparent under Chapter 5 of the Income Tax Act
Sweden also maintains over 80 bilateral double taxation treaties, including with Denmark, Finland, Norway, and Iceland.
Investing in the Nordic Region
A Swedish-based fund benefits from close cultural, legal, and financial ties with the rest of the Nordic region. Examples include:
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Denmark: Opportunities in energy transition and logistics and all types of real estates
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Norway: Private equity in aquaculture and shipping and all types of real estates (offices, other commercial buildings, hotels, data centers, residential…)
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Finland: Growth equity and ESG-aligned technology and all types of real estates
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Iceland: Hospitality and renewable energy and all types of real estates
These jurisdictions are well-connected via Nordic Investment Bank (NIB) and cross-border public-private partnerships.
Popular Strategies for Nordic Investment Funds
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Private Equity and Venture Capital Funds
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Typically structured as KBs or Specialfonder
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Compliant with SFDR (Regulation (EU) 2019/2088) for ESG integration
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Nordic Real Estate Funds
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Commonly use Swedish AIF structures with tax-transparent vehicles
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Focus on residential, commercial, and logistics assets
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Listed Equity Funds
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UCITS or Specialfonder strategies with ESG or sector focus
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Infrastructure and ESG-aligned Funds
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Sweden is an early adopter of EU Taxonomy (Regulation (EU) 2020/852)
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Strong alignment with Nordic green transition goals
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ESG and Sustainable Finance Leadership
Swedish funds actively integrate miljömässiga, sociala och styrningsmässiga faktorer (ESG) and are subject to:
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SFDR (EU Regulation 2019/2088)
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EU Taxonomy (EU Regulation 2020/852)
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National implementation via Finansinspektionen regulations and guidance
Sweden’s domestic institutional investors increasingly favor Article 8 and Article 9 funds, accelerating demand for ESG-compliant strategies.
Key Service Providers in Sweden
Your fund launch will require support from:
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Fondbolag or AIF-förvaltare (licensed managers)
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Förvaringsinstitut (licensed custodians – e.g., SEB, Swedbank, Danske Bank)
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Revisorer (licensed auditors under Revisorslag 2001:883)
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Juridiska rådgivare (legal counsel)
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Administratörer (NAV, investor relations, AML compliance)
Damalion offers tailored introductions to best-in-class Swedish fund service providers.
Launching a svensk investeringsfond provides access to Nordic capital, institutional credibility, and operational efficiency under a stable EU framework. With the right structure—be it a fondbolag, kommanditbolag, or aktiebolag—your fund can benefit from tax neutrality, ESG integration, and seamless access to Sweden and the broader Nordic region.
Damalion supports entrepreneurs, family offices, and international sponsors in setting up funds under Swedish and EU law.
Contact your Damalion expert to launch your Swedish fund and tap into the full potential of Nordic investment opportunities.
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