Fees and Taxes
Advinans works with fully transparent pricing. Our philosophy is that each service should be priced separately. We as an intermediary and fund platform must purchase the best services / products at the lowest possible fee for our customers. Of course, Advinans does not has its own funds. Through a clear fee model, we have a clear focus: the best for our customers. Learn more about our fees for individuals and for employers
Every day, Advinans calculates the value of the managed capital for all accounts linked to a personal identity number. If the total value is less than SEK 1 million, a fee of 0.25% per year is payable on the managed capital. On capital over SEK 1 million up to SEK 5 million, a fee of 0.2% per year is payable. On capital over SEK 5 million, a fee of 0.15% per year is payable. The basis for calculation is based on the total capital of Advinans - i.e. all portfolios and including any pension insurance managed by Advinans.
Advinans automatically charges its management fees once per quarter (1/4 per quarter of the annual fee). When the fee is charged, we sell shares in each investment fund based on your distribution at that time. The investment fund companies charge their fees - the majority on a quarterly basis, others on a monthly basis. Any discounts Advinans receives from the investment fund companies are automatically reinvested back to you.
Advinans wants to reward customers who accumulate all their savings with us. At the same time, we think it is reasonable that customers with a greater amount of capital receive a discount to reflect our cost structure.
For private individuals, the service is terminated automatically after 12 months. If after that time you want some new advice, you can actively go in and pay for the service again - nice and easy. However, we are convinced that it is good business for our customers to review their retirement savings via Advinans’ pension advisory service once a year (to revise the risk and take advantage of any new and cheaper investment funds). For employees of employers that offer Advinans’ digital pension advisory service, the service is available as long as the employee is employed and the employer subscribes to the service.
The simple answer is yes, if you expect a long-term average return that exceeds 2-3% per year. Advinans’ assessment is that our portfolios should over time generate a higher return than that, which is why we have chosen to currently only offer ISK. The difference between the two account types is in the yield tax and the fact that for a share/investment fund account you need to spend more time on your tax return. For a share/investment fund account you pay capital gains tax when you sell as well as for dividends, while an ISK instead has an annual flat-rate tax on the total capital. Advinans’ perspective is that ISK is currently more favourable for the simple reason that the government borrowing rate – on which the size of the flat-rate tax is based – is very low. ISK’s favourable terms may change in the future. Advinans will continuously analyse the situation for our customers to provide accurate advice and may – for example in the event of changed tax rates – recommend another account form.
An Investment Savings Account (ISK) has just a flat-rate tax which means an annual percentage tax on the value of the account instead of capital gains tax on the sale of securities. You do not need to calculate the tax on your ISK yourself, but if you want to know we will describe how to do it below. The simple answer is that Advinans reports a standard income to the Swedish Tax Agency every year on your behalf. The standard income then automatically shows up in your tax return and is taxed at 30%, alternatively is offset within the income category capital. Simply and securely. The standard income is the same as the capital base multiplied by the government borrowing rate of 30 November in the previous year + 1%. The capital base is calculated as one quarter of the total of: The value of the assets in your ISK at the beginning of each quarter Deposits during the year Transfers of securities to your ISK during the year NB: It is common to call the ISK taxation the product of (government borrowing rate + 1%) * 30%, i.e. the flat-rate tax to be multiplied by the capital base in order to give the total tax. This tax is for the year 2021 0.375%. A mathematical example: Quarter 1: Value SEK 0. You have SEK 0 in your investment savings account since you only opened your account in May. Quarter 2: Value SEK 40,000. Since you deposited SEK 40,000 in your ISK. Quarter 3: Value SEK 45,000. You have not made any deposits but the value of your securities has increased by SEK 5,000. Quarter 4: Value SEK 60,000. You have deposited an additional SEK 10,000 while the capital has increased by a further SEK 5,000. This base allows us to calculate the tax for the investment savings account: Sum up your deposits and all values. There is a total of SEK 50,000 in deposits + SEK 145,000 in value, a total amount of SEK 195,000. Divide 195,000 by all quarters (195,000/4) and we get the amount SEK 48,750. Multiply the capital base SEK 48,750 by 1.25% (2020) to get the standard income ~ SEK 609. Multiply the standard income SEK 609 by the tax rate 30%. The final tax amount is SEK 182.  There is a lower limit for the standard income of 1.25% of the capital base. If the government borrowing rate on 30 November the previous year is + 1% lower than 1.25%, the standard income is automatically 1.25% of the capital base.
For pension insurance/occupational pension, an annual yield tax is payable. If your pensions are in the process of being paid, they are also taxed for income. You do not need to do anything yourself but instead the insurance company where your pension is invested will report the yield tax paid any any income tax to the Swedish Tax Agency. The yield tax is a flat-rate tax that is deducted in advance based on the value of the pension capital on 1 January each year. The tax calculation is made by multiplying the value as of 1 January by the average government borrowing rate of the previous year. This product is called tax base* which is then multiplied by 15%. For the year 2020 the tax rate will be 0.075% (0.50% * 15%) *The average government interest rate was 0.03%* in the year 2019 but the tax base must, as of 2017, be at least 0.5% of the pension capital. A mathematical example: You have SEK 100,000 in entry value 2020 Yield tax = SEK 100,000 * 0.50% * 15% = SEK 75 For income tax we refer to the Swedish Tax Agency's website for information about the regulations and levels applicable at any given time. It is common that the cut-off limit for marginal tax is higher for pensioners as the basic deduction is larger.
First of all, Advinans, unlike other companies in Sweden, pays back any discounts from the investment fund companies to all customers. This means that the same investment fund is up to 75% cheaper with us compared to other operators. The work of Advinans is also based on the philosophy that we only partner with one supplier per type of investment fund. Our suppliers are thus given access to an attractive customer base in a cost-effective way and they can therefore offer competitive fees.