Have you been thinking about investing in the stock market, but haven’t had a clue on how you should do that? Then you should give attention to the so-called Equity savings account. Here is why: 

Before 2020 you had to pay taxes for all capital income from equity investments right away. For example if you received dividends or sold shares with profit you would declare this income in the annual return and pay taxes.

Due to the immediate tax liability your net amount available for re-investment used to be considerably less and this weakened the compounding effect. For this reason many taxpayers kept equities longer than planned to postpone taxation.

Since the beginning of 2020 there is a way to avoid this dilemma. Now you have the option to re-invest your profit without paying taxes immediately:

All you need is an Equity savings account. 

equity saving account

How exactly does the Equity savings account work? 


  • You can only have one such account at the time
  • Since 2024 you can pay a maximum amount of 100 000 EUR into the account (before 2024: 50 000 EUR)
  • There can be both money and shares on the account at the same time
  • You can only trade shares, not funds like ETF’s, etc.
  • You can buy and sell shares within the Equity savings account without paying taxes on income. Also dividends are tax-free as long as they stay within the account.
  • You pay capital income taxes only once you withdraw money from the account, so you choose the moment of taxation. 

Where can I open such an account?


As of early March 2021 Nordnet, Danske Bank, Mandatum, Ålandsbanken, and Nordea offer Equity savings accounts to their customers. Besides them OP Group announced to open the product to their customers as well.
On first sight only Nordea seems to offer website information in English on the Equity savings account.

Michael Lutzeier