Having bank accounts in non-EU countries could be about to get more complicated for Sweden residents, due to the EU's Capital Requirements Directive, Article 21(c).
It's not uncommon for foreigners living in Sweden to keep one or more bank accounts in their country of origin – often these were opened when the person was still living there, and maintained after they moved to Sweden.
They can be vital to keep up with financial affairs such as taxes in the home country, and are especially important for pensioners as some pensions cannot be paid into a bank account in another country.
But some changes are on the horizon, due to the implementation of the EU directive.
What does the directive say?
The Capital Requirements Directive (CRD6) will require non-EU banks, financial institutions and other entities who provide core banking services in an EU country to establish an authorised local branch.
Core banking services are defined as taking deposits, providing loans or credit guarantees. Find the full text of the law here.
What does it mean for Sweden residents who have accounts in a non-EU country?
If you have an account with a bank in a non-EU country, they will have to either set up a local branch in Sweden, or enter into an agreement with a local subsidiary in order to continue providing services to Sweden-based clients, unless one of the exemptions applies (more on those below).
In practical terms, this means that Sweden residents who have an account with a bank outside the EU may soon be receiving letters asking them to provide an address in the country where the bank account is based.
Other banks may inform their EU-based clients that they cannot keep their accounts open.
How is this different to Sweden's current law?
The new directive is a standardising law – aimed at ensuring that all EU countries have the same rules when it comes to dealing with non-EU banks or financial organisations.
Current Swedish law means that non-EU banks and credit companies who only provide certain individual banking services don't have to set up a local branch (although if they want to operate as a broader banking service in Sweden they are already obliged to establish a local presence).
The new EU directive seems to have prompted many banks and financial institutions outside Sweden and the rest of Europe to update or revise their policies when it comes to dealing with customers in the EU.
When does it come into force?
The directive was passed in July 2024, and EU member states were then given an implementation period.
Countries were required to add the directive into their national laws by January 10th, 2026, with a start date of January 11th 2027 at the latest.
Sweden has opted for the January 11th 2027 start date.
The new rules will apply only to agreements signed after July 10th 2026.
We have heard from some readers that their banks have started to notify customers about the changes, but it's not yet clear how many will be affected, so we would be extremely interested in hearing from more of you. Please comment below or reach out to our editorial team at news@thelocal.se.
Are there exemptions?
Yes, there are two important exemptions to the new directive.
The first is "reverse solicitation" – the restrictions will not apply where an EU client has approached the non-EU bank/lender at their "own exclusive initiative".
The second is that, as mentioned above, there's a grandfathering clause which means that a contract signed before July 11th should not be covered by the new legislation.
That should give non-EU banks ample cover to continue dealing with EU-based clients – however, it may be that some banks either take a conservative approach to interpreting the legislation, or simply decide that it is too complicated to continue to deal with clients in the EU.
There are other exemptions around inter-group contracts and dealings between banks that are aimed largely at businesses, rather than individuals.
What alternatives?
For those whose banks are threatening to close their accounts, there are two options: find a bank that has branches in both your home country and in Sweden, or internet banks.
Internet banks offer a practical option for people dealing with financial matters in more than one country – banks like Wise or Revolut offer accounts in multiple currencies – and, crucially, provide both an EU account number and an account number in the UK/US/non-EU country.
Having an EU and a non-EU account number satisfies authorities/pension providers who require a local bank account. The disadvantage to these accounts, however, is that they do not provide all of the same services as a bank, and they don't have a bricks-and-mortar presence for face-to-face appointments.
This is a Swedified version of an article originally published by our sister site The Local France.