The Best Investment Strategy in 2025 for Your ASK Account: Minimize Taxes & Maximize Returns

Investing in an Aktiesparekonto (ASK) account in Denmark comes with significant tax benefits, but to fully optimize your returns, you need a well-planned investment strategy. The key is choosing EU UCITS ETFs and growth stocks that align with the tax structure of an ASK account.

By the end of this guide, you’ll learn:

• How the ASK tax system works and why it matters
• The best EU UCITS ETFs and stocks for long-term growth
• Which investments to avoid in an ASK account
• A sample investment portfolio optimized for tax efficiency.

Let’s dive in.

What Is an ASK Account and How Does It Work?

The Aktiesparekonto (ASK) is a Danish stock savings account designed to encourage individual investing. It provides a tax advantage compared to a standard investment account (AKT, aktiedepot):

• Lower tax rate: Gains and dividends are taxed at 17% per year (instead of 27%/42% in a regular investing account)
• Annual taxation on unrealized gains: Even if you don’t sell, taxes apply to gains at year-end
• Tax-efficient compounding: The lower tax rate allows your investments to grow faster over time

Since in Denmark taxation applies annually — even on unrealized gains for most financial products — the ideal strategy is to invest in long-term growth assets or stocks and ETFs with higher volatility while avoiding high-dividend stocks that increase tax drag.

Best Investment Strategy for ASK Account

At our previous blog post we presented the best investment options for an investment portfolio aiming at minimizing taxes, the main recommendation was: maximize your ASK account first.

In 2025 the ASK account limit is 166.200 kr, finally going above the 20,000 EUR threshold. Now let’s see how to best use your ASK account:

1. Prioritize Growth Over Dividends

Since dividends are taxed every year, it’s best to invest in growth stocks and accumulating ETFs (which reinvest dividends instead of paying them out).

✅ Best strategy: Focus on ETFs and stocks that appreciate in value rather than generating taxable dividend income
❌ What to avoid: High-dividend stocks and distributing ETFs, which create unnecessary tax liabilities

2. Choose Tax-Efficient EU UCITS ETFs

For an ASK account, EU UCITS ETFs are the best option because they comply with European regulations and offer strong diversification.

The best choices are accumulating ETFs that reinvest dividends, reducing taxable events.

Here are the top EU UCITS ETFs for an ASK account:

Why These ETFs?

• They are UCITS-compliant – Safe and tax-efficient for European investors
• Accumulating (Acc) versions – Avoid dividend tax drag
• Global diversification – Lower risk while benefiting from long-term growth

3. Invest in High-Growth Stocks

Some individual stocks offer strong long-term appreciation, making them perfect for an ASK account. The best stocks are tech, healthcare, and semiconductors, as they typically have low dividends and high capital growth.

Here are five top growth stocks for an ASK account:

These stocks align with an ASK-friendly strategy because they focus on capital appreciation rather than dividends.

4. Limit Trading to Reduce Taxes

Since ASK accounts are taxed annually on both realized and unrealized gains, frequent trading can create unnecessary tax liabilities, therefore is best to select your desired ETFs or stocks and avoid changing them too frequently.

When compared to Danish index funds which are under the realization principle (subject to taxes of 27%/42% only at sale), the ASK account starts to break even around year 7, therefore the longer you hold your position on ASK more benefits your will see on your tax payments.

Best strategy:
✅ Buy and hold long-term to maximize compound growth.
✅ Avoid unnecessary trades that trigger taxable gains.

What to Avoid in an ASK Account

Some investments are not suitable for an ASK account because they create tax inefficiencies:

❌ High-Dividend Stocks & ETFs – Dividends are taxed yearly, reducing long-term returns
❌ Bonds & Bond ETFs – ASK is mainly designed for stocks and ETFs, and bonds don’t benefit from the tax advantages
❌ Frequent Trading – Every gain adds to your annual taxable amount

Example Portfolio for an ASK Account

Here’s an optimized portfolio that balances risk and return while minimizing taxes:

Why This Works?

✅ Diversification: Exposure to global markets reduces risk
✅ Tax-Efficiency: Accumulating ETFs minimize taxable events
✅ High-Growth Focus: Stocks and ETFs selected for long-term capital appreciation

Final Thoughts: Optimizing Your ASK Account for Maximum Returns

An ASK account is best used for long-term investing in stocks and ETFs that appreciate in value rather than generate high dividends.

Key Takeaways:

✔ Use accumulating ETFs to reduce annual taxes on dividends
✔ Invest in growth-focused stocks (tech, AI, healthcare)
✔ Minimize trading to avoid unnecessary taxation
✔ Avoid high-dividend investments that increase your annual tax burden

By following this strategy, you’ll be able to maximize your returns while keeping taxes low, ensuring your ASK account works for you in the best possible way.

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