diff --git a/backend/src/main/java/se/bilhalsning/config/SecurityConfig.java b/backend/src/main/java/se/bilhalsning/config/SecurityConfig.java
new file mode 100644
index 0000000..eedaf1b
--- /dev/null
+++ b/backend/src/main/java/se/bilhalsning/config/SecurityConfig.java
@@ -0,0 +1,15 @@
+package se.bilhalsning.config;
+
+import org.springframework.context.annotation.Bean;
+import org.springframework.context.annotation.Configuration;
+import org.springframework.security.crypto.bcrypt.BCryptPasswordEncoder;
+import org.springframework.security.crypto.password.PasswordEncoder;
+
+@Configuration
+public class SecurityConfig {
+
+    @Bean
+    public PasswordEncoder passwordEncoder() {
+        return new BCryptPasswordEncoder();
+    }
+}
diff --git a/backend/src/main/java/se/bilhalsning/entity/Subscription.java b/backend/src/main/java/se/bilhalsning/entity/Subscription.java
new file mode 100644
index 0000000..1533cd8
--- /dev/null
+++ b/backend/src/main/java/se/bilhalsning/entity/Subscription.java
@@ -0,0 +1,18 @@
+package se.bilhalsning.entity;
+
+public enum Subscription {
+
+    NONE("none"),
+    BASIC("basic"),
+    PRO("pro");
+
+    private final String value;
+
+    Subscription(String value) {
+        this.value = value;
+    }
+
+    public String getValue() {
+        return value;
+    }
+}
diff --git a/backend/src/main/java/se/bilhalsning/entity/User.java b/backend/src/main/java/se/bilhalsning/entity/User.java
new file mode 100644
index 0000000..2d28672
--- /dev/null
+++ b/backend/src/main/java/se/bilhalsning/entity/User.java
@@ -0,0 +1,102 @@
+package se.bilhalsning.entity;
+
+import jakarta.persistence.Column;
+import jakarta.persistence.Entity;
+import jakarta.persistence.EnumType;
+import jakarta.persistence.Enumerated;
+import jakarta.persistence.Id;
+import jakarta.persistence.PrePersist;
+import jakarta.persistence.PreUpdate;
+import jakarta.persistence.Table;
+import java.time.Instant;
+import java.util.UUID;
+
+@Entity
+@Table(name = "users")
+public class User {
+
+    @Id
+    @Column(name = "id", columnDefinition = "uuid", nullable = false, updatable = false)
+    private UUID id;
+
+    @Column(name = "email", nullable = false, unique = true, length = 255)
+    private String email;
+
+    @Column(name = "password_hash", nullable = false, length = 255)
+    private String passwordHash;
+
+    @Enumerated(EnumType.STRING)
+    @Column(name = "subscription", nullable = false, length = 20)
+    private Subscription subscription = Subscription.NONE;
+
+    @Column(name = "created_at", nullable = false)
+    private Instant createdAt;
+
+    @Column(name = "updated_at", nullable = false)
+    private Instant updatedAt;
+
+    @PrePersist
+    void onCreate() {
+        if (this.id == null) {
+            this.id = UUID.randomUUID();
+        }
+        Instant now = Instant.now();
+        if (this.createdAt == null) {
+            this.createdAt = now;
+        }
+        this.updatedAt = now;
+    }
+
+    @PreUpdate
+    void onUpdate() {
+        this.updatedAt = Instant.now();
+    }
+
+    public UUID getId() {
+        return id;
+    }
+
+    public void setId(UUID id) {
+        this.id = id;
+    }
+
+    public String getEmail() {
+        return email;
+    }
+
+    public void setEmail(String email) {
+        this.email = email != null ? email.toLowerCase().trim() : null;
+    }
+
+    public String getPasswordHash() {
+        return passwordHash;
+    }
+
+    public void setPasswordHash(String passwordHash) {
+        this.passwordHash = passwordHash;
+    }
+
+    public Subscription getSubscription() {
+        return subscription;
+    }
+
+    public void setSubscription(Subscription subscription) {
+        this.subscription = subscription;
+    }
+
+    public Instant getCreatedAt() {
+        return createdAt;
+    }
+
+    public void setCreatedAt(Instant createdAt) {
+        this.createdAt = createdAt;
+    }
+
+    public Instant getUpdatedAt() {
+        return updatedAt;
+    }
+
+    public void setUpdatedAt(Instant updatedAt) {
+        this.updatedAt = updatedAt;
+    }
+}
diff --git a/backend/src/main/java/se/bilhalsning/exception/EmailAlreadyExistsException.java b/backend/src/main/java/se/bilhalsning/exception/EmailAlreadyExistsException.java
new file mode 100644
index 0000000..00c382d
--- /dev/null
+++ b/backend/src/main/java/se/bilhalsning/exception/EmailAlreadyExistsException.java
@@ -0,0 +1,8 @@
+package se.bilhalsning.exception;
+
+public class EmailAlreadyExistsException extends RuntimeException {
+
+    public EmailAlreadyExistsException(String email) {
+        super("Email already registered: " + email);
+    }
+}
diff --git a/backend/src/main/java/se/bilhalsning/repository/UserRepository.java b/backend/src/main/java/se/bilhalsning/repository/UserRepository.java
new file mode 100644
index 0000000..f4159fd
--- /dev/null
+++ b/backend/src/main/java/se/bilhalsning/repository/UserRepository.java
@@ -0,0 +1,15 @@
+package se.bilhalsning.repository;
+
+import java.util.Optional;
+import java.util.UUID;
+import org.springframework.data.jpa.repository.JpaRepository;
+import org.springframework.stereotype.Repository;
+import se.bilhalsning.entity.User;
+
+@Repository
+public interface UserRepository extends JpaRepository<User, UUID> {
+
+    Optional<User> findByEmail(String email);
+
+    boolean existsByEmail(String email);
+}
diff --git a/backend/src/main/java/se/bilhalsning/service/UserService.java b/backend/src/main/java/se/bilhalsning/service/UserService.java
new file mode 100644
index 0000000..bb625a8
--- /dev/null
+++ b/backend/src/main/java/se/bilhalsning/service/UserService.java
@@ -0,0 +1,32 @@
+package se.bilhalsning.service;
+
+import java.util.Optional;
+import lombok.RequiredArgsConstructor;
+import org.springframework.security.crypto.password.PasswordEncoder;
+import org.springframework.stereotype.Service;
+import se.bilhalsning.entity.User;
+import se.bilhalsning.exception.EmailAlreadyExistsException;
+import se.bilhalsning.repository.UserRepository;
+
+@Service
+@RequiredArgsConstructor
+public class UserService {
+
+    private final UserRepository userRepository;
+    private final PasswordEncoder passwordEncoder;
+
+    public Optional<User> findByEmail(String email) {
+        return userRepository.findByEmail(email.toLowerCase().trim());
+    }
+
+    public User createUser(String email, String password) {
+        String normalizedEmail = email.toLowerCase().trim();
+        if (userRepository.existsByEmail(normalizedEmail)) {
+            throw new EmailAlreadyExistsException(normalizedEmail);
+        }
+        User user = new User();
+        user.setEmail(normalizedEmail);
+        user.setPasswordHash(passwordEncoder.encode(password));
+        return userRepository.save(user);
+    }
+}
diff --git a/backend/src/main/resources/db/migration/V1__create_users_table.sql b/backend/src/main/resources/db/migration/V1__create_users_table.sql
new file mode 100644
index 0000000..c750912
--- /dev/null
+++ b/backend/src/main/resources/db/migration/V1__create_users_table.sql
@@ -0,0 +1,11 @@
+CREATE TABLE users (
+    id UUID NOT NULL,
+    email VARCHAR(255) NOT NULL,
+    password_hash VARCHAR(255) NOT NULL,
+    subscription VARCHAR(20) NOT NULL DEFAULT 'none',
+    created_at TIMESTAMP WITH TIME ZONE NOT NULL DEFAULT CURRENT_TIMESTAMP,
+    updated_at TIMESTAMP WITH TIME ZONE NOT NULL DEFAULT CURRENT_TIMESTAMP,
+    CONSTRAINT pk_users PRIMARY KEY (id),
+    CONSTRAINT uq_users_email UNIQUE (email),
+    CONSTRAINT ck_users_subscription CHECK (subscription IN ('none', 'basic', 'pro'))
+);
diff --git a/backend/src/main/resources/db/migration/V1__init_schema.sql b/backend/src/main/resources/db/migration/V1__init_schema.sql
deleted file mode 100644
index 49802bb..0000000
--- a/backend/src/main/resources/db/migration/V1__init_schema.sql
+++ /dev/null
@@ -1,2 +0,0 @@
--- Initial schema: placeholder migration
--- Core tables will be added in subsequent migrations.