Before You Start
- At least one parent or legal guardian must have valid identification and proof of address in your EU country of residence.
- The child must have a birth certificate and, in most cases, a tax identification number (TIN).
- Both adult and child must be resident in an EU country (requirements and options vary by country).
- Funds available to invest (minimums vary by broker, but plan for at least €25–€50 for regular savings plans).
Time needed: 1–2 hours initial setup, plus 10 minutes/month for monitoring.
What you'll need: Internet access, smartphone or computer, identity documents, access to a European broker (e.g., Trade Republic, DEGIRO, Scalable Capital, BUX), and your child’s info.
Junior investing accounts in Europe give parents and guardians a powerful tool to help children build wealth over time. With the right approach, you can set up a tax-efficient, compounding investment portfolio that grows alongside your child. This guide walks you step-by-step through opening a junior investing account Europe, picking the right ETFs, understanding taxes and gifting rules, and avoiding common pitfalls. All examples use EUR and are tailored to the European landscape for 2026.
Step 1: Choose the Right Junior Investing Account Type
What to do: Research which type of junior account is available and most tax-advantageous in your country. The most common types are:
- Junior Custodial Accounts (e.g., Depot für Minderjährige in Germany, Compte-titres pour mineurs in France): Managed by an adult until the child reaches legal age (usually 18).
- Child ISAs (UK only): Not available in the EU, but similar tax wrappers may exist in some countries.
- Standard Brokerage Accounts in the Child’s Name: Often possible in the Netherlands, Belgium, Germany, Austria, and more.
Why it matters: Account type determines who controls the assets, tax treatment, and how/when the child gains access.
What can go wrong: Some brokers do not support under-18 accounts, or may only allow them for residents of certain countries. If you open an account in your own name and intend to gift it later, you may trigger unnecessary taxes or legal complications.
Pro Tip
Check the official help pages of your preferred broker for “junior” or “minor” accounts. For example, see Trade Republic’s junior account policy and DEGIRO’s guide to accounts for minors.
Step 2: Pick a Broker That Supports Junior Accounts
What to do: Identify brokers that allow junior accounts in your country. As of 2026, the following are popular and accessible to most Europeans:
- Trade Republic (Germany, Austria, France, Spain, Italy, Netherlands, and more; junior accounts available in select countries)
- DEGIRO (Netherlands, Germany, Austria, Belgium, France, and more)
- Scalable Capital (Germany, Austria, Italy, France, Spain, Netherlands, and more; junior accounts in Germany)
- BUX (Netherlands, Germany, Austria, France, Spain; check for junior account support)
Visit the broker’s website and look for “junior account” or “account for minors” in their FAQs or support section.
Why it matters: Not all brokers offer junior accounts, and some may require both the child and parent to be residents. Using a European broker ensures access to EUR-denominated, UCITS-compliant ETFs (see next step).
What can go wrong: Attempting to open an account in a country where the broker does not support junior accounts will result in delays or rejection. Some brokers may require in-person verification for minors.
Pro Tip
Prepare digital scans of your and your child’s identification documents before starting online registration. This will save time and reduce the chance of errors.
Step 3: Complete the Application and Fund the Account
What to do:
- Start the account application on your chosen broker’s website or app.
- Enter your personal details, then your child’s details (name, date of birth, TIN, birth certificate info).
- Upload required identification documents (passport/ID for both, proof of address, birth certificate for the child).
- Wait for account approval. This usually takes 1–3 business days, but can be longer if manual review is needed.
- Once approved, transfer initial funds (e.g., €100) from your linked bank account.
Why it matters: Proper verification is required by EU anti-money laundering (AML) laws. Funding the account enables you to proceed with investment purchases.
What can go wrong: Missing documents or discrepancies between your and your child’s information can delay approval. Some brokers require both parents to sign if both have legal custody.
Pro Tip
For Trade Republic: After logging in, go to Profile → Add Account → Junior Account and follow the prompts. For DEGIRO: Start at Open an Account → Minor Account and follow the specific upload instructions.
Step 4: Select Tax-Efficient, Child-Friendly Investments
What to do: Build a portfolio using EUR-denominated, UCITS-compliant ETFs. For broad, global exposure, consider:
- Vanguard FTSE All-World UCITS ETF (VWCE, ISIN: IE00BK5BQT80) – covers global stocks, accumulating (no distributions), EUR-traded.
- iShares Core MSCI World UCITS ETF (IWDA, ISIN: IE00B4L5Y983) – developed markets only, accumulating, EUR-traded.
- Xtrackers MSCI Emerging Markets UCITS ETF (XMME, ISIN: IE00BTJRMP35) – for emerging markets, accumulating, EUR-traded.
For most junior portfolios, a single all-world accumulating ETF (like VWCE or IWDA) is simple and effective. Accumulating ETFs automatically reinvest dividends, reducing administrative work and often improving tax efficiency for minors (depending on your country).
Why it matters: UCITS ETFs are designed for European investors and meet strict regulatory and tax standards. Accumulating funds avoid dividend payouts, which can trigger taxes or paperwork.
What can go wrong: Choosing distributing ETFs may complicate taxes or require annual reporting of dividends. Non-UCITS funds may not be eligible for sale to EU residents and can create tax headaches. For more, see How to Avoid Common ETF Tax Traps as a European Investor in 2026.
Pro Tip
In Trade Republic: Tap Portfolio → Savings Plan → Select ETF, search for “VWCE” or “IWDA”, enter your monthly contribution (e.g., €50), and confirm. In DEGIRO: Go to Products → ETFs → Search, select the ETF, and set up a recurring order (if available).
Step 5: Understand Taxation and Gifting Rules
What to do: Review your country’s tax rules for minors and gifting. Key considerations:
- Capital gains tax: In most EU countries, minors pay tax on gains above a certain allowance (e.g., €1,000–€2,000/year in Germany, France).
- Dividend tax: Even for minors, dividends are taxable. Accumulating ETFs can help reduce this burden.
- Gifting rules: Parents can often gift up to €100,000–€200,000 (depending on country) to children tax-free over a lifetime, but annual limits apply. Gifts above this are taxed. Check your country’s specifics.
- Reporting: Parents are usually responsible for declaring the child’s investment income on their own or the child’s tax return.
Why it matters: Tax allowances for children are generous in some countries, but exceeding them triggers reporting and possible tax bills. Gifting large sums in one go can waste annual allowances.
What can go wrong: Failing to declare investment income, or exceeding annual gifting allowances, can result in penalties. Using distributing ETFs can create unexpected tax liabilities. For more on dividends, see How to Avoid Dividend Withholding Tax as a European ETF Investor in 2026.
Pro Tip
Plan regular, smaller gifts to maximise tax-free thresholds over time. Keep detailed records of each transfer for future reference.
Step 6: Automate and Monitor for Long-Term Compounding
What to do:
- Set up a monthly savings plan (e.g., €50/month) into your chosen ETF(s) via your broker’s app or website.
- Check the account at least once per quarter to ensure contributions are going through and to rebalance if needed (typically not required for a single ETF portfolio).
Example: If you invest €50/month from your child’s birth until age 18 (216 months) and earn an average 6% annual return, the portfolio could grow to approximately €18,000 by adulthood – nearly half is growth from compounding.
Why it matters: Automating removes emotion and ensures consistent contributions. The earlier you start, the more time compounding works in your favour.
What can go wrong: Missing contributions due to failed bank transfers, or forgetting to update your plan as family circumstances change. Avoid frequent trading – stick to the plan for best results.
Pro Tip
Set a calendar reminder to review the account every 3–6 months. Use your broker’s mobile app for quick monitoring.
Common Mistakes When Setting Up Junior Investing Accounts in Europe
- Using non-UCITS or non-EU ETFs: These can trigger tax reporting nightmares and may be banned for EU residents.
- Choosing distributing funds for minors: Creates annual tax complexity – stick to accumulating ETFs when possible.
- Missing country-specific tax allowances: Not taking advantage of annual gifting or capital gains exemptions wastes tax benefits.
- Neglecting documentation: Incomplete records can cause problems when the child takes control at adulthood.
- Ignoring platform fees: Some brokers charge inactivity or custody fees on junior accounts – check before committing.
Next Steps
- Gather documents and open a junior account with a broker that supports minors in your country.
- Select a simple, tax-efficient ETF portfolio (e.g., VWCE or IWDA).
- Automate monthly contributions and use EUR for all transfers.
- Keep records of all gifting and investment transactions.
- Review your country’s tax rules annually to stay compliant and maximise benefits.
- For more on ETF selection, see IWDA vs. VWCE: Which 'All-World' ETF Should Europeans Own in 2026?.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always do your own research and consider consulting a qualified financial advisor before making investment decisions.