Step-by-Step Guide: Opening a Kids Investment Account in Europe—Tax Benefits & Best ETFs for 2026

Step 1: Compare Brokers Supporting Kids Investment Accounts in Europe

Not all European brokers allow minors (under 18) to have investment accounts. Start by listing those that do, as each has unique requirements and features. Choosing the right broker is critical because it affects fees, available ETFs, and ease of account management.

• Trade Republic (Germany, Austria, France, Spain, Italy): Offers custody accounts for minors (Eltern-Depot). Both parents’ consent is required.
• FlatexDEGIRO (DE, NL, AT, ES, FR, IT, PT): Child accounts (Kinderdepot) with parental oversight. Paper forms and ID verification required.
• BNP Paribas Easy Invest (Belgium, France): Offers youth investment accounts.
• Keytrade Bank (Belgium): Invest for minors with full parental control.

What can go wrong? Many brokers do not support minors or only do so in certain countries. If you try to open an account with a broker that doesn’t support minors, your application will be rejected. Always check the broker’s help center for up-to-date policies.

Step 2: Gather Required Documents for Account Opening

Every broker will require identity verification for both the child and the parent(s) or legal guardian(s). This is to comply with anti-money laundering (AML) and Know Your Customer (KYC) regulations.

• Child’s passport or national ID card
• Parent/guardian passport or national ID card
• Proof of address for both (utility bill, bank statement, not older than 3 months)
• Child’s birth certificate (sometimes required to prove parental relationship)
• Tax identification numbers (TIN) for both child and parent(s)

Why it matters: Missing or expired documents will delay or block the account opening process. Some brokers require notarized copies or translations if your documents are not in the local language.

What can go wrong? Incomplete or mismatched documents (e.g., address mismatch between parent and child) can result in account rejection. Always double-check document validity and broker-specific requirements.

Step 3: Register the Kids Investment Account

The registration process is usually online but may involve some paperwork, especially for minors. Below are concrete steps for two popular brokers:

• Trade Republic:
  1. Go to the minors’ account page.
  2. Download and complete the application form (“Antrag auf Eröffnung eines Depots für Minderjährige”).
  3. Both parents must sign. Attach required documents (IDs, birth certificate).
  4. Submit the form via the broker’s instructions (usually by post).
  5. After verification, you receive login credentials for the child’s account.
• FlatexDEGIRO:
  1. Visit the child account FAQ page.
  2. Request the account opening form for minors.
  3. Complete and sign (parent/guardian + child if old enough).
  4. Mail the form with necessary documents as per instructions.
  5. Wait for confirmation—this can take 1–2 weeks.

Expected outcome: You should receive confirmation and access to your child’s brokerage account, ready for funding.

Step 4: Fund the Account and Set Up a Savings Plan

Once the account is open, transfer funds from your bank account. Most brokers accept SEPA transfers; some allow direct debit setup for regular monthly investments.

1. Log in to your broker’s dashboard.
2. Locate the “Deposit” or “Fund Account” option.
3. Transfer your chosen initial amount (e.g., €100).
4. For regular investing, set up a “Sparplan” (savings plan)—available on platforms like Trade Republic and FlatexDEGIRO.

Why it matters: Automating contributions builds long-term discipline and benefits from euro-cost averaging, which helps smooth out market volatility.

What can go wrong? Incorrect bank details or reference numbers can delay or misdirect your transfer. Always double-check payment instructions.

Step 5: Understand Tax Benefits for Kids Investment Accounts in Key EU Countries

Children in many EU countries benefit from tax allowances or exemptions on investment income. However, rules vary, and parents may have reporting obligations. Here’s a snapshot of major regions:

• Germany: Children receive their own Sparer-Pauschbetrag (€1,000/year tax-free capital gains). Income above this is taxed at 25% plus solidarity surcharge. If total family income is high, “Kinderfreibetrag” may apply for further benefits.
• France: Investment income for minors is usually taxed as part of the parent’s income but can benefit from family quotient reductions. Special child savings accounts (PEA Jeune) offer tax breaks after five years.
• Belgium: No capital gains tax for private individuals on most shares/ETFs. Interest above €980/year (2026 threshold) is taxed at 15%.
• Netherlands: Children’s assets are included in parents’ Box 3 wealth tax calculation. No separate allowance for minors.

What can go wrong? Failing to declare a child’s investment income can result in fines. If you plan to gift large sums, check local gift tax rules.

For a deeper breakdown of ETF tax strategies, see How to Minimize Taxes on Your ETF Portfolio in Europe: 2026 Strategies and EUR Examples.

Step 6: Choose the Right UCITS ETFs for Kids (2026 Edition)

For minors, prioritize broad, low-fee, accumulating (reinvesting) UCITS ETFs. These are tax-efficient and compliant with EU regulations. Here’s a shortlist available on most European platforms:

• Vanguard FTSE All-World UCITS ETF (IE00B3RBWM25)
  Global stocks, 0.22% TER, accumulating & distributing versions available.
• iShares Core MSCI World UCITS ETF (IE00B4L5Y983)
  Developed markets, 0.20% TER, accumulating.
• Xtrackers MSCI Emerging Markets UCITS ETF (IE00BTJRMP35)
  Emerging markets, 0.18% TER, accumulating.
• Amundi Prime Global UCITS ETF (LU1931974692)
  Global stocks, 0.05% TER, accumulating.
• iShares Core € Govt Bond UCITS ETF (IE00B4WXJJ64)
  Eurozone government bonds, 0.20% TER, accumulating.

Why it matters: UCITS ETFs are regulated for investor protection and tax compliance in Europe. Accumulating versions are often more tax-efficient for minors, as they automatically reinvest dividends.

For more on building diversified, tax-efficient portfolios, see The Ultimate 2026 Guide to UCITS ETFs.

Step 7: Model EUR Portfolios for Different Age Groups

The right allocation depends on your child’s age and when they’ll need the money. Here are sample portfolios (all with accumulating UCITS ETFs, using €100/month as the example):

Age Group	Equities	Bonds	Example ETFs	Example Split (€100/mo)
0–7 years (longest time horizon)	90%	10%	Vanguard FTSE All-World (IE00B3RBWM25) iShares Core € Govt Bond (IE00B4WXJJ64)	€90 / €10
8–13 years	80%	20%	iShares Core MSCI World (IE00B4L5Y983) iShares Core € Govt Bond (IE00B4WXJJ64)	€80 / €20
14–17 years (shorter time horizon)	60%	40%	Amundi Prime Global (LU1931974692) iShares Core € Govt Bond (IE00B4WXJJ64)	€60 / €40

Expected outcome: After setting up your savings plan, you’ll see monthly purchases in your child’s account, with portfolio value updating automatically.

Common Mistakes

• Opening an account with a broker that doesn’t support minors, leading to wasted time and rejected applications.
• Forgetting to update tax authorities about a child’s investment income where required.
• Choosing distributing instead of accumulating ETFs—this can create unnecessary tax paperwork for minors.
• Setting up savings plans without checking minimum investment amounts, resulting in failed purchases.
• Neglecting to adjust the portfolio as your child approaches adulthood (reduce risk by increasing bonds).

Next Steps

• Review your country’s specific tax allowances for minors every year—thresholds can change.
• Increase savings amounts as your financial situation improves to benefit from compounding.
• Educate your child about investing as they grow—let them help choose ETFs or review statements together.
• Plan the account transition for when your child turns 18—most brokers require a formal transfer process.

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.