How to Open a Custody Account for Your Child: Tax-Advantaged EUR Investing in 2026

Setting up a child investment account in Europe—commonly called a custody or junior custody account—lets you give your child a head start on long-term wealth building. With tax incentives and the power of compounding over years, even modest EUR investments can snowball into meaningful sums by adulthood.

This step-by-step guide will walk you through the process, including required paperwork, tax perks, broker comparisons, EUR minimums, and legal nuances. As we covered in our Definitive Guide to Managing Money Across Europe, opening accounts for minors has unique legal and tax implications—so it pays to get the details right.

Step 1: Understand What a Child Custody Account Is (and Why It Matters)

A custody account for your child (sometimes called a "junior depot" or "minor account") is a brokerage account legally owned by the child but controlled by a parent or guardian until the child reaches majority (usually 18 in most European countries).

• Why it matters: It enables tax-efficient investing for your child, giving their money years of potential growth. Capital gains and dividends are typically taxed at the child's lower rate or benefit from child-specific allowances.
• What can go wrong: If the account is not set up correctly, you may lose tax benefits or face legal issues when transferring control at adulthood.

Step 2: Compare Brokers for Child Investment Accounts in Europe

Not every broker supports child custody accounts. Here are three of the most accessible and cost-effective platforms for European residents:

• DEGIRO (Official DEGIRO Junior Account Info): Available in most EU countries. Low fees, wide ETF selection, but requires paper application and original documents by post.
  • EUR minimum: No official minimum, but practical to start with at least €100–€200.
• Trade Republic (Official Trade Republic Help): As of 2026, offers junior accounts in Germany and expanding across the EU. App-based, easy to set up, strong ETF savings plans.
  • EUR minimum: Savings plans from €1/month.
• Interactive Brokers (IBKR) (Official IBKR Minor Accounts): Pan-European access, strong global platform, but more complex interface. Suitable for larger portfolios.
  • EUR minimum: €0, but practical to start with €100–€500 to justify paperwork.

Why this step matters: Fees, minimums, investment options, and paperwork requirements vary widely. Choosing the right broker now can save you time, money, and hassle later.

What can go wrong: Some brokers, especially traditional banks, charge high custody fees or offer poor ETF selection. Others may not allow withdrawals until age 18, even for emergencies.

Step 3: Gather the Required Documents

All brokers require proof of identity and relationship. Prepare these before starting your application:

• Parent’s valid ID or passport
• Child’s birth certificate (official, not a copy)
• Child’s ID or passport (if available; mandatory in some countries)
• Proof of address for both parent and child (recent utility bill, bank statement, or government letter)
• Tax identification number (TIN) for both parent and child (if required by broker regulations)

Why this step matters: Missing or outdated documents are the #1 cause of application delays or rejections.

What can go wrong: Incomplete paperwork can result in your application being rejected or stuck in compliance review for weeks.

Step 4: Apply for the Account on Your Chosen Platform

Let’s look at the practical steps for the most popular brokers:

• DEGIRO
  1. Download and print the Junior Account application form.
  2. Complete all sections, including legal guardian and child details.
  3. Attach certified copies of all required documents.
  4. Send the package by post to DEGIRO's address (see application form for details).
  5. Wait for confirmation (usually 3–5 business days after receipt).
• Trade Republic
  1. Open the Trade Republic app and tap "Profile" → "Add Account" → "Child Account."
  2. Follow the in-app instructions to upload documents and verify both parent and child.
  3. Set up a savings plan: Tap "Portfolio" → "Savings Plan" → "Select ETF." Choose an EU-domiciled, accumulating ETF (e.g., iShares Core MSCI World UCITS ETF EUR).
  4. Confirm the monthly investment amount (from €1/month).
• Interactive Brokers
  1. Go to IBKR Minor Account and start the online application.
  2. Fill in information for both parent/guardian and child.
  3. Upload scanned documents as requested.
  4. Wait for IBKR compliance to review and approve (usually within 1–3 business days).

Expected outcome: You should receive confirmation that the account is open and ready for funding. In Trade Republic, for example, the child’s account will appear as a separate portfolio in your app.

Step 5: Fund the Account and Set Up Investments

After account approval, transfer EUR funds from your bank account. Most brokers allow SEPA transfers; some support instant funding.

• DEGIRO: Go to "Deposit/Withdraw" and follow instructions for EUR funding.
• Trade Republic: Tap "Account" → "Deposit" and initiate a SEPA transfer.
• IBKR: Use the "Transfer & Pay" section to fund in EUR.

Once funded, set up an ETF savings plan for long-term, diversified growth:

• Trade Republic: Tap "Portfolio" → "Savings Plan" → "Select ETF" (e.g., iShares Core MSCI World UCITS ETF EUR, ISIN: IE00B4L5Y983). Set amount (e.g., €50/month), review, and confirm. You should now see your first ETF purchase pending for the next scheduled investment date.
• DEGIRO/IBKR: Search for your chosen ETF, enter the amount (e.g., €100), and place a buy order. Confirm the EUR amount and review order summary.

Why this step matters: Automated monthly investing removes emotion and maximizes long-term growth through euro-cost averaging.

What can go wrong: Manual investing risks missed months or emotional timing mistakes. Always double-check the ISIN (ETF identifier) to avoid buying the wrong product.

Step 6: Understand Tax Benefits and Reporting Requirements

Most European countries grant children their own annual capital gains and dividend tax allowances (e.g., Germany: €1,200/year; France: €1,000/year). Gains within these thresholds are tax-free, allowing significant compounding.

• Why it matters: Investing in your child’s name can save hundreds of euros in taxes each year versus keeping investments in your own account.
• What can go wrong: Exceeding annual allowances or failing to report gains can trigger penalties. Tax rules differ by country—always check your national tax authority.

Step 7: Know the Legal Implications and Transfer Rules

Custody accounts are the legal property of the child. Parents act as custodians and must use funds only for the child’s benefit. At age 18 (or the local age of majority), control must be transferred to the child.

• Why this step matters: Improper withdrawals or failing to transfer control can have legal and tax consequences.
• What can go wrong: Using funds for parental expenses, or not documenting the transfer, can be challenged by tax authorities or the child later.

Each broker handles the transition differently. Confirm their process in advance and set reminders as your child approaches adulthood.

Common Mistakes When Opening a Child Investment Account in Europe

• Using a parent’s account instead of a true custody account—this loses tax benefits and legal protection.
• Missing or outdated documents, causing application delays.
• Choosing a broker with high fees or poor ETF selection.
• Investing in US-domiciled ETFs (which may not be tax-efficient or even accessible for EU residents).
• Forgetting to update national tax authorities about the account, risking fines.
• Neglecting to document all contributions and withdrawals for future audits or the transfer process.

Next Steps

• Review your country’s specific tax rules for child investment accounts.
• Set up recurring monthly transfers to automate investing for your child.
• Consider reading our guide to budgeting apps for European families to help track contributions and goals.
• For more on European money management—including emergency funds, retirement strategies, and more—see our Europe-wide money management guide.

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.