Before You Start
- All account holders must be over 18 and residents in an EEA country or Switzerland
- Each joint holder must have a valid government-issued ID and proof of address (utility bill, bank statement, or official letter, less than 3 months old)
- Decide on the legal structure: “joint tenants” (equal rights) vs “tenants in common” (split shares)
- Agree on investment goals, risk tolerance, and contribution plan
- Check your country’s taxation rules for joint investment accounts
Time needed: 1–2 hours for setup, plus a few days for verification
What you'll need: Valid ID, proof of address, EUR bank account, tax numbers for each holder, access to a computer or smartphone
Opening a joint investment account in Europe is a practical way for couples, families, or partners to manage assets together. But to do it right, you need to understand the legal setup, documentation, taxation, best brokers, and the mechanics of managing shared investments. This guide will walk you through each step, using EUR examples and Europe-accessible platforms.
Step 1: Decide on the Right Legal Structure
What to do: Choose the legal arrangement for your joint investment account: “joint tenants” (both parties own the assets equally and have full rights to the account) or “tenants in common” (each party owns a specific share, e.g., 60/40).
- Joint tenants: Common for married couples. On the death of one holder, ownership automatically passes to the survivor.
- Tenants in common: Often used by business partners or family members. Each person’s share is part of their estate and can be inherited.
Why it matters: Your choice affects inheritance, tax, and control over the account.
What can go wrong: If you don’t clarify the structure, disputes can arise over withdrawals, inheritance, or tax reporting—especially if account holders have different expectations.
Pro Tip
Write down your agreement (even informally) about contributions, withdrawals, and what happens if one party wants to close the account. This avoids confusion later.
Step 2: Gather Required Documentation
What to do: Ensure each account holder has:
- Valid government-issued ID (e.g., passport or national ID card)
- Recent proof of address (utility bill, bank statement, or government letter, less than 3 months old)
- Tax identification number (TIN) for your country
Why it matters: EU anti-money laundering (AML) laws require brokers to verify all account holders’ identities and addresses. Missing or outdated documents will delay your application.
What can go wrong: If names or addresses don’t match exactly across documents, or if your proof of address is outdated, brokers will reject your application or ask for more information.
Step 3: Choose a Broker That Supports Joint EUR Accounts
Not all European brokers offer joint investment accounts. Here’s how the main platforms compare:
- DEGIRO: Supports joint accounts in most EEA countries. See their official FAQ.
- Interactive Brokers (IBKR): Supports joint accounts for EU residents. See their account types page.
- Trade Republic: Does not currently support joint accounts (as of June 2024).
For this guide, we’ll focus on DEGIRO and Interactive Brokers, as they both support joint EUR investment accounts.
Why it matters: Choosing a broker that allows joint accounts is essential. Many popular platforms (e.g., Trade Republic, Scalable Capital) only offer individual accounts.
What can go wrong: Attempting to open a joint account on a platform that doesn’t support it will waste your time and may require you to re-submit documents elsewhere.
Pro Tip
Check the broker’s fee schedule and EUR deposit/withdrawal options. For example, DEGIRO allows free EUR SEPA transfers, while IBKR may charge for wire transfers under €2,000.
Step 4: Open and Fund Your Joint EUR Investment Account
DEGIRO Instructions:
- Go to DEGIRO’s homepage and click “Open an Account”.
- Choose “Joint Account” when prompted.
- Enter details for both account holders, upload ID and proof of address for each, and provide both TINs.
- Wait for verification (usually 1–2 business days).
- Once approved, transfer EUR from a joint or individual bank account via SEPA.
Interactive Brokers (IBKR) Instructions:
- Visit the IBKR registration page and select “Joint Account”.
- Fill in personal details for both holders, upload documents, and complete the tax forms (W-8BEN for non-US residents).
- Verification can take up to 3 business days.
- Fund your account by transferring EUR from your bank. IBKR provides a unique reference code for each deposit—use this exactly as given.
Expected outcome: Once your joint account is funded, you’ll see your EUR balance and can start investing together.
What can go wrong: If you forget to use the exact deposit reference (at IBKR), your funds may be delayed or returned. If documents don’t match, you’ll be asked to resubmit.
Step 5: Understand Taxation for Joint Investment Accounts
What to do: Determine how investment income (dividends, interest, capital gains) from your joint account will be taxed in your country. In most EU countries, income is split 50/50 unless otherwise specified.
- In Germany: Each holder must declare their share of income/capital gains on their tax return. See this guide to interest taxation in Germany, France, and Spain.
- In France: The “foyer fiscal” (household tax unit) is used for married couples, but unmarried partners may need to declare separately.
- In Spain: Both holders declare their share; local “impuesto sobre la renta de las personas físicas” (IRPF) rules apply.
Why it matters: Misreporting can lead to fines or double taxation. Joint accounts don’t mean joint taxation—each person must report their share correctly.
What can go wrong: If you don’t keep records of each person’s contribution and share of income, tax authorities may challenge your filings or apply the highest rate to all income.
Pro Tip
Download annual tax reports from your broker (DEGIRO and IBKR both provide these in EUR) and keep a spreadsheet tracking each holder’s contributions, withdrawals, and income split.
Step 6: Invest Together—Best Practices for Joint Asset Management
What to do: Agree on investment strategy, what you’ll buy, and how decisions are made. Use EUR-denominated ETFs and stocks available to both holders. Example:
- Choose a low-cost EUR ETF, such as iShares Core MSCI World UCITS ETF (EUNL.DE)—TER 0.20%, EUR-denominated, listed on Xetra.
- In DEGIRO: Go to “Products” → “ETF” → Search “EUNL” → Click “Buy” → Enter amount in EUR → Confirm order.
- In IBKR: Go to “Trade” → “Stocks/ETFs” → Search “EUNL” → Enter EUR amount → Review and submit.
Expected outcome: You should now see your ETF holding in your portfolio, with current EUR value displayed for each holder.
Why it matters: Clear rules prevent disputes. For example, agree on a withdrawal policy: “No funds withdrawn unless both parties sign off.”
What can go wrong: If one person makes trades or withdrawals without agreement, trust can be broken and legal issues may arise.
Pro Tip
Set calendar reminders for regular account reviews and rebalancing. Use a shared Google Sheet to track who contributed what and current asset allocation.
Step 7: Plan for Withdrawals and Account Changes
What to do: Agree on how and when withdrawals can occur. Both DEGIRO and IBKR require both holders’ approval for changes to account details or closure.
- For withdrawals, both holders may need to approve (depending on broker and country).
- If one party passes away, joint tenant accounts usually transfer assets to the survivor. Tenants in common: the deceased’s share goes to their estate.
Why it matters: Planning avoids delays or disputes if someone needs to access funds in an emergency.
What can go wrong: If you don’t specify withdrawal rules, one person could move assets unilaterally, or heirs could face legal hurdles.
Common Mistakes When Opening a Joint Investment Account in Europe
- Using a broker that doesn’t support joint accounts (e.g., Trade Republic)
- Submitting inconsistent or outdated documentation
- Assuming joint accounts mean joint taxation—always check your country’s rules
- Not tracking each person’s contributions and share of income
- Failing to agree on investment and withdrawal policies in writing
Next Steps
- Review how savings accounts compare to joint investment accounts for EUR goals in this comprehensive EUR savings account guide.
- For budgeting your shared investments, see how to create a zero-based budget in EUR.
- Want to maximize returns? Learn about compound interest for EUR investors.
- Moving money between EUR accounts? Avoid hidden FX fees with these transfer tips.
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.