Before You Start
- Know your country’s rules for junior (minor) investment accounts—requirements and legal guardianship vary.
- Have valid ID documents for both the minor and the parent/guardian (passport, proof of address).
- Decide if you want a custodial account (parent-controlled until legal age) or an account in the child’s name (where permitted).
- Research your local tax rules for gifts, investments, and capital gains for minors.
- Choose your preferred broker—see the comparison in Step 2.
Time needed: 1–2 hours for setup, ongoing time for maintenance and contributions
What you'll need: Parent’s and child’s ID, proof of address, bank account, access to a European investment platform
Setting up a junior investment account in Europe for your child or grandchild is one of the smartest ways to give them a head start. By investing early, you benefit from compounding returns and can optimise for taxes across borders. This guide walks you through every step, with real EUR examples, platform recommendations, and 2026-specific tips for European residents.
Step 1: Understand the Legal & Tax Framework in Your Country
What to do: Research your country’s regulations for opening investment accounts for minors. Key questions:
- What is the legal age for investing?
- Can the account be in the child’s name, or must it be a custodial account?
- Are there annual tax-free allowances for gifts or investment income for minors?
Why it matters: Each EU country (and the UK, Norway, Switzerland) has different rules for junior accounts. For example, in Germany, parents can open a Depotkonto for a minor, but in France and the Netherlands, the process and taxation differ. Some countries offer tax-free allowances for children, while others tax all investment income regardless of age.
What can go wrong: Opening the wrong type of account could result in unexpected taxes or even legal complications. For example, exceeding annual gift allowances in Spain or Italy may trigger gift taxes.
Pro Tip
Contact your local tax authority or a fee-only financial advisor before opening the account. Keep a record of all gifts and contributions for future tax reporting.
Step 2: Choose a European Broker That Supports Junior Accounts
What to do: Compare brokers that accept minors or custodial accounts, support EUR accounts, and offer low fees. Here’s a 2026 comparison:
| Broker | Junior Accounts | EUR Support | Min. Age | Key Fees | Where Available |
|---|---|---|---|---|---|
| DEGIRO | No (personal accounts 18+ only) | Yes | 18+ | €1–2/trade | EU-wide |
| Trade Republic | No (personal accounts 18+ only) | Yes | 18+ | €1/trade, €0 for savings plans | EU, Norway |
| Flatex | Yes (Germany: Junior Depot) | Yes | 0+ (with parent) | €0–5/trade | Germany, Austria |
| Keytrade Bank | Yes | Yes | 0+ (with parent) | €7.95/trade | Belgium |
| Your Local Bank | Usually Yes | Yes | 0+ (with parent) | €5–20/trade | Country-specific |
In most of Europe, online brokers like DEGIRO and Trade Republic do not offer junior accounts. You will usually need to use a traditional bank, a regional broker, or specialist providers (e.g., Flatex for Germany, Keytrade Bank for Belgium).
Expected outcome: You should now have a shortlist of brokers in your country that offer junior investment accounts with EUR support.
Pro Tip
If you plan to use ETFs, check for brokers with free ETF savings plans. This can save you €30–€100/year in fees vs. manual investing.
Step 3: Gather Documents and Open the Junior Account
What to do: Prepare the required documents:
- Child’s passport or national ID
- Parent/guardian’s passport or ID
- Proof of address for both (utility bill, bank statement)
- Child’s birth certificate (many banks require this)
- Tax identification numbers (TINs) for parent and child
Visit the broker’s website or local branch. For example, with Flatex Germany:
- Go to Flatex Junior Depot
- Click “Jetzt Junior-Depot eröffnen”
- Complete the online form (parent’s details, child’s details)
- Upload required documents
- Verify your identity via video call or at a post office (PostIdent)
Why it matters: Incomplete or incorrect documentation is the #1 reason for application delays. Banks are strict about anti-money laundering (AML) and know-your-customer (KYC) rules, especially for minors.
What can go wrong: Missing a required document can delay your application by weeks. Always check the broker’s checklist before starting.
Step 4: Fund the Account and Set Up Regular Contributions
What to do: Once your account is approved, transfer your first funds from your EUR bank account. For tax efficiency, keep annual contributions within your country’s tax-free gift/investment limits for minors. For example:
- Germany: Up to €6,000/year in gifts to children is tax-free (2026 limit).
- France: €31,865 every 15 years per child (gift tax-free allowance, 2026).
- Netherlands: €6,633/year (2026) tax-free gift allowance to children.
Set up a standing order (bank transfer) for monthly contributions. Example: €100/month for 18 years can grow to over €35,000 at a 6% average annual return.
Expected outcome: You should see your first deposit appear in the junior account within 1–2 business days.
Pro Tip
Automating contributions helps you stick to your investment plan and makes the most of compounding. Many brokers let you create automatic ETF savings plans—see below.
Step 5: Select Tax-Efficient Investments (UCITS ETFs)
What to do: For most Europeans, UCITS ETFs are the most tax-efficient and diversified option for minors. They are EUR-denominated, domiciled in the EU, and offer built-in tax reporting for many countries. Choose accumulating (not distributing) ETFs to minimise annual taxes in countries like Germany and France.
Example: To buy the iShares Core MSCI World UCITS ETF (Acc) (ISIN: IE00B4L5Y983):
- Log in to your broker (e.g., Flatex or Keytrade Bank).
- Search for the ETF by ISIN (IE00B4L5Y983).
- Choose "Buy" and enter the desired amount (e.g., €100).
- Confirm the purchase.
In Trade Republic: (if you open an account once your child turns 18) tap Portfolio → Savings Plan → Select ETF and search for the ISIN above.
Why it matters: UCITS ETFs are compliant with EU investor protection rules, and accumulating versions reduce paperwork and annual tax drag in many countries.
What can go wrong: Accidentally choosing a non-UCITS ETF or a distributing ETF can create tax headaches, especially if you need to file for withholding tax reclaims.
Pro Tip
Consider adding a UCITS bond ETF for diversification. A simple 80/20 split between global equities and bonds works well for long-term junior investing.
Step 6: Optimise for Taxes and Track the Account
What to do: Keep annual contributions below your local tax-free allowance. Each year, download the annual investment statement from your broker for tax reporting. In some countries, you must declare the account annually, even if no tax is due (e.g., in France, Belgium).
Use a free portfolio tracker (e.g., justETF) to monitor performance and rebalance yearly if needed.
Why it matters: Staying within allowances avoids triggering gift or income taxes. Accurate records make it easier if the child later applies for student aid or government benefits.
What can go wrong: Missing annual declarations can result in fines. Over-contributing could trigger unexpected taxes for you or your child.
Pro Tip
Review your strategy each year. As your child approaches 18, consider switching to more conservative investments or transferring the account to their name (where allowed).
Common Mistakes When Setting Up a Junior Investment Account in Europe
- Ignoring tax-free limits: Over-contributing can result in avoidable taxes or fines.
- Using high-fee bank products: Traditional banks often charge 10x more in fees than online brokers or direct platforms.
- Choosing non-UCITS or distributing funds: This can increase tax complexity and lower net returns.
- Not tracking contributions: Always keep a log of who gave what, when, and how much—especially across families.
- Forgetting to rebalance: Over time, your allocation can drift. Rebalance annually to stick to your plan.
For more pitfalls to avoid, see Avoid These 7 Costly Mistakes When Building Your First Investment Portfolio as a European.
Next Steps
- Compare EUR children’s savings accounts for more options in the Best EUR Savings Accounts for Children in Europe (2026 Comparison).
- If your child is a teenager, explore brokerage accounts for teens in How to Open a EUR Brokerage Account for a Teenager in Europe (2026 Guide).
- Want to build a broader wealth plan? See our Ultimate 2026 Guide to Passive Income for Europeans.
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.