Μake us preferred on Google Greece plans to introduce long-term investment accounts for children from early 2027, allowing parents, relatives and other individuals to build savings for minors with matching contributions from the state and significant tax advantages.
The proposed scheme, known as the Individual Investment Account for Minors, is outlined in 18 articles of a draft bill published for public consultation by the Ministry of National Economy and Finance. The provisions set out how accounts will be opened, funded, managed and invested, as well as the conditions under which money can be withdrawn.
Under the plan, private contributions of up to €10,000 per child each year will be eligible for tax exemptions, while the state will match eligible contributions up to an annual limit of €1,200. The money will be invested through approved financial providers and made available to the child upon reaching adulthood.
The legislation also exempts contributions from certain tax and source-of-funds requirements. Under Article 41 of the draft bill, deposits into these accounts would not be subject to presumptive income assessments or gift taxes and other related charges. Contributions of up to €10,000 annually would not require depositors to demonstrate the source of the money under the relevant “source of wealth” rules.
Here are the main provisions of the proposed scheme.
1. What is the Individual Investment Account for Minors?
The account is designed as a long-term savings and investment vehicle held in a child’s name. It will collect contributions from private individuals and the state, with the funds invested to build up capital for the child to access upon turning 18.
Accounts will be offered through approved providers, including credit institutions, investment services firms and insurance companies.
2. Who can open an account, and how old can the child be?
An adult who is a Greek tax resident and has parental responsibility or legal custody of the child can apply to open an account with a provider.
The child must be younger than 2 when the application is submitted. Only one account will be allowed per child, linked to the child’s Greek tax identification number or Social Security Registration Number (AMKA).
Parents with more than one child may open a separate account for each.
3. Who can contribute, and what is the annual limit?
Parents, grandparents, other relatives and third parties will all be permitted to contribute.
The total amount deposited into an account cannot exceed €10,000 per year, regardless of how many people contribute.
4. How much will the state contribute?
The state will match 100% of eligible private contributions, up to a maximum annual contribution of €1,200.
For example:
- If family members contribute €600, the state will add another €600.
- If they contribute €1,200, the total will reach €2,400 before investment returns and fees.
- Contributions above the amount eligible for the maximum state match will not increase the state’s payment beyond the annual cap.
The maximum state contribution will increase by 10% every five years.
5. Must contributions be made every month?
No. Families can deposit money whenever they choose and can afford to do so during the year.
The state will match eligible contributions of up to €100 per month, with an annual reconciliation to account for contributions that vary from month to month. The final calculation will take into account eligible contributions credited by Dec. 31, subject to the annual limit.
The Independent Authority for Public Revenue (AADE) will credit the state contribution within 30 calendar days after an eligible contribution has been irrevocably credited to the account.
6. Who will manage the money?
Until the child turns 18, the account will be managed by the person or people with parental responsibility or legal custody.
They will be able to select products or services offered by banks, investment services firms, insurance companies and other eligible financial institutions. The rules will also allow self-directed management, under which the legal account manager makes investment decisions and executes them through a provider in accordance with the scheme’s requirements.
7. How will the money be invested?
Permitted investments will include mutual funds and exchange-traded funds structured as Undertakings for Collective Investment in Transferable Securities (UCITS), as well as shares and bonds traded on regulated markets in the European Union.
Bank deposits and money market mutual funds will generally be subject to a combined limit of 5% of the portfolio.
Cryptocurrencies, leveraged products and other complex financial products will be excluded.
The scheme will offer four investment profiles: conservative, balanced, growth-oriented and dynamic.
8. Is the money guaranteed, and what fees will apply?
Each provider must offer at least one product for every investment profile that includes a mechanism guaranteeing private contributions and the state’s contribution.
However, choosing a guaranteed product will not be mandatory, meaning capital protection will not automatically apply to every investment option.
If no investment choice is specified, the provider must place the money in a conservative, capital-guaranteed product. The total annual cost of this default option cannot exceed 0.50%. All direct and indirect charges must be disclosed in advance.
9. Can money be withdrawn before the child turns 18?
As a general rule, withdrawals will be prohibited until the child reaches 18.
Exceptions will apply in the event of the death of a parent, a person with parental responsibility or legal custody, or the child. Early withdrawals will also be permitted in cases involving a serious health condition affecting the child, provided it is certified by a public hospital.
If money is withdrawn in violation of the restrictions, the full state contribution, together with the returns generated by that contribution, must be repaid to the state.
10. What tax benefits will the scheme provide?
Eligible private contributions of up to €10,000 per year and the state contribution will not count as the child’s taxable income or be included in the criteria used to determine eligibility for social benefits.
Private contributions will also be exempt from gift and parental-gift taxes. Within the €10,000 annual limit, the relevant presumptive income and source-of-funds requirements will not apply.
Dividends, interest and capital gains generated within the account will also be tax-exempt.
11. Can the account be transferred, and what happens at age 18?
Families will be able to transfer an account to another provider without losing benefits or rights. The transfer will carry no fee or early-exit penalty and must be completed within 10 business days after a complete application is submitted.
When the child turns 18, the account holder will decide how to use the accumulated funds. The options will include withdrawing the entire balance, transferring it to a personal deposit or investment account, or making a partial withdrawal while transferring the remainder.
These withdrawals and transfers will not be treated as taxable transactions.
