Greece Creates Child Investment Accounts With State Match
by Bill Giannopoulos · Greek City TimesGreece will open child investment accounts from early 2027, with the state matching private family deposits of up to €1,200 a year for each child.
Kyriakos Pierrakakis, the minister at the Ministry of National Economy and Finance, submitted the bill that sets out measures from the Thessaloniki International Fair. Parliament is due to vote on it in the coming days.
Under the scheme, if a family deposits €1,200 in a year, the state adds another €1,200. That brings the annual total to €2,400 before investment returns or charges, according to the bill.
Initially, child investment accounts — the Individual Investment Account for Minors — will cover children born in 2025 and later. A legal representative can open an account before the child turns two.
Read more: European Commission Praises Greece for Progress on Tax Evasion
The beneficiary must hold Greek citizenship or citizenship of an EU member state and be a tax resident of Greece. Banks, fund managers and insurers can act as providers, according to the bill on the ministry site.
How child investment accounts work
Any natural or legal person can contribute, including parents, grandparents, godparents and businesses. Private contributions face an annual cap of €10,000 per child.
The state matches private payments up to €1,200 a year at first and credits its share within 30 days. However, the maximum state contribution rises by 10 per cent every five years.
Capital goes into mutual funds, ETFs and shares or bonds listed on EU or EEA markets. The bill bars crypto-assets, derivatives, leveraged products and structured products from child investment accounts.
Cash and money-market holdings may not exceed 5 per cent of the portfolio, subject to limited exceptions. Diversification rules apply.
Parents choose among four profiles: Conservative, Balanced, Growth and Dynamic. If they make no choice, the default is Growth with capital protection, then switches to Balanced three years before the child turns 18.
Tax rules and withdrawals
Capital protection on child investment accounts covers matched private and state amounts up to the annual matching limit. The default annual cost may not exceed 0.50 per cent of the account’s average value.
Families cannot withdraw from child investment accounts until age 18, except for death or serious health reasons. At 18, the young adult can withdraw or transfer the funds tax-free.
Contributions of up to €10,000 a year do not count as income for the minor. They are also exempt from gift tax, while dividends, interest and capital gains inside the account are exempt from income tax, according to the bill.
Greek City Times earlier reported that Greek household deposits had climbed to their highest level since 2011. In September, the government also set out a wider package of income measures tied to the Thessaloniki fair.
Source: Proto Thema
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