Today, the Official State Gazette (BOE) published the creation of the new European savings and investment account, “Financia Europa,” which allows users to buy and sell shares and investment funds within a “tax shield” without paying taxes on every transaction. It functions as if each citizen could hold a private investment fund, albeit primarily restricted to investments in European assets. Each individual may hold only one account. Contributions are made in cash, subject to a maximum cap of €150,000.
It consists of three components: a securities account, where shares and funds are deposited; an operational account, used to execute buys and sells and cover management expenses, which must maintain a minimum balance of €1,500 to ensure a genuine investment objective; and a counterparty account, from which the individual makes contributions and receives dividend payments. It is into this counterparty account that funds are transferred when the saver decides to redeem their money. The structure aims to clearly separate invested assets, operational liquidity, and earnings subject to standard taxation.
It offers two clear tax advantages for investors willing to take on some risk with their savings. Individuals can buy and sell shares, ETFs, or funds within the account without paying taxes on each trade. If an investor sells a European stock investment, no tax is owed on capital gains, provided the money is reinvested in other assets within three months. Until now, the ability to shift from one investment to another tax-free was reserved exclusively for investment funds or transfers between funds.
The second tax advantage comes when withdrawing money. Associated capital gains will benefit from a 100% exemption on the first €10,000, provided that five years have elapsed since the contributions generating those gains were made. If the capital gains exceed that amount, the excess will receive a 20% tax reduction.
Funds held in the account can be invested in publicly traded shares within the European Union. They can also be invested in investment funds with high exposure to Europe, as well as in exchange-traded funds (ETFs). The account requires these funds to allocate at least 50% of their portfolio to equities, with at least 35% specifically held in European stocks.
Investments made through the Financia Europa account cannot be directed toward SOCIMIs (listed real estate investment trusts). Nor can they be invested in SICAVs—the traditional investment vehicle for high-net-worth individuals—or financial derivatives. Ineligible investment funds or ETFs are likewise excluded.
Yes. Investors can switch banks or intermediaries while retaining their tax advantages and the original tenure of their contributions, similar to transfers between investment funds. The transfer must take place between accounts that comply with the Financia Europa framework, and it must be executed for the entire balance rather than as a partial transfer.
