General

As part of its efforts to build a Savings and Investments Union, the European Commission is supporting measures to create better financial opportunities for citisens who want to invest. To promote greater retail investor participation in capital markets, it provides a recommendation for Member States to establish and enhance existing Savings and Investment Accounts (SIAs).

SIAs are comparable to special bank accounts, offered by authorised financial services providers (e.g., banks and investment firms), which allow retail investors to invest in capital markets instruments. These accounts often come with simple tax rules and attractive tax benefits, making them a compelling option for citizens.

Key characteristics of effective SIAs

The recommendation is non-binding for Member States and serves as a blueprint for the establishment and development of SIAs, drawing on best practices. Following the recommendation, SIAs should have the following characteristics:

  • A wide range of providers: to promote competition and innovation, a broad range of authorised financial services providers such as banks and investment firms should be able to offer SIAs. Fees charged by financial services providers should be fair, proportionate and transparent for retail investors.
  • Flexibility: financial services providers should be able to offer SIAs on a cross-border basis without being subject to (regulatory) barriers. Portfolio transfers between financial services providers should not trigger a taxable event for income tax or affect existing tax benefits.
  • Scope of assets: investments in various financial instruments should be offered (g., at a minimum - shares, bonds and UCITS, including ETFs), allowing retail investors to diversify their investment portfolios, both across multiple asset classes and geographies. To limit risk exposure, high-risk and complex financial instruments should be excluded from the scope (e.g., some derivatives).
  • Simplicity and transparency: SIAs should provide a simple, reliable and easily accessible experience for retail investors by using user-friendly digital interfaces and providing high-quality customer service.
  • Facilitated tax compliance: comprehensive information on tax treatment and assets held in SIAs should be made available to retail investors in an accessible and understandable way. Member States should also ensure simple and easy tax compliance procedures that enables financial services providers to collect and withhold tax on behalf of the account holders and to share this information with the relevant tax authorities.
  • Beneficial tax treatment: Member States are encouraged to promote tax incentives and ensure that (assets held in) SIAs are at least subject to the most favourable tax treatment that is given to income from any asset class or given to an investment product or account. Read more about the tax considerations in our latest EU Tax Alert, October 2025 here. 
  • Awareness campaigns: Member States should raise public awareness of the benefits and risks related to the use of SIAs through campaigns.
Next steps

Member States are encouraged to periodically assess and report on the measures taken to implement the recommendations. Reporting can be done through the SIU monitoring processes and as part of the Midterm Review of the Savings and Investments Union strategy, which will be published in 2027. While the recommendation is non-binding and Member States are not required to implement it, the recommendation can influence national legislative agendas and policy debates. Additionally, the European Commission announced it will closely monitor the implementation of its recommendations.

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