The planned "Zukunftsdepot" (future deposit) is intended to further promote long-term wealth accumulation through securities investments for children in Austria. It is designed as a tax-advantaged investment account that allows parents to invest on behalf of their children in broadly diversified mutual funds, ETFs and Austrian government securities (Bundesschatz).
Under the current proposal, the Zukunftsdepot is expected to launch on 1 July 2027. The proposed legislation is expected to enter the consultation process at the end of October.
The planed "Zukunftsdepot" at a glance
- For children and adolescents: The tax benefits are generally intended to apply to those under 18.
- 500 Euro initial credit: For children born on or after January 1, 2027, a government-provided initial credit of 500 euros is planned.
- Up to 5,000 euros per year: It will be possible to contribute this amount annually per child.
- Funds and ETFs: Investments are to be made primarily through UCITS investment funds, including ETFs, as well as in federal treasury securities. Individual stocks are not included in the current plans.
- Tax advantage: Under the proposed model, capital gains from the “Zukunftsdepot” will be exempt from capital gains tax (KESt) when withdrawn on or after the child’s 18th birthday. Ongoing income such as dividends and interest will continue to be taxed.
- Long-term investment: Early withdrawals will only be permitted in exceptional cases.
- Consultation: Before opening the investment account for the first time, parents would be required to attend a consultation, with the option to opt-out.
Why the "Zukunftsdepot" is a step in the right direction
The Vienna Stock Exchange welcomes the "Zukunftsdepot" as an important step towards encouraging long-term wealth building through securities and further integrating the capital market into retirement planning. When it comes to investing in securities, the start is more important than the initial capital. Those who start investing early can benefit from more than just a long investment horizon. The "Zukunftsdepot" offers the opportunity to naturally introduce the younger generation to securities ownership and to turn financial education into practical experience. In this way, it can help build on Austria’s strong savings tradition and foster a broader culture of investment and participation in the capital markets. The specific design of the program will be crucial. Key factors include free choice of products, broad diversification, low fees and straightforward tax rules.
However, the "Zukunftsdepot" can only be a first step: From the Vienna Stock Exchange's perspective, Austria needs an attractive framework for long-term wealth building through the capital markets for all generations.
