EU Proposes Tax Breaks to Boost Savings and Investment

The European Commission on Tuesday proposed a mix of tax exemptions, deferrals and simplifications to encourage citizens to open savings and investment accounts.

The proposal, which is not binding, is part of the commission’s so-called Savings and Investments Union, an initiative meant to integrate the EU’s capital markets and financial systems.

Tax incentives “are key in encouraging the SIAs and achieving broader retail investor participation,” according to the commission press release, which referred to savings and investment accounts. The commission also recommended simplifying tax compliance for investors including by “relying on SIA providers for tax declarations.”

The commission’s proposed ...