Personal Investment Plans (PPI): BME's Proposal to Boost Retail Investment in Spain

The 2026 financial year begins with various initiatives on the table to encourage the return of retail investors to the markets. One of the most effective would be the creation of an umbrella account in line with the so-called “Swedish account,” offering great flexibility and simplified tax treatment. The development of “Personal Investment Plans (PPI)” is BME's proposal in light of the financing needs of the Spanish economy, the recommendations of the OECD, and the experience of other countries in our region.

Digitalization, longevity, climate change, and now defense are placing not only Spain but  the whole of Europe in a position where extraordinary financing needs must be met, and it is clear that bank loans and private capital will not be sufficient. Various sectors have highlighted the importance of channeling part of households' savings into capital markets so that they can contribute more actively and effectively to growth and also benefit from its results. One of the formulas that has worked best in other jurisdictions is the creation of an individual savings account that allows investment in different assets, with simplified taxation. This formula is in line with the Saving and Investment Union (SIU) initiative, which is included as a recommendation to the members of the European Commission, and on which the Ministry of Economy is already working, with its proposal having just been submitted for public consultation. 

BME's response to this consultation is based on the development of Personal Investment Plans (PPI), which is set out and detailed in a report commissioned by BME from César García Novoa, Professor of Financial and Tax Law at the University of Santiago de Compostela, entitled “The need to introduce a new tax incentive for family savings.” This proposal is in line with the recommendations of the European Union and the OECD and was also put forward two years ago in the set of 56 measures proposed in our Whitepaper on fostering the competitiveness of Spanish Capital Markets, based on the model of the account that exists in Sweden for savings and investment products known as “ISK accounts.” Given this convergence of views, which is reinforced by many other opinions from specialists consulted, we believe it is appropriate to take steps to put in place the necessary mechanisms to make what we call the Personal Investment Plan (PPI) available to families in Spain as soon as possible. PPIs consist of a basket, portfolio, or savings account for individuals, composed or materialized mainly by a predefined selection of investment and business financing products traded on securities markets. These financial assets are interchangeable without any tax cost for such transactions. The account is subject to a special tax regime that is settled once a year. The study presents technical tax aspects that support our proposal, as well as a comparative analysis of different savings account models in neighboring countries.

• Increase the quantity and quality of financing available for the growth and development of Spanish companies.
• Attract household savings to business financing processes through the markets.
• Increase the number of investors, the financial education of families, and the liquidity of our capital markets.

1. The investment products that can form the portfolio of each PPI are: shares of companies listed in European Economic Area (EEA) countries; corporate bonds of companies established in the EEA that are listed; European equity index ETFs; simple derivatives without special characteristics traded on organized markets; and other products that invest in business financing such as European Long-Term Investment Funds (ELTIFs).
2. No minimum or maximum contribution limits at the start or throughout the life of the PPI.
3. Full transferability. No limit or tax cost for assets included in PPIs held by the same owner and also from other accounts if they are assets eligible to form part of a PPI. 
4. No minimum holding periods.
   
5. No limitation on withdrawals. 
6. No capital guarantee from the State.
7. Simplified taxation based on the Swedish model: a single annual payment calculated as a percentage of the average value of the capital held and contributed to the PPI throughout the fiscal year.
8. Every adult can have as many PPIs as they want, but only one per institution.
   
9. Authorized financial institutions can offer PPIs, not just banks.