Share savings plan

The PEA (Plan d’Épargne en Actions) is a particularly attractive savings and investment solution for individuals who want to grow their capital while benefiting from a favourable tax regime. Available to anyone who is a French tax resident, it allows you to invest in a portfolio of eligible European equities or UCITS, with a sliding scale of taxation depending on the length of time the plan is held.

There are two main types:

• the traditional PEA, with a maximum contribution of €150,000,

• the SME-ETI PEA, specifically geared towards financing small and medium-sized enterprises, capped at €225,000.

The same taxpayer can combine the two, with an overall cap of €225,000 (or €450,000 for couples who are jointly taxed).

The economic and legal advantages of the PEA

The PEA is a flexible capitalisation tool. It allows you to:

• generate regular or one-off additional income,

• prepare for retirement with the option of a lump sum or life annuity payout,

• freely switch between different tax-free investment vehicles,

• benefit from complete flexibility in payments: there is no minimum amount or frequency requirement.

However, the PEA remains a risky investment, exposed to fluctuations in the financial markets. Subscribers must therefore define their investor profile and adjust their asset allocation according to their investment horizon and risk tolerance level.

The tax regime for PEA savings plans

• in the closure of the plan and the taxation of gains at a flat rate of 12.8% (or a progressive income tax scale, if chosen), plus social security contributions of 17.2%.

• After 5 years: withdrawals no longer result in the closure of the plan. Capital gains and dividends become exempt from income tax, with only social security contributions remaining payable.

• Lifetime annuity: total exemption from income tax after 5 years, with only social security contributions payable.

  This mechanism encourages people to consider the PEA as a long-term investment, ideal for preparing for a wealth management project or supplementary income for retirement.

How the PEA works and conditions for opening an account

There are two types of PEA available:

• Bank PEA: comprising a cash account and a securities account, allowing you to buy eligible shares, convertible bonds or UCITS directly.

• Insurance PEA: backed by a capitalisation contract, invested in units of account (UCITS, equity funds, etc.), with the option of a life annuity payout.

Any adult who is a French tax resident may open a PEA, with a limit of one PEA per person (and one PEA SME-ETI). Adult children who are part of their parents' tax household may also open a PEA, with a reduced ceiling of €20,000.

The plan can only be funded by cash payments. Securities already held cannot be transferred to it.Durée et gestion du PEA

The PEA has no legal maximum term. It can remain open for the entire lifetime of the subscriber.

• Before 5 years: any withdrawal results in closure (except in cases of redundancy, disability, early retirement or the creation/takeover of a business).

• After 5 years: partial withdrawals are possible without closure, with tax benefits maintained and the possibility of new payments.

This flexibility makes it an instrument that can be adapted to different wealth management projects: capital accumulation, generation of additional income, retirement planning.

Wealth management strategies with the PEA

The PEA can serve several purposes:

1. Build and grow capital

   • Invest in shares or equity funds to take advantage of the potential for higher returns on the financial markets.

   • Diversify your portfolio (sectors, geographical areas, company sizes).

   • Use SME-ETI PEA savings plans to support the real economy and benefit from growth opportunities.

2. Securing your savings before maturity

   • Gradually reduce risk by shifting investments towards more conservative instruments as retirement age approaches (money market funds, convertible bonds, cash).

   • Implement management mechanisms (stop-loss, scheduled arbitrage) to protect accumulated gains.

3. Earn additional income

   • One-off or scheduled withdrawals after 5 years, without losing tax benefits.

   • Conversion into a life annuity to guarantee regular income for life (with the option of reversion to protect a spouse).

Key points to remember about the PEA

• Two types: traditional PEA (€150,000) and SME-ETI PEA (€225,000).

• Very advantageous tax treatment after 5 years of ownership.

• Flexible management and trading without intermediate taxation.

• A tool suited to retirement planning and long-term capital accumulation.

👉 In summary, the PEA is one of the best tax envelopes available in France for growing capital in shares while benefiting from reduced taxation, provided that the holding period is respected. When well managed and integrated into an overall wealth strategy, it is a powerful lever for increasing future income and diversifying wealth.

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