PEA 2026: France's Tax-Sheltered Equity Account Explained

What the PEA is

The Plan d'Épargne en Actions is an individual securities account combined with a cash account (compte espèces), wrapped in a tax envelope. You open it at a bank or broker (BoursoBank, Fortuneo, Bourse Direct, Trade Republic via partnership), fund the cash side from your French bank account, and buy eligible securities. Dividends and capital gains stay inside the wrapper; you only pay tax when you withdraw — and only at the social-charges level once the 5-year clock has run.

One PEA classique per person, maximum two per fiscal household (couples). Plus one PEA-PME per person dedicated to small and mid-cap European companies. The PEA-Jeunes (EUR 20,000 ceiling) is available for 18–25 year olds still attached to their parents' tax household.

What you can hold in a PEA

Direct equities of companies headquartered in the EU or EEA (Norway, Iceland, Liechtenstein). UK shares became ineligible after Brexit; existing positions had to be transferred out. American shares (Apple, Microsoft, Tesla) are NOT eligible — this is the main limitation.

ETFs and UCITS funds qualify if they hold ≥75% in eligible securities OR if they are domiciled in an EU country and structured to replicate eligible indices. Crucially, several Amundi, Lyxor and BNPP ETFs use synthetic replication to provide PEA-eligible exposure to the S&P 500, MSCI World and Nasdaq-100 — you get global equity diversification despite the legal restriction. Always check the KID for the 'PEA-éligible' line.

Ceilings and contributions

PEA classique ceiling: EUR 150,000 in deposits (not in portfolio value — your portfolio can grow well beyond this). PEA-PME: additional EUR 75,000. Combined ceiling EUR 225,000 per person. Couples can therefore shelter EUR 450,000 in fresh contributions, with portfolios potentially much larger after years of growth.

No minimum contribution, no obligation to contribute regularly. You can open with EUR 10 and add over years. Note: the EUR 150,000 ceiling is reset only on closure — once you've put EUR 150,000 in, you cannot contribute more even if the portfolio drops in value.

The 5-year rule and tax treatment

The 5-year clock starts on the date of first deposit (not opening date). Before year 5, any partial withdrawal closes the PEA and triggers tax: capital gains taxed at PFU 30% (12.8% income tax + 17.2% social charges) on the gain since deposits.

From year 5 onward, partial or full withdrawals are tax-free at the income-tax level — only 17.2% social charges are due on the gains. The wrapper remains open, you can keep contributing up to the ceiling, and only the withdrawn portion is taxed. This is the moment the PEA becomes a uniquely powerful vehicle: a 6% gross annual yield compounds at the full 6% inside the wrapper, where a CTO erodes ~1.8 percentage points/year to taxes on dividends.

PEA vs Assurance Vie vs CTO

CTO (compte-titres ordinaire): no ceiling, fully flexible, but every euro of gain and dividend is taxed at PFU 30% each year (dividends) or upon sale (gains). Best for US individual stocks, options, leverage, exotic ETFs not PEA-eligible.

Assurance Vie: no ceiling, broader investment universe (fonds en euros, SCPIs, private equity, structured products), succession advantage with EUR 152,500 abattement per beneficiary. Tax: PFU 30% before 8 years, 24.7% after with EUR 4,600/9,200 allowance on gains withdrawn. Less efficient on pure equity than PEA after 5 years.

PEA: best on a buy-and-hold European/global ETF strategy beyond 5 years. EUR 100,000 invested in MSCI World synthetic PEA-eligible ETF at 7% over 20 years → ~EUR 387,000 gross. CTO version with annual 30% PFU on dividends + 30% on sale gains → ~EUR 352,000 net. The EUR 35,000 gap is pure PEA arbitrage.

Setting up and operating

Choose a low-cost broker: Fortuneo (EUR 0–5/order), BoursoBank (EUR 0.99–5), Bourse Direct (EUR 0.99–9.90), Trade Republic via partner. Avoid traditional bank PEAs — fees are often EUR 10–30/order plus annual custody fees of 0.4–0.6% that destroy long-term returns.

On opening, transfer the date of first deposit forward only if necessary — every day counts toward the 5-year rule. Many savers open a PEA with EUR 10 immediately upon their 18th birthday (or as soon as financially possible) just to start the clock, then begin contributing seriously years later.

Transferring a PEA between brokers

PEA transfers preserve the 5-year date — you do not lose your anteriority. Process: open at the new broker, request transfer with the formulaire de transfert, the old broker has 2 months to execute. Fees vary: EUR 0 at many fintechs to EUR 100+/line at traditional banks.

Common reasons to transfer: fees too high, lack of European ETFs, poor UX. Always transfer before crossing year 5 if you can — once in the tax-free zone, the cost-benefit of switching matters less.