PEA in France: everything you need to know about the equity savings plan in 2026
Updated on 20 July 2026
The PEA (a French tax-advantaged equity savings account) is a tax wrapper available in France that lets you invest in European shares and certain ETFs, with an income tax exemption after 5 years of holding. This guide explains how it works, its caps, its fees and its taxation.
- The contribution cap is €150,000 for a standard PEA, or €225,000 when combined with a PEA PME.
- Gains remain exempt from income tax after 5 years, but are subject to social security levies of 18.6% since 1 January 2026.
- Only shares in European companies (or ETFs made up of at least 75% European equities) are eligible for a PEA.
- The PEA jeune (for 18 to 25-year-olds still attached to their parents' tax household) allows contributions of up to €20,000.
- Any withdrawal before 5 years generally closes the plan, except on legitimate grounds (redundancy, disability, starting a business).
What is the PEA (Plan d'Épargne en Actions)?
The PEA (Plan d'Épargne en Actions) is a tax wrapper that lets you invest in European shares while enjoying an income tax exemption after 5 years. It is also one of the French public's favourite wealth management tools. The term usually refers to the bank PEA, but there are other PEAs that work in much the same way:
- the PEA PME, to build a portfolio of shares in European SMEs
- the PEA jeune, for people aged between 18 and 25
- the PEA assurance, opened with an insurance company
The standard bank PEA
The bank PEA is by far the most common. Opened with a bank, it lets you buy shares in European companies or funds such as ETFs made up of at least 75% European equities, within a specific tax framework.
The contribution cap on a bank PEA is set at €150,000. In practice, however, its value can exceed €150,000 because of the appreciation of the assets held inside it.
The PEA assurance
The PEA assurance is similar in many respects to the bank PEA, except that it is opened with an insurance company. That brings a few practical differences: most often insurers offer baskets of shares (investment funds) where a bank PEA tends to be used to buy individual securities (shares in listed companies). If you are wondering where to invest your money, both will do the job.
In any case, whether in terms of taxation or operating rules, the PEA assurance is similar to the bank PEA.
The PEA jeune (youth PEA)
Introduced by the French PACTE law in May 2019, the PEA jeune is an equity savings plan for people aged 18 to 25 who are still attached to their parents' tax household. A tax household cannot hold more than 2 standard PEAs, which otherwise prevents children who are tax dependants from opening one.
The PEA jeune answers that problem with a tax wrapper that lets you invest in the stock market, similar to the standard PEA but with a contribution cap reduced to €20,000.
The PEA PME
The PEA PME is the counterpart of the standard PEA, dedicated to the holding of shares in European SMEs (small and medium-sized enterprises) and micro-enterprises. It is therefore built for taking risk, not for parking your emergency fund. It works and is taxed in the same way as the standard PEA.
The only difference lies in its contribution cap, limited to €75,000 for the PEA PME, bearing in mind that nothing prevents you from holding SME shares in a standard PEA. In other words, the overall contribution cap for buying shares in European SMEs is €225,000.
Good to know: You can combine a PEA PME and a standard PEA, provided you respect a total contribution cap of €225,000. The PEA PME suits certain private equity operations, notably in start-ups (but not through BSPCE (Bons de Souscription de Parts de Créateur d'Entreprise, French founder share warrants)) or to hold the shares of a company you have just set up. How does the PEA work?
Whether PME, jeune or assurance, the equity savings plan works like a securities portfolio in which the saver can choose to hold whatever shares or fund units they like (provided the eligibility criteria are met). The main tax benefit of the PEA is acquired from the 5th year of holding. Withdrawal conditions are also regulated, so that any withdrawal before the 5th year of holding closes the PEA.
The PEA is therefore a medium to long-term savings solution.
PEA cash account and PEA securities account: can you switch holdings inside a PEA?
You can indeed switch holdings inside a PEA (that is, buy and sell securities). The PEA is made up of two compartments:
- a PEA cash account holding the saver's cash
- the “securities portfolio” account holding the securities owned by the saver.
You can therefore decide to sell some shares to buy others, routing the cash through your PEA cash account without closing the plan or triggering tax on any capital gains and dividends.
How is the PEA taxed?
On tax, the PEA offers favourable treatment subject to how long you hold it. Two key timeframes matter:
- withdrawals made before 5 years: capital gains and dividends are subject to the flat tax (PFU) of 31.4% (12.8% income tax + 18.6% social security levies), unless you opt for the progressive income tax scale
- withdrawals made after 5 years: the capital gains and dividends received are exempt from income tax. According to service-public.fr, they remain subject to social security levies, whose rate rose from 17.2% to 18.6% on 1 January 2026 (an increase in the CSG, France's general social-security contribution), applying at the rate in force at the time of the withdrawal.
Note that as long as you make no cash withdrawal from your PEA to your current account (for example), you have no tax to pay.
Good to know: The 5-year tax clock starts on the date the PEA is opened. From the 5th year, gains are exempt from income tax (excluding social security levies, currently 18.6%). Whether opening a PEA makes sense depends on your personal situation; a conversation with a wealth management adviser can help you decide. What fees apply to a PEA?
PEA fees come in several forms and vary with the institution the plan is opened with. To help you compare PEAs, here is a list of the fees you may face.
| PEA fee | Estimated amount | Comment |
|---|---|---|
| Account opening fees | €10 maximum | Since July 2020, these fees have been capped. They correspond to opening the PEA. |
| Brokerage fees | 0.5% to 1.2% | Brokerage fees are the commission charged on a transaction carried out inside the PEA. |
| Management fees (custody fees) | 0.4% maximum of the value of the securities held | A surcharge of €5 per line of securities held may be applied, or €25 if the security is not admitted to trading on a regulated market. |
| Transfer and closure fees | €150 maximum | Transferring or closing the plan may incur fees, capped at €150. |
Note that since 1 July 2020, PEA fees have been capped by law (decree no. 2020-95). As an order of magnitude, on €1,000 invested in listed shares through a PEA, your bank or insurer may charge you up to €9 in annual fees (excluding brokerage and transfer/closure fees).
For a detailed comparison of the fees charged by the various institutions, see our guide to PEA fees.
Which financial products can you hold in a PEA?
The PEA is not an investment as such, but a tax wrapper in which to put your money. Select your investments in line with your risk profile and your investment horizon. Although the choice of PEA assets is restricted to European shares alone, you still have plenty of investment options.
Shares in European companies
Most of the time, a PEA is used to buy CAC 40 or EURO STOXX 50 shares, in other words listed shares in large European companies ("large caps"). These securities generally enjoy good liquidity thanks to trading volumes. Diversifying across European large caps over a horizon longer than 5 years can help smooth volatility, without removing the risk of capital loss.
Goals
PEA-eligible ETFs
If you would rather not buy individual securities, and want stronger diversification while keeping management fees low, you can turn to ETFs (or trackers). Indeed, many ETFs are PEA-eligible, largely thanks to synthetic replication.
The method has the ETF manager buy a pool of PEA-eligible assets (75% European equities), then enter into a swap with a counterparty (a bank, for example) to exchange the performance of the shares held for that of another basket of assets, which need not be made up of European equities. In other words, with ETFs, you can gain indirect exposure, within the PEA's legal framework, to indices or assets that are not strictly made up of European equities.
As a result, many ETFs can be PEA-eligible, notably:
- S&P 500 ETFs with the Amundi PEA S&P 500 UCITS ETF Acc (FR0011871128), formerly Lyxor
- Real estate ETFs with, for example, the FTSE EPRA/NAREIT Europe tracker
- World ETFs with, for example, the Amundi MSCI World UCITS ETF - EUR (D) (EWLD), which absorbed the former Lyxor PEA Monde (MSCI World) on 15/03/2024
- Commodity ETFs with, for example, the Amundi STOXX Europe 600 Energy ESG Screened UCITS ETF (ENRGA), formerly Lyxor Stoxx Europe 600 Oil & Gas
- Bond ETFs with, for example, the Amundi PEA Obligations d'État Euro UCITS ETF Acc (OBLI, FR0013346681), formerly Lyxor
If you are looking for eligible ETFs, you can also read our selection of PEA-eligible ETFs.
Start-up and SME shares with the PEA PME
If you plan to carry out private equity deals, fund start-ups or grow your own company, the PEA PME can complement a standard PEA. With its dedicated €75,000 cap, it raises the overall contribution ceiling to €225,000.
SME and start-up shares carry upside potential but also a high risk of capital loss and illiquidity. The income tax exemption after 5 years is a tax advantage, subject to meeting the regulatory conditions.
How does the PEA fit into a wealth strategy?
Because it is in principle used only to hold European shares, the PEA cannot on its own be the single tax wrapper for your financial assets. Its narrow range of eligible securities does not deliver enough geographical diversification. Shares also remain assets regarded as risky, so a long holding period is generally considered appropriate to soften the effects of volatility, with no guaranteed outcome.
The PEA therefore often sits alongside a euro fund life insurance policy, to modulate the risk of your financial assets. The share of the euro fund varies with your risk aversion and your investment horizon.
That said, the spread of PEA-eligible ETFs gives access to a wider range of assets and therefore to sufficient diversification. From real estate to bonds, you can build a dynamic portfolio by buying a broad range of synthetic ETFs.
Frequently asked questions
How much does a PEA earn?
The PEA (Plan d'Épargne en Actions) is not an investment as such, but a tax wrapper used mainly to invest in European shares. PEA returns therefore depend on the performance of the shares held. As an indication, the CAC 40 has delivered an average annualised return of about 10.7% over the last 15 years, dividends reinvested, but that figure varies widely with the period and the securities held. Past performance is not a reliable indicator of future performance.
What are the advantages of the PEA?
The advantages of the PEA are mostly tax-related. From the 5th year, the income generated by the securities held is exempt from income tax. You will still owe social security levies, whose rate rose to 18.6% on 1 January 2026.
How do you open a PEA?
To open a PEA, you can approach a bank or an insurance company. Fees vary noticeably from one institution to another (brokerage, custody, transfer): compare the pricing terms before opening. Some providers offer low-fee PEAs.
What happens if you withdraw before 5 years?
A withdrawal before 5 years generally closes the PEA for good and taxes the gains at the flat tax (PFU) of 31.4%. Exceptions exist for redundancy, disability, early retirement or the creation/takeover of a business, which allow a withdrawal without closing the plan.
Can you have several PEAs?
A taxpayer can hold only one standard PEA (two per tax household, one per spouse). You can, however, combine a standard PEA with a PEA PME, up to an overall contribution cap of €225,000.
Sources
Service-public.fr: equity savings plan (PEA)
Service-public.fr: social security levies on capital income
Legifiscal.fr: CSG increase on 1 January 2026
Légifrance: Decree no. 2020-95 of 5 February 2020 on the capping of PEA fees
Légifrance: French Monetary and Financial Code, article D221-113-5 (PEA eligibility)
Curvo: historical performance of the CAC 40
AMF: CASP white list, Finary SAS
Regulatory disclaimers: Marketing communication. Investing carries a risk of partial or total capital loss. Past performance is not a reliable indicator of future performance. This article is provided for information and educational purposes only; it does not constitute personalised investment advice, a buy or sell recommendation, or tax advice. Before investing, read the Key Information Document (KID) and, where relevant, consult an authorised adviser. Finary SAS, an investment firm authorised by the ACPR (no. 19283), member of AMAFI. Insurance broker registered with ORIAS (no. 21001279), member of the CNCGP (association approved by the AMF). Crypto-Asset Service Provider (CASP, “PSCA” in French) authorised by the AMF under the MiCA regime, references no. A2026-026 and no. N2026-008.
