Securities and stock market
PEA (equity savings plan)
The European equity savings plan, exempt from income tax after five years.
Overview
The PEA suits savings invested in European equities for at least five years.
The PEA allows up to €150,000 to be invested in shares of companies from the European Union or the European Economic Area and in eligible funds. After five years, gains are exempt from income tax; social contributions, at 18.6% in 2026, remain due. Any withdrawal before five years closes the plan. Exit may be as capital or as a life annuity exempt from income tax.
How it works
Payment
Up to €150,000
Investment
Shares and index funds (ETFs)
Capital gain
Exempt from income tax after five years
Key points
Strengths
- Income tax exemption after five years
- Free choice of management (direct holdings or funds)
- Can be converted into an income-tax-free life annuity
Points to watch
- €150,000 ceiling (€300,000 for a couple with two plans)
- Universe limited to EU and EEA equities
- Any withdrawal before year five closes the plan
Who it is for
Anyone who accepts equity volatility over at least five to eight years and wants to hold part of it in the least-taxed wrapper. Each member of a couple can open their own plan. The PEA suits neither precautionary savings nor exposure outside Europe, which belongs in a securities account.
Worked illustration
Example based on assumptions
Assumptions: an investor aged thirty-five pays in €150,000 over five years; at fifty, the plan is worth €230,000. The €80,000 gain is exempt from income tax, saving €10,240 at the 12.8% rate. Social contributions of 18.6% in 2026 remain due, i.e. €14,880. The plan's value depends on the markets and is not guaranteed.
Regulatory information
This sheet is a general information document of a commercial nature. It constitutes neither personalised investment advice, nor a recommendation, nor a solicitation, and it is not a key information document. Any decision requires a prior analysis of your situation by a duly authorised professional. Investments carry a risk of capital loss. Past performance is no guide to future performance. Taxation depends on each person's situation and may change.
Risk of partial or total loss of capital. Equity markets experience sharp fluctuations, and smaller companies are less liquid. Bonds expose the holder to issuer default risk and to interest-rate risk: their value falls when rates rise. Recommended investment horizon: at least five to eight years.
Complaints and mediation
Any complaint may be sent to ASTERALE, 4 allée Django Reinhardt, 94110 Arcueil, France, or to sebastien.bailly@asterale.fr. Failing a satisfactory reply within two months, you may refer the matter to the competent mediator. For financial investment advice: the AMF Ombudsman (Médiateur de l'AMF), 17 place de la Bourse, 75082 Paris Cedex 02 (www.amf-france.org/fr/le-mediateur). For insurance broking and intermediation, banking and payment services intermediation and property transactions: ANM Conso, 2 rue de Colmar, 94300 Vincennes (www.anm-conso.com, contact@anmconso.com).
Information sheet updated on 6 October 2026. Download the sheet (PDF)
Book a meeting
The first meeting, of about an hour, is used to check whether this scheme has a place in your wealth.