1What is the PEA?
The Plan d'Épargne en Actions (PEA) is a tax wrapper created by the French state to encourage private individuals to invest in European companies. It is one of the most tax-efficient ways to invest in the stock market in France.
In short
The PEA lets you invest up to EUR 150,000 in shares and ETFs, with a full exemption from income tax after 5 years of holding. You only pay the social levies of 17.2%.
The key features
Advantages
- • No income tax after 5 years
- • Generous ceiling of EUR 150,000
- • Partial withdrawals allowed after 5 years
- • Access to global ETFs through replication
- • Dividends reinvested free of tax
Constraints
- • One PEA per person only
- • Withdrawing before 5 years = closure + tax
- • Direct holdings limited to European shares
- • No short selling
- • No crypto assets
Who can open a PEA?
Any adult who is a French tax resident can open a PEA. People still attached to a parent's tax household can open a PEA Jeune from the age of 18.
- One PEA per taxpayer
- Two PEAs maximum per tax household (one per spouse)
- Can be combined with a PEA-PME
2The PEA's favourable tax treatment
The tax treatment of the PEA is its main strength. It changes with how long you hold the plan and becomes very attractive after 5 years.
| Holding period | Income tax | Social levies | Total |
|---|---|---|---|
| Less than 5 years | 12.8% | 17.2% | 30% |
| More than 5 years | 0% | 17.2% | 17.2% |
Beware of withdrawals before 5 years
Any withdrawal before the 5-year mark triggers the automatic closure of the PEA and taxes the gains at 30%. Only redundancy, disability or starting a business allow a withdrawal without closing the plan.
Worked example: tax savings with a PEA
Imagine an investment of EUR 50,000 showing a EUR 30,000 gain after 10 years:
In a securities account (CTO)
-€9,000 in tax
30% × €30,000
In a PEA (after 5 years)
-€5,160 in tax
17.2% × €30,000
Saving: €3,840 thanks to the PEA!
3The different types of PEA
Standard PEA (bank or insurance version)
The standard plan for investing in European shares and ETFs. Ceiling of EUR 150,000.
Bank PEA
- ✓ Wide choice of securities
- ✓ Generally lower fees
- ✓ Self-directed management
Insurance PEA
- ✓ Easier estate transfer
- ✓ Life annuity option available
- ✗ Higher fees
PEA-PME
Dedicated to European small and mid-sized companies. Ceiling of EUR 225,000, which can be held alongside a standard PEA.
- ✓ An extra EUR 75,000 of headroom (if the standard PEA is already full)
- ✓ The same favourable tax treatment
- ✗ A narrower investment universe
- ✗ Liquidity is sometimes limited
PEA Jeune
For 18 to 25 year olds still attached to their parents' tax household. Ceiling of EUR 20,000.
- ✓ A first step into the stock market from age 18
- ✓ Converts into a standard PEA at 25
- ✓ The tax seniority is preserved!
- ✗ Ceiling capped at EUR 20,000
4The best PEA brokers of 2026 compared
Choosing the right broker is crucial to keeping costs down over the long run. Here is our pick of the best brokers for opening a PEA in 2026.
| Broker | Order fee | Custody fees | Account opening | Rating |
|---|---|---|---|---|
| Bourse Direct | €0.99 | €0 | Free | 5/5 |
| Fortuneo | €1.95 | €0 | Free | 5/5 |
| Boursorama | €1.99 | €0 | Free | 4/5 |
| Trade Republic | €1 | €0 | Free | 4/5 |
| Saxo | €2 | €0 | Free | 4/5 |
Our recommendation
For a long-term PEA funded by regular contributions, Bourse Direct and Fortuneo offer the best value for money, with very competitive fees and reliable service.
5The best PEA-eligible ETFs
Thanks to synthetic replication, you can invest all over the world through your PEA. Here is our pick of the ETFs worth knowing.
| ETF | ISIN | Fees | Assets | Region |
|---|---|---|---|---|
| Amundi MSCI World | LU1681043599 | 0.38% | €3.5bn | World |
| Lyxor CAC 40 | FR0007052782 | 0.25% | €4.2bn | France |
| Amundi Euro Stoxx 50 | LU1681047236 | 0.20% | €2.1bn | Europe |
| BNP Paribas Easy S&P 500 | FR0011550185 | 0.15% | €1.8bn | USA |
| Amundi MSCI Emerging Markets | LU1681045370 | 0.20% | €1.2bn | Emerging |
A simple, effective strategy
For most investors, a single ETF is enough:
100% Amundi MSCI World (CW8)
Exposure to 1,600 companies across 23 developed countries. Maximum diversification in a single purchase.
6PEA investment strategy
DCA: investing regularly
The most widely recommended approach: invest the same amount every month, whatever the markets are doing.
A DCA example inside a PEA
Monthly investment
€200
Time horizon
20 years
Estimated capital (7% a year)
~€104,000
Recommended allocation by profile
A World ETF on its own. The long horizon absorbs the volatility.
Start securing part of the money in the euro fund of a life insurance policy.
Gradually reduce your equity exposure to lock in the gains.
7Mistakes to avoid with your PEA
Withdrawing before 5 years
You lose every tax benefit and your PEA is closed. Be patient!
Holding too many positions
Too much diversification defeats the purpose. One or two ETFs are more than enough.
Waiting for the "right moment"
Market timing does not work. Invest regularly and stop second-guessing yourself.
Overlooking fees
Choose a broker with low fees. An extra 0.5% a year means thousands of euros lost.
Panicking when markets fall
Crashes are buying opportunities. Never sell in a panic.
8Frequently asked questions about the PEA
Can I invest in US shares through my PEA?
Not directly, but yes through synthetic replication ETFs. The Amundi S&P 500 ETF and the MSCI World let you invest in the US from inside your PEA.
What happens if I go over the EUR 150,000 ceiling?
The ceiling applies only to contributions, not to capital gains. If your EUR 150,000 grows into EUR 300,000, that is not a problem. You simply cannot pay in any more money.
Can I transfer my PEA to another broker?
Yes, transferring a PEA is a legal right and it preserves your tax seniority. The new broker may even refund the transfer fees (around EUR 150).
Should I open a PEA as early as possible?
Absolutely. The tax clock starts the day the plan is opened, even with EUR 10 in it. Open your PEA as soon as you can, even if you only start investing later.
What happens to my PEA when I die?
The PEA is closed and the securities pass to the heirs. The capital gains are exempt from income tax but inheritance duties still apply.
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