PEA Simulator: French Stock Savings Plan

Simulate your PEA: €150,000 contribution ceiling, taxation before/after 5 years, CTO comparison and net capital projection.

PEA Parameters

Initial PEA capital

Monthly contribution

PEA contribution ceiling: 150 000 €

Duration (years)

Expected return (%)

Marginal tax bracket (TMI)

Used to compare with the progressive scale option on a standard brokerage account

Net capital after tax

58 681 €

after 15 years · 7 % annual return

Total contributed

36 000 €

Capital gains

+27 392 €

Taxation

-4 712 €

PS 4 712 €

Advantage vs CTO

+3 506 €

vs 30% flat tax

PEA projection

Tax summary

After 5 years (mature PEA)17,2 % (PS)

Tax on gains (27 392 €)-4 712 €

Savings vs CTO (flat tax)+3 506 €

Savings vs progressive scale (30% + PS)+8 218 €

What is the PEA (Plan d'Épargne en Actions)?

The Plan d'Épargne en Actions (PEA) is a French tax-advantaged account for investing in European equities. After 5 years, only social charges (17.2%) apply on gains. The contribution ceiling is €150,000 (€225,000 with a PEA-PME).

Standard PEA

€150,000 ceiling. European stocks, UCITS, eligible ETFs. Opened at a bank or broker.

PEA-PME

€225,000 ceiling (combined with PEA). Reserved for European SMEs and mid-caps.

Youth PEA

For 18-25 year-olds in their parents' household. €20,000 ceiling, converted to standard PEA upon leaving.

PEA taxation: before and after 5 years

The main advantage of the PEA is its reduced taxation after 5 years. Before that, any withdrawal triggers account closure and gains are taxed at 30% (flat tax). After 5 years, only social charges (17.2%) apply on capital gains.

Before 5 years

30% (flat tax)

12.8% income tax + 17.2% social charges: withdrawal = PEA closure

After 5 years

17.2% (social charges only)

Income tax exempt: partial withdrawals possible without closure

CTO (comparison)

30% (flat tax)

Flat tax on each capital gain, no contribution ceiling

CTO progressive scale

TMI + 17.2%

Optional: advantageous if TMI < 12.8% (0% or 11% bracket)

PEA contribution ceilings

The ceiling applies only to contributions (capital can exceed the ceiling through gains). After 5 years, partial withdrawals no longer trigger account closure.

Standard PEA

€150,000 maximum contributions

EU stocks, eligible ETFs, equity UCITS. Capital can exceed €150,000 through gains.

PEA + PEA-PME (combined)

€225,000 maximum contributions (combined)

The PEA-PME adds €75,000 of ceiling for investing in European SMEs/mid-caps.

Frequently asked questions about the PEA

Can you withdraw from the PEA before 5 years?▼

Yes, but any withdrawal before 5 years triggers PEA closure and gains are taxed at 30% (flat tax). Exceptions: job loss, disability, early retirement or business creation. After 5 years, partial withdrawals are possible without closure.

PEA or life insurance: which to choose?▼

The PEA is optimal for long-term European equity investing thanks to its reduced taxation (17.2% after 5 years). Life insurance offers more diversification (euro funds, real estate, bonds) and inheritance benefits. Both are complementary.

What happens if the PEA exceeds €150,000?▼

The €150,000 ceiling only applies to contributions. Your capital can far exceed this amount through gains and dividends. You simply cannot make new contributions once the ceiling is reached.

What investments are PEA-eligible?▼

Shares of companies headquartered in the EU/EEA, PEA-eligible ETFs (trackers) replicating global indices, UCITS invested 75%+ in European equities. Direct US stocks (Apple, Google) are not eligible, but PEA ETFs replicating the S&P 500 are.