(BFM Stock Exchange) – In partnership with XTB

The PEA (equity savings plan) is a regulated envelope which allows to invest mainly in shares or in equity funds, benefiting from certain tax advantages for French residents. It can be opened in a financial or online institution with a specialist broker like XTB, at no commission or account holding. Mechanisms, significant tax advantages, example and key figures, here is what you need to know about this investment.

PEA, an envelope created to stimulate stock market investment

For any investor wishing to diversify his savings, and to expose himself to listed markets, there are different envelopes, such as ordinary securities, or PEA*, the latter being the most attractive taxation.

Initially, the PEA was a French innovation created in 1992 to encourage the stock market investment of the French, structurally weak, especially with regard to the Americans. It therefore responds to a logic of mutual interests, to stimulate the economy via the growth of the floating capital of listed companies, and to develop the assets of the French.

One of the main characteristics of PEA is its investment world. Unlike an ordinary securities account, PEA can only be involved in actions of European companiesthat is to say having a seat in a state of the European Economic Area (EU + Iceland, Norway and Liechtenstein). The investment is intended in lively titles, but also in UCITS or TRACKER type indexed funds as soon as they are invested in PEA eligible titles.

The envelope is prized by investors wishing to diversify their assets, in a low return environment of traditional savings products. The rate of booklet A should indeed flank at 1.6% or 1.7% on August 1, if the government applies its spreadsheet to the letter…

PEA mechanisms and functioning

The PEA is made up of two parts:

1) On the one hand, a “species” or “liquidity” account on which the payments in cash are freely carried out (species, check or transfer), themselves intended for the purchase of funds or shares.

2) On the other hand, a “securities account” including the listed assets chosen and purchased by the saver.

To invest, simply buy shares or funds using the species account, without possible leverage. Listed assets can be sold, lightened, or reinforced at leisure. The list of eligible securities and funds, fixed by the legislator, is available online on the bank or broker website with which the plan is open.

Note: an incumbent can have only one banking PEA, which the latter cannot be “attached”, and that the total payments ceiling should not exceed € 150,000.

PEA and its unique tax advantages

Through the tax prism, two scenarios are available to you:

1) A withdrawal before the five years of the plan automatically leads to the fence of the PEA. The possible gain is imposed on the single flat -rate levy (PFU) of 30 %, decomposable into 12.8 % income tax and 17.2 % of social security contributions. It is the level of “flat tax”, which is not “penalizing” in itself since it is equivalent to the taxation of a capital gain on ordinary securities. But of course, the saver in this case does not take full advantage of the nature of the envelope. Note however that the exemption can be total in specific cases, such as death, dismissal or disability.

2) A withdrawal, partial or total is made after the 5th anniversary of the plan: the PEA is not automatically fenced. The global added value, applied to the plate formed by withdrawal, is then income tax exemptbut remains subject to social security contributions (17.2% CSG-CRDS). NB: The opening date of the plan is that of the 1st payment, and not that of the signing of the contract.

A concrete example: Alice’s PEA

Eager to “build” the performances of her portfolio, Alice, 37-year-old Marseillaise, opened her plan at XTB, one of the best PEA brokers on January 1, 2018. She “fueled” her PEA in liquidity up to € 400 monthly, as soon as the contract is opened, by regularly investing these sums in the title account. That is to say by judiciously buying funds, ETFs and actions eligible for the PEA. This directly on the mobile application of the XTB platform, without any commission on orders.

At 07/15/2025, the total payments amounts to € 36,400. Over the period, Alice’s wise investments have largely “outperformed” the Eurostoxx50 (+54 %), namely the reference stock market index in Europe. The total amount of the PEA is then worth € 62,244. Thus, Alice won 62,244 – 36,400 = € 25,844, or A global net capital gain of 71 %. This gain is simply the difference between the overall value of the PEA on 15/07 and all the payments made since the opening.

Alice decides to withdraw money from her PEA (€ 20,000) on 07/15/2025, to finance the contribution of a mortgage. The PEA is in good added value, and the gains are subject only to the social security contributions of 17.2 %, the withdrawal having been made after 5 years. A rule of three then makes it possible to apply the taxation to the only withdrawal of € 20,000: the “gains part” on these only € 20,000 is € 41.52% = 25,844/62,244. Or € 8,304 in taxable gains at 17.2%, that is to say € 1,428.

The PEA XTB remains open and active, and Alice intends to continue to feed it, and to invest in the financial markets!

Sources: Service-public.fr, Banque de France, Autorité des Marchés Financiers, Official Bulletin for Public Finances and Economy.gouv.fr

*Banking pea outside PEA assurances and PEA-PME.

The editorial staff of News Bulletin 247 did not participate in the realization of this content in partnership with XTB.