Plan d’Épargne en Actions (PEA) is a tax-advantaged investment account available to residents of France. It’s designed to encourage long-term investment in French and European stocks while providing tax benefits.
Good to know
The capital gains and dividends from a PEA account are taxed depending on the date of withdrawal to your bank account.
So, Sale of stocks and ETFs inside the account is not a taxable event, as long as money is not withdrawn from the account.
Tax on Capital Gains from PEA
The taxation of the capital gains and dividends of a PEA depends on the exact date of the withdrawals from the account.
| Withdrawal Date | Income Tax & Social Charges |
| No Withdrawal | 0% Tax |
| 0 to 5 years | Capital gains and dividends will be taxed at 12.8% + 17.2% social charges. So, a flat tax (PFU) of 30%. However, you can opt for taxation according to your tax bracket by using line 2OP during tax declaration. This type of withdrawal will lead to the closure of the PEA account. |
| After 5 years | Capital gains and dividends will have only the 17.2% social charges, known as prélèvements sociaux (CSG, CRDS). So, you must wait until 5 years to start enjoying the tax benefits. |
Some Exceptions
The are a few exceptions to the cases listed above.
- Irrespective of the withdrawal date, capital gains from unlisted securities (titres non cotés) from a PEA account are exempt from taxes each year, up to 10% of the amount of these investments (i,e. the acquisition value of these securities).
- Withdrawals before 5 years are exempt from income tax in certain situations, such as: death of the account holder or allocation of PEA funds to finance the creation (or takeover) of an enterprise.
- Withdrawals before 5 years do not lead to PEA account closing, if you or your spouse (married or PACSed) are in one of the following situations: job termination (licenciement), disability (2nd or 3rd category) or retired.
Sources & References
- Brochure pratique 2024 de l’impôt sur le revenu impots.gouv.fr
- Plan d’épargne en actions (PEA) service-public.fr
- BOFIP-Impôts n°BOI-RPPM-RCM-40-50 relatif au plan d’épargne en actions (PEA) bofip.impots.gouv.fr
Disclaimer
- Any finance-related information shared is not professional legal, tax, or investment advice.
- The information provided is of an educational and general nature and is not investment advice within the meaning of Articles L. 321-1 and D. 321-1 of the French Monetary and Financial Code.
- Investment carries risks of loss and past performance does not guarantee future performance.
- For all professional advice, please consult a certified financial planner, CGP, CIF, tax consultant, etc.
