CTO (standard brokerage account)
The CTO is a standard investment account with no cap or product restrictions. Capital gains are taxed at the 30% flat tax or progressive income tax rate.
The Compte-Titres Ordinaire (CTO) is the standard investment account available to all French savers, with no contribution cap, no product restrictions and no holding period constraints. In exchange, it receives no special tax treatment.
CTO taxation
Gains on a CTO (capital gains, dividends, interest) are subject to the flat tax (PFU) at 30% (12.8% income tax + 17.2% social charges). Investors can opt for the progressive income tax rate if more favourable (particularly for taxpayers in the 0% or 11% brackets).
CTO advantages
- No cap: ideal for large portfolios that have maxed out their PEA
- No product restrictions: physical global ETFs, bond ETFs, gold ETFs, active funds, international stocks
- Full liquidity: no delays or penalties for withdrawals
- Multi-currency: hold securities in USD, GBP, CHF, etc.
When to use a CTO instead of a PEA
- For physical global ETFs (IWDA, SWRD) or S&P 500 ETFs (SXR8) not PEA-eligible
- For bond, gold, commodities, infrastructure ETFs
- When the €150,000 PEA cap has been reached
- For USD-denominated ETFs or US stocks
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