PEA (Plan d'Épargne en Actions)
The PEA is a French tax-advantaged account allowing ETF investment with capital gains tax exemption after 5 years. Cap: €150,000 per person.
The Plan d'Épargne en Actions (PEA) is the most tax-advantaged account available to French retail investors for equity exposure. Created in 1992, the PEA allows investing in European equities and ETFs with greatly reduced taxation: after 5 years of holding, only social charges (17.2% in 2026) apply on capital gains and dividends, versus a 30% flat tax outside the PEA.
The 5-year rule
The 5-year holding period runs from the account opening date, not the investment date. It is therefore advisable to open a PEA as early as possible, even with a small initial deposit, to start the tax clock. Before 5 years, any withdrawal automatically closes the plan.
Caps and contribution rules
- Standard PEA cap: €150,000 in contributions (gains do not count toward the cap)
- Complementary PEA-PME cap: €75,000, totalling €225,000
- One PEA per adult person
- Two PEAs per tax household (one per spouse)
Which ETFs are PEA-eligible?
- Physical ETFs on global indices (MSCI World, S&P 500): NOT eligible
- Synthetic ETFs on global indices (CW8, WPEA, EWLD): eligible via European physical basket
- Physical ETFs on European indices (CAC 40, Eurostoxx 50): eligible
- Bond ETFs: NOT eligible (PEA can only hold equities)
Check your ETF overlap
Enter two tickers to instantly see their overlap and avoid duplicates in your portfolio.
Open simulator