Home / Resources / Simulators / PEA
Free simulator
PEA simulator: capital, capital gain and tax exemption after 5 years
The PEA is the wrapper dedicated to European equities over the long term, and yet it is under-used by those who make do with a standard securities account taxed at 31.4%. What most people do not know: after 5 years of holding, capital gains are fully exempt from income tax — only the 18.6% social charges remain payable.
On capital gains after 5 years, only the 18.6% social charges remain
On contributions, combinable with the PEA-PME within an overall limit of €225,000
No tax and no social charges as long as you withdraw nothing
The simulator
Simulate your PEA
The projection compares taxation before and after the 5-year mark. Your data is neither stored nor shared.
PEA simulator
Project the value of your equity savings plan (PEA) and the income tax exemption after 5 years.
Indicative calculation, based on 2026 rules and the assumptions entered above.
Why
Why the PEA changes the taxation of your shares
Many savers invest in equities through a standard securities account, where gains are taxed at the 31.4% flat tax (PFU) from the first euro withdrawn. The PEA, by contrast, radically changes the long-term tax equation, yet remains under-used: opened late, under-funded, or dropped in favour of more visible products. That is an allocation error, because no other wrapper combines equity exposure with an income tax exemption.
The mechanism rests on two engines. First, the tax-free capitalisation : as long as you withdraw nothing, dividends and gains are reinvested with no tax at all — neither income tax nor social charges. Tax only arises on withdrawal. Second, the 5-year mark, which fully exempts capital gains from income tax.
Over a long horizon, the gap with an ordinary securities account is considerable. With identical performance, the PEA keeps the income tax that would have cut into each withdrawal, and reinvests it. It is precisely this difference, compounded year after year, that this simulator brings out.
What the calculation shows
The 3 PEA levers your bank adviser rarely optimises
Before 5 years, a withdrawal is taxed at the 31.4% flat tax (PFU) and in principle closes the plan. After 5 years, everything changes: withdrawals are free, the plan stays open, and capital gains escape fully exempt from income tax — only the 18.6% social charges apply. Hence a golden rule too often overlooked: you need to “start the clock” early, even with a small payment, to set the 5-year count running. A plan opened at 30 with €500 will already be mature when one opened at 40 is just getting started.
Within the PEA, you can sell one holding and buy another with no tax at all : no income tax and no social charges are due as long as the money stays in the plan. In a securities account, every profitable switch triggers 31.4% tax that eats into the reinvested capital. This tax-free treatment of switches lets you steer your allocation actively — locking in gains, rotating into other sectors — without the tax drag that silently erodes the performance of a standard account.
In principle, the PEA only accepts shares in European companies and funds invested at least 75% in European Union equities. Many wrongly conclude that it locks you into the European market. In reality, many synthetic-replication “PEA-eligible” ETFs provide indirect exposure to global markets — the United States, emerging markets — while still meeting the eligibility rule. It is the lever that turns the PEA from a “Franco-European” wrapper into a genuine tool for tax-free global exposure, and it remains little known.
Case study
Case study: Camille, 34, self-employed doctor in Lyon
Camille opens a PEA (French equity savings plan) with €20,000 and contributes €500 per month for 15 years to a PEA-eligible global ETF targeting a net return of 4.5% (%) after fees. Here's what the simulator projects, compared to the same investment held in a standard securities account taxed at 31.4% (%):
| Indicator | Standard securities account (flat tax 31.4%) | PEA after 5 years | Difference |
|---|---|---|---|
| Projected capital after 15 years | ≈ €168,000 | ≈ €168,000 | — |
| Total paid in | ≈ €110,000 | ≈ €110,000 | — |
| Capital gain | ≈ €58,000 | ≈ €58,000 | — |
| Tax on a full withdrawal | ≈ €18,200 (31.4 %) | ≈ €10,790 (18.6% social charges) | ≈ €7,400 saved |
With strictly identical contributions and performance, Camille keeps nearly €7,400 more by using the PEA rather than a securities account: the 12.8% income tax that would hit her capital gain is simply wiped out after 5 years. Only the 18.6% social charges remain.
The lesson is simple: for long-term equity exposure, the choice of wrapper matters as much as the choice of stocks. Having “started the clock” young, even with a small payment, lets Camille benefit from the exemption well before colleagues who open their plan later.
In practice
The wrapper removes the tax; the allocation drives the performance
This simulator quantifies the tax gap between a PEA and an ordinary securities account. But the wrapper is not everything: the real value is created in the allocation — choosing between self-directed and managed portfolios, selecting eligible ETFs that genuinely diversify, calibrating risk to your horizon, and coordinating the PEA with your assurance-vie, your PER and any PEA-PME. A well-funded but poorly invested PEA is still an underperforming PEA.
Balmont Conseil is a wealth management advisory firm based in Lyon, a member of ANACOFI-CIF, with no capital ties to any bank. Open architecture allows us to select investment options from among our partners and to build an allocation aligned with your interest, without pushing a network's in-house funds. Let's book an appointment to structure or optimise your PEA within a coherent wealth strategy.
Frequently asked questions
What clients ask us.
When does the PEA become tax-advantageous?
From day one, the plan compounds with no tax at all: dividends and gains are reinvested tax-free as long as you withdraw nothing. The decisive advantage kicks in after 5 years of holding: capital gains are then fully exempt from income tax, with only the 18.6% social charges still payable. Before 5 years, a withdrawal is taxed at the 31.4% flat tax (PFU) and in principle closes the plan. Hence the value of ‘starting the clock’ early, even with a modest payment.
What is the PEA ceiling?
The contribution ceiling for a standard PEA is €150,000. It can be combined with a PEA-PME, but the total remains subject to an overall limit of €225,000 in contributions. Note: this ceiling applies to contributions, not to the value of the plan — so your PEA can grow well beyond €150,000 in value through gains without any problem.
What can be held in a PEA?
The PEA accepts shares in European companies and funds (UCITS, ETFs) invested at least 75% in European Union equities. Many “PEA-eligible” ETFs nevertheless provide indirect exposure to global markets — the United States, emerging markets — while meeting the eligibility rule. That is what turns the PEA into a tool for tax-free international exposure, rather than a mere Franco-European wrapper.
Is a PEA better than an ordinary securities account?
Over the long term and for eligible equities, yes, unambiguously. A standard securities account taxes capital gains at the 31.4% flat tax (PFU) from the first euro withdrawn. After 5 years, the PEA fully exempts the capital gain from income tax (12.8%), leaving only the 18.6% social charges. With identical performance, the saving compounded year after year is substantial. The securities account remains useful for securities not eligible for the PEA or above the ceiling.
How does Balmont Conseil differ from a bank adviser for my PEA?
Balmont Conseil is a wealth management advisory firm based in Lyon, a member of ANACOFI-CIF, with no capital ties to any bank. A bank adviser will readily steer your PEA towards funds managed by their group, which often carry higher fees. We work on an open-architecture basis: ETFs and funds are selected from among our partners according to the client's interest, and your PEA is aligned with your other wrappers (assurance-vie, PER, PEA-PME) within an overall strategy.
