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PEA-PME simulator: investing in SMEs and mid-caps with lighter taxation
The PEA-PME applies exactly the same tax rules as the standard PEA — income tax exemption on capital gains after 5 years, 18.6% social charges still due — but targets the financing of European SMEs and mid-caps. What most people don't know: its €225,000 ceiling can be combined with the PEA, within an overall limit of €225,000.
Income tax exemption after 5 years, 18.6% social charges still due
Can be combined with the PEA within an overall limit of €225,000 of contributions
Listed or unlisted, plus crowdfunding instruments (bonds, participating securities, minibonds)
The simulator
Simulate your PEA-PME
The projection applies PEA taxation (income tax exemption after 5 years). Your data is neither stored nor transmitted.
PEA-PME simulator
Project your PEA-PME, dedicated to financing SMEs and mid-sized companies, and its tax exemption after 5 years.
Indicative calculation, based on 2026 rules and the assumptions entered above.
Why
Why the PEA-PME complements, rather than replaces, the standard PEA
The PEA-PME remains the least-known wrapper in the equity family, because it is aimed at a narrower audience: those who have already filled, or want to supplement, their standard PEA, and who accept a more pronounced risk profile in exchange for exposure to European SMEs and mid-sized companies. It is not a first-reflex wrapper, but a diversification building block for wealth that is already established.
Its taxation is strictly identical to that of the PEA : tax-free capitalisation as long as nothing is withdrawn, income tax exemption on capital gains after 5 years, and 18.6% social charges still due. The difference lies not in taxation but in the investment universe: listed or unlisted SMEs and mid-caps, and crowdfunding instruments.
The PEA-PME does indeed hold shares in SMEs and mid-sized companies, but also bonds, participating securities and minibonds — making it a tool for diversifying into the real economy, more volatile and less liquid than large caps. It is precisely this profile that warrants approaching it as a complement, and with discernment.
What the calculation shows
The 3 levers of a well-run PEA-PME diversification
The PEA-PME offers a contribution ceiling of €225,000, which can be combined with the standard PEA's ceiling within an overall limit of €225,000. The tax treatment is identical: income tax exemption on capital gains after 5 years, 18.6% social charges still due. For an investor who has already maxed out their PEA, it is a chance to extend a tax-advantaged savings pot — provided they accept the higher risk profile of SMEs and mid-caps. The 5-year mark is also assessed separately for each plan: here too, opening the PEA-PME early starts the clock.
Whereas the standard PEA focuses on large caps, the PEA-PME opens access to SMEs and mid-sized companies both listed and unlisted, as well as crowdfunding instruments: bonds, participating securities, minibonds. This is direct exposure to the real economy, to growth companies, with higher performance potential but greater volatility and illiquidity. This “venture capital” share of the allocation must be calibrated with care — it only makes sense alongside a core of more liquid assets.
The usual strategy is to fill the standard PEA first — more liquid, more easily diversified through ETFs — then to open a PEA-PME for the “venture capital” share of the allocation. The two ceilings are combined, but the overall limit of €225,000 of contributions forces a trade-off: every euro placed in the PEA-PME reduces by the same amount the capacity of the standard PEA beyond this common ceiling. The selection of SME and mid-cap investments and the risk/liquidity balance are best framed with an adviser, as this segment is markedly more volatile and less liquid than large caps.
Case study
Case study: Thomas, 45, senior tech executive in Paris
Thomas has already largely filled his standard PEA and wants to diversify into the real economy. He opens a PEA-PME with €20,000 and pays in €300 a month for 10 years, into a selection of SME and mid-cap funds targeting 6% net (with higher risk). Here is what the simulator projects, compared with an ordinary securities account:
| Indicator | Standard securities account (flat tax 31.4%) | PEA-PME after 5 years | Difference |
|---|---|---|---|
| Projected capital after 10 years | ≈ €84,000 | ≈ €84,000 | — |
| Total paid in | ≈ €56,000 | ≈ €56,000 | — |
| Capital gain | ≈ €28,000 | ≈ €28,000 | — |
| Tax on a full withdrawal | ≈ €8,790 (31.4 %) | ≈ €5,210 (18.6% social charges) | ≈ €3,580 saved |
With identical contributions and performance, Thomas saves nearly €3,580 in tax by holding his SME and mid-cap allocation in a PEA-PME rather than a securities account: the 12.8% income tax on the capital gain disappears after 5 years, leaving only the 18.6% social charges.
But the figure does not tell the whole story: the 6% performance assumed here implies a markedly higher risk than a global equity ETF, and lower liquidity. The PEA-PME only makes sense as a complement to an established core, and its share of the allocation must be calibrated with discernment — this is where an adviser's framing comes into its own.
In practice
Diversification is no substitute for discernment
This simulator costs the PEA-PME's tax advantage, identical to that of the PEA. But the real question is not about tax: it is about the place this SME and mid-cap pocket, more volatile and less liquid, should take in your overall allocation. Poorly dosed, the PEA-PME adds risk without controlled return; well integrated, it extends your tax-free savings into the real economy and the growth potential of unlisted companies.
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 SME and mid-cap (PME-ETI) investment options from among our partners and to calibrate their weighting in your allocation, according to your interest and your risk tolerance. Let's book an appointment to fit the PEA-PME into a coherent overall strategy.
Frequently asked questions
What clients ask us.
What is the tax difference between the PEA and the PEA-PME?
None. The PEA-PME follows exactly the same tax rules as the standard PEA: tax-free capitalisation as long as nothing is withdrawn, income tax exemption on capital gains after 5 years, and 18.6% social charges still due. The only difference lies in the investment universe: the PEA-PME targets European SMEs and mid-caps and certain crowdfunding instruments, whereas the standard PEA focuses on European Union equities and equity funds.
What is the PEA-PME ceiling, and can it be combined with the PEA?
The PEA-PME offers a contribution ceiling of €225,000. It can be combined with the standard PEA, but the whole remains subject to an overall limit of €225,000 of contributions. In other words, every euro paid into the PEA-PME reduces by the same amount the contribution capacity available beyond the standard PEA ceiling. The usual strategy is to fill the PEA first, then open a PEA-PME for the “venture capital” share of the allocation.
What can be held in a PEA-PME?
The PEA-PME holds shares in European SMEs and mid-sized companies, listed or unlisted, as well as crowdfunding instruments: bonds, participating securities and minibonds. It offers direct exposure to the real economy and growth companies, with higher performance potential but more pronounced volatility and illiquidity than large caps. This characteristic justifies making it a complementary pocket, calibrated with care, rather than the core of an allocation.
Is the PEA-PME suitable for everyone?
No. It is aimed at investors who have already filled or largely built up their standard PEA, and who accept a higher risk profile in exchange for exposure to SMEs and mid-sized companies. The segment is more volatile and less liquid than large caps: the PEA-PME only makes sense alongside a more liquid core, never as the first building block. The selection of investments and the weighting of this pocket in the allocation are best framed with an adviser.
How does Balmont Conseil differ from a bank adviser for the PEA-PME?
Balmont Conseil is a wealth management advisory firm based in Lyon, a member of ANACOFI-CIF, with no capital ties to any bank. The PEA-PME, a more technical and riskier segment, demands rigorous selection of investment options and precise calibration of risk — something standard bank distribution rarely approaches with finesse. We work on an open-architecture basis: SME and mid-cap investment options are selected from among our partners according to the client's interest, and the PEA-PME is integrated consistently into your overall wealth strategy.
