A popular savings plan (PEP) can no longer be opened since September 25, 2003 (BOFiP § 90). Plans opened before this date continue to operate according to their existing rules. Contributions are limited to €92,000, but the total amount of the plan, including interest earned, is not capped. Interest earned is exempt from income tax when the withdrawal occurs after the eighth year. Social security contributions remain payable.
This page describes the rules provided by the BOFiP (version of 20/12/2019) and service-public.gouv.fr (verified on 01/01/2026) for an existing PEP (Plan d'Épargne Populaire - Popular Savings Plan). It does not provide information on social security contribution rates, fees, or declaration fields. It does not detail cases of force majeure and does not address the taxation of a holder residing outside of France. For any changes subsequent to these two versions, you should consult the official sources.
What is a PEP?
The BOFiP (French Official Tax Bulletin) describes the PEP (Plan d'Épargne Populaire - Popular Savings Plan) as a long-term savings plan whose contributions are "allocated either to a cash deposit account or to a assurance-vie policy." The opening of the plan requires a written contract.
| Point | What the sources say |
|---|---|
| Opening period | From January 1, 1990 to September 24, 2003 |
| Since September 25, 2003 | No opening possible |
| Existing plans | «"The operating conditions of PEPs opened before this date remain valid" (service-public.gouv.fr) |
| Shapes | Cash deposit account, or assurance-vie |
| Insurance contract | It must include assurance-vie coverage; bonds and capitalization contracts cannot be included in a PEP. |
The insurance contract may provide for additional coverage, for example in the event of death, and the reversion of a life annuity to a third party.
Payments: €92,000
Contributions to a PEP (Plan d'Épargne Populaire) are limited to €92,000 (BOFiP, § 230). Service-public.gouv.fr states: "You can continue to make contributions up to the legal limit of €92,000."«
The limit applies to contributions, not the plan's value. Capitalized gains are added to this limit: the total amount in the plan is not capped (BOFiP).
The 8-year and 10-year time limits
The time limits are calculated from date to date from the opening of the plan (BOFiP, § 90).
| Withdrawal | Consequence according to the BOFiP |
|---|---|
| Less than 8 years after opening (§ 70) | The BOFiP states, in the past tense, that it led to the closure of the plan and, except in cases of force majeure, the taxation of the proceeds |
| After 8 years (§ 80) | No loss of tax benefits |
| After 8 years and before 10 years (§ 80) | Plan closure |
| After 10 years (§ 80) | The withdrawal "prohibits further deposits"« |
The BOFiP (§ 90) indicates that since no PEP can be opened after September 25, 2003, these eight or ten year periods are reached for existing plans.
Regarding the possibility of making further contributions, the two sources are not consistent on this page: service-public.gouv.fr states that contributions remain possible up to a limit of €92,000, while the BOFiP (§ 80) states that a withdrawal after ten years prohibits further contributions. You should verify this information with both the source and the institution managing your plan.
Income tax and social security contributions
Income tax. The proceeds are tax-exempt provided the withdrawal occurs after the eighth year of the plan's opening. The exemption covers all proceeds and gains realized within the framework of the PEP (Plan d'Épargne Populaire). Service-public.gouv.fr mentions an income tax exemption for both the capital and the life annuity after a certain period.
Social security contributions. The exemption applies only to income tax. The BOFiP (Official Bulletin of Public Finances) states: "However, social security contributions remain due in all cases." This page does not publish any rates: please verify with the source.
Transferring your PEP
Transferring a PEP (Plan d'Épargne Populaire) from one managing institution to another is not considered a withdrawal and does not trigger income tax. A new insurance or deposit contract is established with the institution of your choice.
Social security contributions depend on the type of plan, according to the BOFiP (Official Bulletin of Public Finances):
| Nature of the PEP | Social security contributions on transfer |
|---|---|
| In euros or banknotes | The products are subject to it on the date of transfer |
| In unit-linked or multi-support | The transfer has no consequences; the basis for a subsequent withdrawal takes into account all capitalized income on the plan. |
A unit-linked PEP (Plan d'Épargne Populaire) carries a risk of capital loss. The date on which these levies become due for this type of plan should be verified with the BOFiP (§ 295).
Death and holder residing outside of France
For a bank-based PEP (Plan d'Épargne Populaire), the funds held in the deceased's plan become part of their estate (BOFiP, § 350). Service-public.gouv.fr states that the bank, once informed of the account holder's death, must close the PEP. This page does not address the case of a PEP held within a assurance-vie policy.
According to the BOFiP (French Official Tax Bulletin), individuals whose tax residence is outside France can hold a PEP (French Equity Savings Plan). Their tax treatment is not addressed here; please verify with the source.
Existing PEPs: numerical example (fictitious profile)
Situation. Hélène opened a PEP (Plan d'Épargne Populaire - Popular Savings Plan) on March 12, 2001. She has contributed a total of €70,000; the plan is worth €96,000 as of October 18, 2026. She is considering a withdrawal. These amounts and dates are hypothetical.
Issue. What effect does this withdrawal have on his plan, and what happens to his ability to pay?
Strategy. The BOFiP guidelines are applied: periods of 8 and 10 years from date to date, payment ceiling of €92,000. Social security contributions are not calculated: this page does not display any rates.
Result.
| Landmark | Value |
|---|---|
| Opening date | 12/03/2001, before 25/09/2003 |
| Eight years old reached | 12/03/2009 |
| Ten years have passed | 12/03/2011 |
| Seniority as of 18/10/2026 | 25 years old |
| Capitalized products (€96,000 - €70,000) | €26,000 |
| Plan value in relation to the contribution limit | €96,000 is greater than €92,000: the total is not capped. |
| Remaining payment margin (€92,000 - €70,000) | €22,000 |
The planned withdrawal occurs more than ten years after the account was opened. According to the BOFiP (French Official Tax Bulletin), it does not result in the loss of tax advantages: the proceeds are exempt from income tax, but social security contributions remain due. The BOFiP (§ 80) also states that a withdrawal after ten years prohibits further contributions, whereas service-public.gouv.fr states that contributions remain possible up to a limit of €92,000: before relying on the €22,000 margin, it is necessary to verify this with the source. This figure describes a rule regarding the limit and the time frame. It says nothing about the return, nor what would be suitable for Hélène. The profile is fictitious.
Existing PEPs: what changes depending on your case
- The opening date of your plan : it sets the starting point for the 8 and 10 year periods.
- The form of your PEP : deposit account or assurance-vie, in euros or in units of account. It affects social security contributions during a transfer.
- The amount already paid compared to the ceiling of €92,000.
- Your intention : withdraw, continue to pay, transfer.
- Your tax residence : the taxation of a non-resident holder is not addressed here.
The rule depends on your situation. No results are guaranteed.
Frequently asked questions
Is it still possible to open a PEP?
No. Service-public.gouv.fr states: "This savings product has not been marketed since September 25, 2003."«
Is a PEP (Personal Protective Equipment) required upon discharge?
The proceeds are exempt from income tax if the withdrawal occurs after the eighth year of opening. Social security contributions remain due.
Can contributions still be made to a PEP opened before 2003?
Service-public.gouv.fr states that you can continue to contribute up to a limit of €92,000. The BOFiP (§ 80) states that a withdrawal after ten years prohibits further contributions. You should verify this with the source and the institution managing your plan.
Is transferring a PEP considered a withdrawal?
No. The BOFiP (§ 295) states that the transfer "does not constitute a withdrawal." Social security contributions on the transfer depend on the type of plan.
Taking stock of an old PEP
A plan opened more than twenty years ago deserves to be reviewed, including its figures: payments, value, and contract type. Schedule an appointment with Balmont Conseil, a Lyon-based firm established for nearly 14 years, to assess your situation.
Alexis SagnierFinancial and real estate investment advisor, insurance broker, AMF certified
Founder of Balmont Conseil, Lyon (ORIAS 13003497)
Read also
- PEA and PEA-PME-ETI: limits, withdrawals, taxation 2026
- Assurance-vie or PEA: compare the tax implications in 2026
- Assurance-vie beneficiary clause: drafting, modifying
- Redemption of a capitalisation contract: taxation
- Perp: What has become of this contract since October 2020?
- PEA insurance: capitalization contract and life annuity
Official sources
- BOFiP, BOI-RPPM-RCM-40-60, Popular savings plan (version of 20/12/2019): https://bofip.impots.gouv.fr/doctrine/BOI-RPPM-RCM-40-60
- service-public.gouv.fr, Can you still open a popular savings plan (PEP)?, verified on 01/01/2026: https://www.service-public.gouv.fr/particuliers/vosdroits/F2908
