PEA: Which securities are eligible (shares, ETFs, funds) and which are excluded?

A PEA (equity savings plan) accepts shares of companies headquartered in the European Union or the European Economic Area, shares in limited liability companies (SARLs), and funds that meet a quota of eligible assets. For ETFs, the AMF (French Financial Markets Authority) states that those accepted within a PEA "must be invested at least 75% in shares of companies within the European Union." This condition relates to the fund's composition.

This page discusses the securities that the plan can hold. It does not provide a list of ETFs or indices. It does not address taxation, withdrawals, or the situation of a holder who leaves France: another page on this site deals with limits, withdrawals, and taxation. Shares, fund units, and ETFs held in a PEA (Equity Savings Plan) can lose value: the invested capital is exposed to a risk of loss.

Departure conditions

To open a PEA (equity savings plan), you must be an adult individual with tax residency in France. There is no nationality requirement. Only one standard PEA can be opened per person, and the plan cannot be a joint account.

The maximum contribution is €150,000 for a standard PEA (Equity Savings Plan). For a PEA-PME-ETI (Equity Savings Plan for SMEs and Mid-Sized Companies), it is €225,000. The total amount contributed to both plans cannot exceed €225,000. Contributions must be made in cash. The plan's cash account does not accrue interest and cannot have a negative balance.

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The BOFiP and service-public.gouv.fr describe the securities that can be purchased directly with the funds from the plan:

The funds in the plan can be used to purchase or subscribe to "listed or unlisted securities" (BOFiP). Unlisted securities follow a specific registration procedure, which this page does not detail.

Where is the transmitter?

The issuer must have its registered office in a Member State of the European Union or in a State party to the European Economic Area. In the latter case, an administrative assistance agreement with France is required (BOFiP). A French issuer must be subject to corporation tax under the standard rules (BOFiP).

Funds: The 75 rule %

A fund is not eligible by nature. It is eligible based on transparency: what it holds is examined. The BOFiP (French Official Tax Bulletin) targets SICAVs and FCPs (French mutual funds), UCITS established in other EU or EEA member states, as well as certain private equity funds. It sets "a mandatory investment quota of more than 75% of their assets in eligible securities.".

Four points of clarification:

• The quota must be respected "at all times".
• A new fund has one month from its first public subscription to reach it.
• A "head" fund« may invest exclusively and permanently in other funds. The BOFiP then tolerates liquidity up to a limit of 10 % of its assets.
• The prospectus the fund, or equivalent document, must include the commitment to respect the quota (BOFiP).

Official sources do not all express themselves in the same way. The BOFiP (French Official Tax Bulletin) states "more than 75 %" for the quota. Economie.gouv.fr states "invested at least 75 %" in shares of companies headquartered in the European Union or the EEA. The geographical scope also varies: the AMF (French Financial Markets Authority) refers to companies in the European Union, while economie.gouv.fr and the BOFiP refer to companies headquartered in the Union or the EEA. For a fund whose allocation to eligible securities is very close to 75 %, the exact rule should be verified with the institution and in the fund's documents before investing.

And what about ETFs?

The AMF defines an ETF as an index fund that seeks to track the performance of a stock market index as closely as possible. It specifies that, for ETFs accepted within the framework of the PEA (equity savings plan), the 75% allocation requirement mentioned above applies. Economie.gouv.fr also lists "exchange-traded funds" among the funds "invested at least 75% in shares" of companies headquartered in the European Union or the EEA.

Two observations about the texts:

• In the reviewed sections, the BOFiP on eligible securities and the service-public.gouv.fr fact sheet do not use the word "ETF". They describe the funds and their quota.
• The pages viewed do not contain an official list of eligible ETFs.

For information on how ETFs work, see our dedicated page.

What is excluded or restricted

For other securities, the official sources consulted do not agree, particularly regarding warrants and shares of listed real estate companies. The rules should be reviewed before purchase, using the most up-to-date information.

The limit of 25 %

According to the BOFiP (French Official Tax Bulletin), the plan holder, their spouse or civil partner, their ascendants, and their descendants must not collectively hold, directly or indirectly, "more than 25% of the rights to the profits of the company whose shares are included in the plan." This limit applies for the duration of the plan. The BOFiP also covers the five years preceding the acquisition of shares under the plan: such a shareholding must not have been held at any time during this period. For a business owner, this rule must be verified before including shares of their own company or a family business in the plan.

Securities already held outside the plan

The BOFiP (Official Bulletin of Public Finances) stipulates that funds deposited into the plan's cash account cannot be used to acquire securities held outside the plan by the account holder, their spouse or civil partner, or their ascendants or descendants. For securities already held, the situation should be verified by consulting the relevant legislation and with the financial institution before any transaction.

The PEA-PME-ETI: size criteria

The PEA-PME-ETI (Equity Savings Plan for SMEs and Mid-Sized Companies) targets smaller companies. The criteria differ depending on whether the company is listed or not. For a non-listed company, impots.gouv.fr (the French tax authority website) considers fewer than 5,000 employees, with a turnover not exceeding €1.5 billion or a balance sheet total of less than €2 billion. Service-public.gouv.fr uses similar wording for these three thresholds. For a listed company, impots.gouv.fr adds that the share capital must not exceed 25% by a legal entity. The two official sources do not give the same market capitalization threshold for listed companies: this threshold should be verified with the source before any purchase. Other securities are also eligible for the PEA-PME-ETI, with their own specific conditions: these can be found on service-public.gouv.fr.

Numerical example (fictitious profile)

Situation. Martine, a 52-year-old executive, opens a standard French equity savings plan (PEA). She plans to contribute €100,000 in cash: €40,000 in shares of a listed company, €35,000 in Fund A, and €25,000 in Fund B. According to their documents, Fund A holds €820 million in eligible securities out of €1 billion in assets. Fund B holds €640 million out of €1 billion. She also plans to purchase shares in the family business within the plan. She currently holds 18% of the profit-sharing rights, and her spouse and children together hold 9%. Assumption: these rights already exist and do not apply to the shares she would purchase.

Issue. Which of these investments can the plan accommodate?

Strategy. Apply two controls: the quota of 75 % for each fund, the limit of 25 % for the family company (cumulative holdings of the holder and his relatives).

Result.

Only €75,000 of the planned €100,000 is allocated to the plan. They use 50% of the €150,000 limit, leaving €75,000 available. The remaining €25,000 in Fund B must be invested elsewhere. This example does not address the rule regarding securities already held outside the plan, described above.

This profile is fictitious. The figures illustrate the reasoning, and the calculation is performed in a control script. The fund values are chosen to be significantly lower than 75 % to avoid discrepancies in wording between sources. They are not indicative of your specific situation.

What changes depending on your situation

• The actual composition of the fund or ETF, to be read in his documents, and not his name.
• Your shareholding in the companies concerned, along with that of your spouse, your ascendants and your descendants.
• The type of plan : classic PEA or PEA-PME-ETI, whose criteria differ.
• The nature of the title : listed or unlisted, preferred shares, split securities.
• The payment method : payments are made in cash, the plan then buys the securities.

The rule depends on your situation. No results are guaranteed.