PEA-PME simulator: investing in SMEs and mid-sized companies with reduced taxation

Simulate your PEA-PME

The projection applies the tax benefits of a PEA (tax exemption after 5 years). Your data is neither stored nor transmitted.

Why the PEA-PME complements, without replacing, the classic PEA

The PEA-PME remains the least known investment vehicle in the equity family, because it is aimed at a more limited audience: those who have already filled, or wish to supplement, their standard PEA, and who accept a higher risk profile in exchange for exposure to European SMEs and mid-sized companies. It is not a first-line investment, but rather a diversification tool for existing portfolios.

Its taxation is strictly identical to that of the PEA Capitalization is tax-free as long as no withdrawals are made, capital gains are exempt from income tax after 5 years, and social security contributions of 17.2% (%) are maintained. The difference lies not in taxation, but in the investment universe: listed or unlisted SMEs and mid-sized companies, and crowdfunding platforms.

The PEA-PME (Equity Savings Plan for SMEs) does indeed include shares of SMEs and mid-sized companies, but also bonds, participating securities, and minibonds—making it a tool for diversification into the real economy, which is more volatile and less liquid than large-cap stocks. It is precisely this profile that justifies considering it as a complementary investment, and with discernment.

The 3 levers of a well-executed PEA-PME diversification

Lever 1: an additional cap on the same taxation

The PEA-PME offers a contribution limit of 225 000 €, This can be combined with the standard PEA (Equity Savings Plan) up to a total limit of €225,000. The tax treatment is identical: capital gains are exempt from income tax after 5 years, and social security contributions of 17.2% (%) remain in effect. For an investor who has already maxed out their PEA, this is an opportunity to extend a tax-free savings account—provided they accept the higher risk profile associated with SMEs and mid-sized companies. The 5-year mark is assessed separately for each plan: opening the PEA-PME early also means running out of time.

Lever 2: Financing the real economy, beyond listed shares

Whereas the classic PEA focuses on large-cap companies, the PEA-PME opens access to SMEs and mid-sized companies. listed and unlisted, as well as crowdfunding vehicles: bonds, participatory securities, minibonds. This represents direct exposure to the real economy, to growth companies, with higher performance potential but also increased volatility and illiquidity. This "venture capital" portion of the allocation is carefully calibrated—it only makes sense as a complement to a core of more liquid assets.

Lever 3: Properly link PEA and PEA-PME

The usual strategy is to First, saturate the classic PEA (equity savings plan). — more liquid, more easily diversified via ETFs — then to open a PEA-PME (SME Equity Savings Plan) for the "venture capital" portion of the allocation. The two limits are cumulative, but the overall limit of €225,000 in contributions necessitates a trade-off: each euro invested in a PEA-PME reduces the capacity of the standard PEA (Equity Savings Plan) by the same amount beyond this common limit. The selection of SME/mid-cap investments and the risk/liquidity balance are best approached with advice, as this segment is significantly more volatile and less liquid than large-cap stocks.

Real-life example: Thomas, 45, senior executive in the tech sector in Paris

Thomas has already largely funded his standard PEA (French equity savings plan) and wants to diversify into the real economy. He opens a PEA-PME (French SME equity savings plan) with €20,000 and contributes €300 per month for 10 years, investing in a selection of SME and mid-sized company funds aiming for a net return of 6% (with a higher risk profile). Here's what the simulator projects, compared to a regular securities account:

With identical contributions and performance, Thomas saves nearly €3,580 in taxes by placing his SME-ETI holdings in a PEA-PME rather than a securities account: the income tax of 12.8 % on the capital gain disappears after 5 years, leaving only the social security contributions of 17.2 %.

But the figure doesn't tell the whole story: the performance of 6 % used here implies a significantly higher risk than a global ETF, and lower liquidity. The PEA-PME (French SME savings plan) only makes sense as a complement to an existing portfolio, and its share in the allocation must be carefully calibrated—this is where the guidance of an advisor becomes invaluable.

Diversification does not eliminate the need for discernment.

This simulator calculates the tax advantage of the PEA-PME, which is identical to that of the standard PEA. But the real question isn't tax-related: it concerns the role this SME/mid-cap investment, which is more volatile and less liquid, should play in your overall portfolio. If poorly managed, the PEA-PME adds risk without any controlled return; if properly integrated, it extends your tax-free savings into the real economy and the growth potential of unlisted companies.

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any bank. This objectivity allows us to select SME and mid-sized company investments across the market and tailor their weighting within your portfolio, based solely on your interests and risk tolerance. Let's make an appointment to integrate the PEA-PME into a coherent overall strategy.

Frequently Asked Questions

What is the tax difference between a PEA and a PEA-PME?

None. The PEA-PME follows exactly the same tax rules as the standard PEA: tax-free capital accumulation as long as no withdrawals are made, exemption from income tax on capital gains after 5 years, and the 17.2% social security contributions (%) remain in effect. The only difference lies in the investment universe: the PEA-PME targets European SMEs and mid-sized companies and certain crowdfunding platforms, whereas the standard PEA focuses on European Union stocks and equity funds.

What is the ceiling for the PEA-PME and can it be combined with the PEA?

The PEA-PME offers a contribution limit of 225 000 €. It can be combined with the classic PEA, but the whole thing remains subject to a [regulation/framework]. overall limit of €225,000 of contributions. In other words, each euro paid into the PEA-PME reduces the available contribution capacity beyond the limit of the standard PEA. The usual strategy is to first maximize the PEA, then open a PEA-PME for the "venture capital" portion of the allocation.

What can be held in a PEA-PME?

The PEA-PME (Equity Savings Plan for SMEs) includes shares of European SMEs and mid-sized companies, both listed and unlisted, as well as crowdfunding instruments such as bonds, participatory securities, and minibonds. It offers direct exposure to the real economy and growth companies, with higher performance potential but also greater volatility and illiquidity than large-cap stocks. This characteristic justifies using it as a carefully calibrated supplementary portfolio, rather than the foundation of an entire asset allocation.

Is the PEA-PME suitable for everyone?

No. It's aimed at investors who have already maxed out or fully established their standard PEA (French equity savings plan), and who accept a higher risk profile in exchange for exposure to SMEs and mid-sized companies. This segment is more volatile and less liquid than large-cap stocks: the PEA-PME (SME equity savings plan) only makes sense as a complement to a more liquid base, never as the primary investment. The selection of specific investments and the allocation of this portion within the overall portfolio are best guided by professional advice.

How does Balmont Conseil differ from a bank advisor for the PEA-PME?

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any bank. The PEA-PME (Equity Savings Plan for SMEs), a more technical and riskier segment, requires rigorous investment selection and precise risk assessment—something standard banking distribution rarely addresses with nuance. Our objectivity allows for an open architecture: selection of SME and mid-sized company investments across the entire market, based solely on the client's best interests, and seamless integration of the PEA-PME into your overall wealth management strategy.