PEA simulator: capital, capital gains and tax exemption after 5 years

Simulate your PEA

The projection compares taxation before and after the 5-year mark. Your data is neither stored nor transmitted.

Why the PEA remains the most powerful — and most overlooked — equity investment vehicle

Many savers invest in stocks through a standard securities account, where gains are subject to a flat tax of €30 from the first euro withdrawn. The PEA (Equity Savings Plan), however, radically transforms the long-term tax equation, but remains underutilized: opened late, poorly funded, or abandoned in favor of more visible investment vehicles. This is an allocation error, as no other investment vehicle combines equity exposure with income tax exemption.

The mechanism relies on two engines. First, the capitalization in franchising As long as you don't withdraw anything, dividends and capital gains are reinvested without any taxation—neither income tax nor social security contributions. Taxation only occurs upon withdrawal. Then, the 5-year mark, which completely exempts capital gains from income tax.

Over the long term, the difference compared to a standard securities account is considerable. With identical performance, the PEA (equity savings plan) retains the income tax that would have reduced each withdrawal and reinvests it. It is precisely this difference, accumulated year after year, that this simulator highlights.

The 3 levers of the PEA that your bank advisor rarely optimizes

Lever 1: The 5-year mark, the decisive advantage

Before 5 years, a withdrawal is subject to a flat tax of €30 and generally results in the closure of the plan. After 5 years, everything changes: withdrawals are unrestricted, the plan remains open, and capital gains are not taxed. fully subject to income tax — only the social security contributions of 17.2 % apply. Hence a golden rule too often neglected: it is necessary «"set a date" early, Even with a modest initial deposit, the 5-year timer will start running. A plan opened at age 30 with €500 will already be mature when the one opened at age 40 will have barely begun.

Lever 2: Tax exemption on internal arbitrations

Within the PEA, you can selling one line and buying another without any taxation No tax or social security contributions are due as long as the funds remain within the plan. In a securities account, each winning trade triggers a 30% tax, reducing the reinvested capital. This tax exemption on trades allows you to actively manage your asset allocation—securing gains, diversifying into other sectors—without the tax burden that silently erodes the performance of a standard account.

Lever 3: Expose yourself to the world through PEA-eligible ETFs

The PEA (Equity Savings Plan) generally only accepts shares of European companies and funds invested at least 75% in European Union shares. Many mistakenly conclude that it limits investment to the European market. In reality, many Synthetic replication "PEA-eligible" ETFs These options allow for indirect exposure to global markets—the United States, emerging markets—while still complying with eligibility requirements. This is the lever that transforms the PEA (equity savings plan) from a purely "French-European" investment vehicle into a genuine tool for tax-free global exposure, and it remains largely unknown.

Case study: Camille, 34 years old, a 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 with a net return of 6 % (a French tax-advantaged 30% of the value of a standard securities account). Here's what the simulator projects, compared to the same investment held in a regular securities account taxed at 30 %:

With identical contributions and performance, Camille retains nearly €7,400 more by using a PEA (equity savings plan) rather than a securities account: the income tax of 12.8% that would otherwise be levied on her capital gain is simply eliminated after 5 years. Only the social security contributions of 17.2% remain.

The lesson is simple: for long-term equity exposure, the choice of investment vehicle is just as important as the choice of stocks. Having "started" early, even with a small initial investment, allows Camille to benefit from the tax exemption well before her peers who open their plans later.

The envelope eliminates the tax, the allocation determines performance

This simulator calculates the tax difference between a PEA (equity savings plan) and a standard securities account. But the account itself isn't everything: the real value lies in the asset allocation—choice between self-directed and managed accounts, selection of truly diversifying eligible ETFs, risk management according to your investment horizon, and integration of the PEA with your assurance-vie, your PER (retirement savings plan), and any PEA-PME (equity savings plan for SMEs). A PEA that's well-funded but poorly invested remains an underperforming PEA.

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 investment vehicles across the entire market and build an allocation aligned solely with your interests, without pushing the in-house funds of any particular network. Let's make an appointment to structure or optimize your PEA within a coherent wealth management strategy.

Frequently Asked Questions

When does the PEA become tax-advantageous?

From the outset, the plan accrues capital tax-free: dividends and capital gains are reinvested tax-free as long as you make no withdrawals. The decisive advantage is triggered after 5 years During the holding period, capital gains are entirely exempt from income tax, with only social security contributions of 17.2% remaining due. Before five years, a withdrawal is subject to a flat tax of 30% and generally results in the closure of the plan. Hence the advantage of opening an account early, even with a modest initial investment.

What is the maximum amount for a PEA (equity savings plan)?

The maximum contribution limit for a standard PEA is 150 000 €. It can be combined with a PEA-PME, but the entire arrangement remains subject to an overall limit of €225,000 in contributions. Note: this limit applies to contributions, not the plan's value — your PEA can therefore easily exceed €150,000 in value thanks to capital gains, without causing any problems.

What can be held in a PEA?

The PEA (Equity Savings Plan) accepts shares of European companies and funds (UCITS, ETFs) that invest at least 75% in European Union equities. Many "PEA-eligible" ETFs, however, allow indirect exposure to global markets—the United States, emerging markets—while still complying with the eligibility rules. This is what transforms the PEA into a tool for tax-efficient international exposure, rather than simply a French-European investment vehicle.

Is a PEA more advantageous than a regular securities account?

In the long term and for eligible shares, yes, without a doubt. A standard securities account taxes capital gains at a flat rate of €30 from the first euro withdrawn. After 5 years, a PEA (equity savings plan) completely exempts capital gains from income tax (€12.80), leaving only social security contributions of €17.20. With identical performance, the compound savings year after year are substantial. A standard securities account remains useful for shares not eligible for a PEA or for holdings exceeding the investment limit.

How does Balmont Conseil differ from a bank advisor for my PEA?

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any bank. A bank advisor will readily steer your PEA (French equity savings plan) towards funds managed by their group, which often have higher fees. Our objectivity allows for an open architecture: selection of ETFs and funds across the entire market, based solely on the client's interests, and integration of the PEA with your other investment vehicles (assurance-vie, PER, PEA-PME) within a comprehensive strategy.