What is PEA? | Help Center

*Available in France only.

A PEA (Plan d'Épargne en Actions) is a tax-advantaged investment account available to French residents. It allows you to invest in eligible assets, such as stocks and ETFs, while benefiting from significant tax advantages, provided you hold the account for at least 5 years.

Key Benefits of a PEA

Tax Advantages:

Once you have held your PEA for 5 years or more, any capital gains and dividends earned within the account are not taxed while they remain in the PEA. Income tax (usually 12.8%) is not applicable to withdrawals made after the 5-year holding period. However, if you make withdrawals, the gains, and dividends will be subject to social security contributions (currently 17.2%).

Investment Options:

You can use a PEA to invest in eligible European stocks, ETFs, and investment funds that meet specific PEA criteria.

* Note that as of 13 December 2024 Shares offers a PEA with ETFs only

Long-Term Investment Strategy:

The PEA is designed for long-term investing. With a minimum holding period of 5 years, it helps grow your investments while taking advantage of the tax exemptions.

Types of PEA

There are two main types of PEA accounts: the Classic PEA, which allows broad investment in European equities and ETFs, and the PEA-PME, focused on small and medium-sized European businesses. At Shares, we currently offer the Classic PEA. The maximum contribution limit is €150,000 if you are part of your own tax household, and €20,000 if you are under your parent's tax household.

* Note that as of 13 December 2024 Shares solely offers a Classic PEA

How is a PEA Different from a CTO?

While PEA (Plan d'Épargne en Actions) is tailored for tax-efficient investments in European markets, the CTO (Compte-Titres Ordinaire) is a general investment account that provides broader flexibility for global investments.

Here’s a comparison of their key differences:

Feature	PEA	CTO
Tax benefits	Tax-free profits after 5 years (social contributions apply).	No tax benefits; capital gains taxed.
Investment scope	EU Stocks, ETFs with majority EU exposure *Note that as of 13 December the Shares Classic PEA is limited to ETFs.	Allows global investments, including U.S. assets.
Withdrawal rules	Restricted withdrawals before 5 years. Withdrawals before 5 years will result in the closure of the PEA, and you will lose the associated tax benefits.	No restrictions; funds can be accessed anytime.
Max contributions	€150,000 (if you are under your own tax household), and €20,000 (if you are under your parent's tax household).	No contribution limits.