In the family of regulated banking products, the share savings plan (PEA) is certainly much less known than the very popular livret A, but also more profitable. According to the data available from the Banque de France, the average rate of return on these investments was 2.41% in 2018.
Ease of management
Any adult resident in France has the right to open one - and only one - PEA. This product consists of acquiring a portfolio of shares of European companies invested in the stock market. Unlike a traditional securities account, this regulated system targets certain specific and restrictive investments (listed or unlisted shares under certain conditions, investment and mutual certificates, equity securities of cooperative companies, shares in collective investments, etc.) with the aim of supporting the national economy.
Once opened with a bank or any other financial intermediary, the stock savings plan can be funded freely, at the pace that suits you and without a minimum amount. However, a payment ceiling limits you to 150,000 euros and up to 225,000 euros if you opt for the PEA-PME, intended specifically to finance small and medium-sized businesses.
Advantageous taxation
In order to encourage as many people as possible to support entrepreneurship, the Pacte law of May 22, 2019 relaxed the operating rules of this product and set up an attractive tax framework favoring medium and long-term investment. Any withdrawal of money during the first five years (previously it was eight years) results in the closure of your PEA (except in cases of necessity), while the net gain obtained is subject, to the choice, to social security contributions and deduction. single flat rate (PFU) or income tax according to the scale applicable to you.
Conversely, after five years of ownership, you can now continue to fund your savings plan with shares while making partial withdrawals. But above all, taxation is reduced to a minimum, since the sums recovered are no longer subject only to social security contributions. Likewise, in the event of the death of the plan holder, the account is closed and dividends and capital gains are exempt from income tax regardless of the length of detention. The heirs can also choose to keep the acquired titles.
Capped fees
The Pacte law also provides for a cap on the management fees of the stock savings plan. The measure entered into force on July 1, 2020. The opening of a PEA now costs a maximum of 10 euros, while account maintenance fees are limited to 0.4% of the value of the plan (increase possible per line or unit of account of 5 euros for listed securities and 25 euros for unlisted).
Transaction fees are also restricted to 0.5% of the amount for a dematerialized transaction and to 1.2% in other cases. Finally, the transfer and closing costs may not exceed, per line, 15 euros for listed securities and 50 euros for unlisted securities, subject to respecting a ceiling of 150 euros for the whole.
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