French investors have access to two highly competitive tax-advantaged accounts to build wealth: the PEA (Plan d'Épargne en Actions) and Assurance Vie. Both wrap your investments, allowing compounding without annual tax drag.
The Tax Exemptions Compared
- PEA (Plan d'Épargne en Actions): Exclusively for European equities and eligible ETFs. After **5 years**, withdrawals are completely exempt from income tax, leaving only social contributions of 17.2%. Total contribution limit is €150,000.
- Assurance Vie: Can hold global funds (unit-linked / unités de compte) and secure euro funds. After **8 years**, withdrawals enjoy an annual tax-free rebate on gains of €4,600 (single) or €9,200 (couple). Gains above this are taxed at 24.7% (with social contributions included) or 30%.
PEA vs Assurance Vie Tax Comparator
Estimated Tax (PEA):
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Estimated Tax (Assurance Vie):
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