Everything You Need to Know About PEA / PEA-PME
The Plan d'Épargne en Actions (PEA) and PEA-PME are investment tools that can truly transform the way you invest. But what exactly are they, and how can you make the most of them? 🧐
PEA vs PEA-PME: What’s the Difference? 🏦
The classic PEA allows you to invest in shares of European companies and can be taken out with a bank or an insurance company.
To grow your savings, an individual whose tax residence is in France can open:
A PEA banking plan
A PEA insurance plan
A PEA for SMEs and mid-sized companies (PEA-PME)
If you want to broaden your investment horizon, the PEA-PME adds another dimension by enabling investments in European SMEs (Small and Medium Enterprises) and mid-sized companies (ETIs).
Key Advantage of PEA-PME:
The PEA-PME allows you to invest in a more targeted segment, with a higher contribution limit of €225,000, compared to the €150,000 limit of the classic PEA. This gives you a higher ceiling for your investments. However, even when combining both plans, the total cannot exceed €225,000 across both.
The Tax Benefits That Make a Difference 💰
Taxation is often the key attraction of these products. Here’s the breakdown of the tax benefits:
After 5 years, capital gains are exempt from income tax, though still subject to social contributions.
You can make partial withdrawals without closing your plan. However, withdrawals made before 5 years result in the closure of your plan, except in specific cases (such as a company in liquidation).
These tax exemptions are one of the main reasons why PEA and PEA-PME are particularly attractive for long-term investors seeking to grow their savings while minimizing tax liabilities.
How to Invest via PEA / PEA-PME on a Crowdfunding Platform? 📲
With the rise of crowdfunding platforms, investing in projects eligible for PEA and PEA-PME has become easier than ever. But how exactly does it work?
- Validate your PEA-PME account: Once you've validated your PEA-PME account on a crowdfunding platform (and, of course, after entering your bank details), you can start investing in the projects that interest you.
- Investment Process: The process is simple: once the subscription form is signed, you make a bank transfer. This is a key difference from traditional investments, as the funds do not pass through your electronic wallet, ensuring smoother and more secure management.
This method guarantees a more secure and controlled way of investing compared to traditional electronic wallet-based transactions.
What You Need to Remember:
PEA and PEA-PME can be combined, but be sure to respect the respective contribution limits.
After 5 years, your capital gains are exempt from income tax (but subject to social contributions).
An investment via PEA/PEA-PME never goes through your electronic wallet, ensuring smoother and more secure management.
Withdrawals before 5 years lead to the closure of the plan, with exceptions.
To dive deeper into the topic, check out the well-explained video by Mounir, CEO of Finary, available at this link: https://www.youtube.com/watch?v=d7YuKVAr514.
How Capsens Can Help You Manage Your PEA / PEA-PME Investments 🚀
At Capsens, we assist crowdfunding platforms in the management of PEA/PEA-PME investments, providing an innovative and secure solution for your financial projects.
If you're looking to make the most out of your PEA or PEA-PME, our expertise can guide you through the process and ensure your investments are managed in the best possible way.