All you need to know about PEA/PEA-PME

All you need to know about PEA/PEA-PME

The Share Savings Plan (PEA) and the PEA-PME are investment tools that can really transform the way you invest. But what exactly is it, and how do you get the most out of it? 🧐

PEA vs PEA-PME: What are the differences? 🏦

The classic PEA allows you to invest in shares of European companies and can be taken out in banks or insurance companies.

In order to grow their savings, a natural person whose country of tax residence is France can open:

• A stock savings plan (Bank PEA)‍
• An insurance savings plan (PEA insurance)‍
• an equity savings plan for SMEs and ETIs (PEA-PME)

If you want to broaden your investment horizon, the PEA-PME adds an even more targeted dimension, by making it possible to invest in European SMEs and ETIs.

🌍 Key benefit? The PEA-PME has a payment ceiling of €225,000 compared to €150,000 for the classic PEA, which allows you to invest more. But be careful, even if you combine the two plans, you cannot exceed €225,000 for both.

Tax benefits that make a difference 💰

Taxation is often the core of the attractiveness of these products. After 5 years, the capital gains made are exempt from income tax (but subject to social security contributions). You can make partial withdrawals without closing your plan. But a small downside, withdrawals before 5 years lead to the closure of the plan, except in specific cases (such as a company in liquidation).

How to invest via a PEA/PEA-PME on a crowdfunding platform? 📲

With the rise of crowdfunding platforms, it is becoming easier and easier to invest in projects eligible for PEA/PEA-PME. But how does that work exactly?

Once you have validated your PEA-PME account on a crowdfunding platform (and of course, after entering your bank account), you can start investing in the projects that interest you. The investment process is simple: once the subscription form is signed, you make a transfer via your bank. The funds do not pass through your electronic wallet, which makes a real difference with traditional investments.

What you need to remember:

• Classic PEA and PEA-PME can be combined, but respect the respective ceilings.
• After 5 years, your capital gains are exempt from income tax (but subject to social security contributions).
• An investment via PEA/PEA-PME never goes through the investor's electronic wallet, guaranteeing more fluid and secure management.
• Withdrawals before 5 years? This results in the closure of the plan, with some exceptions

To find out more about this subject, do not hesitate to watch the very well done video by the CEO of Finary Mounir available on the following link https://www.youtube.com/watch?v=d7YuKVAr514

At Capsens, we support crowdfunding platforms in the management of these PEA/PEA-PME investments. An innovative and secure solution for your financial projects! 🚀