France's PEA and PEA PME‑ETI Rules Limit Single Account Ownership

Under French law a person may hold only one classic Plan d’épargne en actions (PEA). The rule applies to both bank‑issued and insurance‑based PEAs, and any early withdrawal before the fifth anniversary typically forces the plan’s closure and triggers standard income‑tax treatment. After five years of continuous holding, gains become exempt from income tax, and longer holding periods bring additional tax benefits.

Investors can complement a classic PEA with a PEA PME‑ETI, which is designed for small‑ and mid‑cap companies but cannot be used for large‑cap stocks or ETFs. Couples or cohabitants may each maintain their own PEA, allowing two accounts within a shared household. A separate “PEA jeune” is available for adults aged 18‑25 who remain attached to their parents’ tax household, limited to one per person and automatically converting to a classic PEA at age 25 or upon fiscal separation.