In France, if you have decided to invest in the stock market, you are invited to sign up for one of these accounts whether for the short or long term.
The securities and passbook account or the cash account
It’s meant for everyone. Once you are registered, you are entitled to trade in stock market assets without restriction. At any time, the value of your investment is not limited. It is ideal for stock market experts. But bear in mind that the member is subject to tax deducted as a percentage of his declared income and stock market profits.
The PEA account (Plan d’Epargne en Action )
It opens its door to invest in a wide range of European equities, including Iceland, Norway and France. It’s the right stock market plan for the long term with retirement in mind. Thousands of euros for the capital. A resident in France can open a single account, while two accounts if you are a tax household. This account obliges the social taxes permanently and does not allow a withdrawal for 5 years. On the other hand, you can always multiply your gains in the stock market, and they are no longer taxed after 5 years. Moreover, you enjoy your freedom after 5 years : a permanent withdrawal and a capital loan are offered to you if necessary without the gain tax.
The most popular stock market account is life insurance. It is a coverage that promises flexibility for the majority of the current public with a very interesting tax framework. A hundred euros for the capital. Armed with a principle of units of accounts (UC), it allows to use a large part of the cash funds. A wide choice of shares is available. Of course, as mentioned above, even if you have a good amount at the beginning, you have to remain very moderate. After the first 8 years of membership, the earnings received are tax-exempt. But if the owner redeems the policy during a period of less than 8 years, the tax can be as high as 15% to 35%.
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Photo by Martaposemuckel