The PEA in one paragraph
The Plan d'Epargne en Actions is a tax-advantaged equity wrapper. It can hold European Union (EEA) listed equities, ETFs that meet the PEA-eligibility test, and funds (OPCVM) that themselves invest at least 75% in eligible equities. The contribution cap is EUR 150,000 per person, plus EUR 75,000 in a PEA-PME for SME stocks. After five years, gains can be withdrawn at the flat-rate social charges (17.2%) only - no income tax. Before five years, the wrapper is broken on partial withdrawal.
What it is not: a global equity wrapper. Direct holdings of US, UK or Asian listed shares are not PEA-eligible. Most well-known global ETFs domiciled in Ireland or Luxembourg are; some PEA-eligible synthetic ETFs replicate the S&P 500 or MSCI World indirectly.
The assurance-vie in one paragraph
Assurance-vie is a life-insurance wrapper that doubles as an investment account. There is no contribution cap (subject to the EUR 150,000 per beneficiary inheritance allowance below). Inside the contract you can hold the fonds en euros (a capital-guaranteed pool) and unit-linked supports (unites de compte) which can be ETFs, funds, structured products and increasingly private-equity sleeves. After eight years, gains are taxed favourably (24.7% flat for amounts up to EUR 4,600 per person per year, then PFU 30% above).
The two killer features beyond tax are liquidity and inheritance. You can withdraw at any time, with the favourable rate kicking in at year 8. On death, the wrapper passes outside the regular succession with up to EUR 152,500 per beneficiary tax-free if contributions were made before age 70. That is the reason most older French wealth holders run an assurance-vie even when the pure tax maths would suggest other wrappers.
How they compare
On tax efficiency for European equities held to year 5+, the PEA wins. On scope (anything you can buy), the assurance-vie wins because of unites de compte. On liquidity within the first eight years, the assurance-vie wins. On inheritance, the assurance-vie wins decisively. On simplicity, the PEA wins.
- Pick a PEA if your priority is European equity exposure with the lowest possible long-term tax drag and you can leave the money five years.
- Pick an assurance-vie if your priority is flexibility, inheritance planning, or holding asset classes (US/Asian equities, structured products, private equity) that the PEA cannot.
- Most informed French investors run both, with the PEA filled first up to the cap.
And the third option: the PER
Since the 2019 PACTE law there is a third wrapper worth knowing: the Plan d'Epargne Retraite. It is the French SIPP-equivalent. Contributions are tax-deductible against your taxable income (up to a cap), the wrapper grows tax-free, and you take it out at retirement (or for buying a primary residence). The PER is most attractive for high-bracket taxpayers expecting to retire into a lower bracket, and stacks naturally with PEA + assurance-vie rather than competing with them.
Where the holdings actually live
Practically, in 2026, the PEA is most commonly opened with Boursorama, Bourse Direct, Saxo Banque or Fortuneo - the online brokers in France with the lowest custody fees and best ETF coverage. Assurance-vie contracts are typically opened with insurance fintechs (Linxea, Yomoni, Goodvest, Nalo) or directly with insurers (Generali, Spirit-Generali, Crédit Mutuel). The PER is offered by both broker and insurance distribution channels.
If you hold positions across more than one of these wrappers - PEA at Boursorama, assurance-vie at Linxea, PER at Cardif, plus a compte-titres at Trade Republic and crypto on Bitpanda - the per-platform views become low-information very fast. The wrapper-aware view is what tells you whether your overall European-equity exposure is balanced or accidentally tripled.
Frequently asked questions
Can I hold US equities in a PEA?
Direct US-listed shares, no - the PEA is restricted to EU/EEA-listed securities. Indirect exposure via PEA-eligible synthetic ETFs (e.g., Amundi PEA S&P 500 UCITS ETF, Lyxor PEA Monde MSCI ETF) is the standard workaround and is widely used. The synthetic structure carries a thin counterparty layer but is otherwise functionally equivalent to a physical S&P 500 ETF.
Should I open an assurance-vie before age 70?
If inheritance is part of your planning, yes. The most favourable inheritance treatment (EUR 152,500 per beneficiary tax-free) only applies to contributions made before age 70. Contributions after 70 fall under a less generous EUR 30,500 collective allowance. Opening and seeding an assurance-vie in your 50s or 60s captures the better treatment for the long-term beneficiary picture.