Avoiding the savings tax is not as difficult as you think. It is enough to take advantage of the slew of existing tax envelopes. Open at least a stock savings plan (PEA) and multi-support life insurance, even if you are only staying there for 500 euros at the start. The main thing is to take a date: in the first case, your future capital gains will be exempt after five years and, in the second, all of your earnings (from the stock market, real estate or funds in euros without risk) will be able to escape tax after eight years.
Multi-carrier life insurance
A tax oasis after eight years for capital gains and interest. With so-called “multi-support” contracts, which are the majority on the market today, we can invest in a secure euro fund, the yield of which greatly exceeds 1.50% per year for the best, but also in real estate, at through SCPIs, or on the stock market, via equity and bond funds covering all regions of the world (Europe, United States, Asia, etc.). All tax free up to 4,200 euros in earnings withdrawn per year (9,200 euros for a couple), provided you remain invested for at least eight years.
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PEA
To grow, tax-sheltered, shares and equity funds in the Europe zone. Equities of companies in the European zone and funds invested at least 75% in European equities: this is what you can put into an equity savings plan. With a big tax advantage, since dividends and capital gains will be exempt from tax after five years of detention (only the 17.2% of social security contributions will be due).
Good to know : to open a PEA, online banks and brokers specializing in equity investment (Bourse Direct, Degiro, Saxo Bank, etc.), with unbeatable brokerage fees, require only a small initial deposit, generally less than 500 euros. The maximum amount of payments per person is 150,000 euros (double for a married or civil partnership), bearing in mind that the gains made following the valuation of securities or the distribution of dividends are not considered as payments.
A noter that the Pacte law of 2019 erased the rigidities of the PEA: after five years, it is now possible to make withdrawals of money without closing the plan, while retaining the right to make other payments afterwards (withdrawals do not were previously authorized only from the age of eight, and any new deposit was prohibited).
Note also the creation of a PEA Jeunes, intended for 18-25 year olds. Until then, an adult child attached to the tax household of his parents was not entitled to the PEA. He can now have access to it, with a payment ceiling of 20,000 euros (raised to 150,000 euros when he turns 25).
On the tax side, finally, be aware that, since 2019, withdrawals made before the end of the fifth year are no longer taxed at 30%, including social contributions (against 36.2 to 39.7% previously, depending on the case. ).
PEA-PME
With this envelope of small business securities, no taxes after five years. Little brother of the PEA, the PEA-PME is intended to help finance small and medium-sized enterprises, as well as medium-sized enterprises (ETI). You can therefore only accommodate securities issued by European SMEs or mid-caps, or shares in funds invested at least 75% in this type of securities. In return, you benefit from a very advantageous tax system, identical to that of the PEA: the accumulated earnings are exempt from tax after five years.
Regarding the payment ceiling, the 2019 Pacte law has made improvements, by allowing up to 225,000 euros to be placed in a PEA-PME (instead of 75,000 euros), after subtracting the sums invested in the PEA. If you have paid 100,000 euros to your PEA, you can therefore deposit 125,000 euros to your PEA-PME. Note that the Pacte law also authorized the housing of SME bonds acquired through crowdfunding sites.
PEE
If your employer has opened one, put some of your savings there without hesitation. The company savings plan (PEE) should not be neglected by fans of stock market investments: it provides access to a range of funds made up of 10 to 80% international equities, and company equities. in which one works if it is listed on the stock exchange.
In addition, the payments made to the plan are most often supplemented by a special bonus from the employer (limited to three times the annual amounts placed by the employee and, for 2021, to 3,290 euros or 5,923 euros in the event of investment in shares of his company). Except for exceptional events (marriage, divorce, death of a spouse, etc.), the savings invested are blocked for at least five years. But the capital gains and dividends collected then escape tax, and are only subject to 17.2% social taxes.
Retirement savings plan
Dozens of funds available, and a big tax advantage on entry. Admittedly, the new retirement savings plan (PER), created at the end of 2019, has the sole objective of helping you build up a nest egg that will serve as a supplement to retirement, since the invested capital is not available – except for accidents of life ( disability, end of unemployment rights, over-indebtedness, etc.) or acquisition of your main residence – only at the time when you quit working life.
But as with multi-channel life insurance, you have the option of investing your savings in a risk-free euro fund and dozens of other more dynamic vehicles, including equity funds focused on most of the major industrialized countries and emerging. This with a nice tax advantage, since the payments are deductible from your taxable income. Very appreciable if you are heavily taxed: by being subject to the 30% bracket, a payment of 5,000 euros on a PER will give you a tax saving of 1,500 euros the following year.
Stock market gains: the punches you escape by opening a tax envelope
All listed products are, excluding tax envelopes (life insurance, PEA, PEE, etc.), subject to tax and social security contributions. But the tax authorities mark a clear difference between the income obtained from these investments and the capital gains collected at the time of their resale.
- Plus-values d’actions : They are subject to the single flat-rate deduction of 30% (12.8% taxes + 17.2% social contributions), with the possibility of opting for income tax instead of the tax of 12, 8%. If this option is chosen by the taxpayer, securities purchased before January 1, 2018 give rise to a tax allowance equal to 50% between two and eight years of detention, and 65% beyond eight years (these allowances do not apply). ‘not apply to funds where the share of shares held is less than 75%).
- Share dividends: They are subject, as soon as they are collected to the securities account, to a single flat-rate tax of 30% (whether dividends from French or foreign shares). But it is possible, as for equities, to opt for subject to the income tax scale if this solution proves more favorable for the taxpayer. In which case the dividends give the right to a reduction of 40%.
- Bond gains: Capital gains on bonds are subject to the same tax regime as that for shares. The interest received is reduced, before its payment into the account, by 17.2% of social security contributions and a tax deposit of 12.8% (30% of tax in all), with, as always , the ability to choose income tax. Note: on request, taxpayers whose annual income does not exceed 25,000 euros (50,000 euros for a couple) can request to be exempted from the deposit of 12.8%.
PER company
A good deal, even for young employees. If you have the chance to work in one of the 265,000 companies offering a company retirement savings plan (successor to Perco since October 2020), take advantage of it. As for a classic PER (see above), the payments, deductible from your taxable income, can be placed in more or less risky equity funds (including at least one focused on the social and solidarity economy), The employer bearing the costs of managing the account, sometimes even those of arbitration between the supports.
The premiums received (participation, profit-sharing, etc.) can also be accommodated there. And the invested savings being recoverable at any time in the event of the purchase of his main residence, it remains interesting for a young employee to fund a company PER if he aspires to become an owner one day.
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