According to the Bank of France, there were 7.28 million PEA accounts opened in France as of December 31, 2024, with a total outstanding amount of around 114 billion euros. Let us recall that only one PEA can be held per person and therefore 2 PEAs per household. This flagship envelope for stock market investment is widely endorsed by individuals who can benefit from significant tax advantages for their investments.
Do you personally hold a PEA but want to enjoy the fruits of your investments or close your placement? Find in this article all the answers to questions related to closing a PEA: what to do with cash on a PEA? How to recover the money held on this envelope? When should you sell? When to break a PEA? When to close a PEA?
Can you close a PEA? The essentials to know
Yes, but it is generally not recommended.
- Before 5 years: withdrawal = automatic closure + higher taxation.
- After 5 years: withdrawals are possible without closing the plan.
- To switch broker: it is better to perform a PEA transfer rather than a closure.
Should you close your PEA?
You should never close a PEA! Do not close your PEA as doing so would cause you to lose the tax history of the investment that allows you to benefit from tax advantages. Thus, beyond 5 years of holding the equity savings plan, you will be taxed at 18.6% on your gains, which corresponds to social contributions. You will, on the other hand, be fully exempt from capital gains tax. Here is the PEA taxation according to its history:
- Before 5 years of holding: gains taxed at 31.4% (flat tax) or the income tax brackets + 18.6% social contributions if this is more advantageous for you;
- After 5 years of holding: gains taxed at 18.6%.
If you wish to get rid of your PEA, for example because it is too costly in fees, in order to open a new one with a cheaper Brokerage and/or whose product and service offering better matches your expectations, do not close your PEA for fear of losing the tax history. You can, however, perform a PEA transfer.
It will always be preferable to keep your PEA open to benefit as soon as possible from the PEA’s tax advantages if you opened it less than 5 years ago, especially since stock market investment is considered over the medium to long term and you logically should not need the funds held in this envelope before the 5-year mark. If you opened your PEA more than 5 years ago, we can only encourage you to keep it as well. You can of course make withdrawals from your PEA, which are clearly different from closing the PEA.
Can you withdraw money from a PEA without closing it?
You can break a PEA, i.e., make withdrawals from this envelope, once the 5 years of holding have passed. Note that while a withdrawal before 5 years remains possible, this option is not recommended. Indeed, not only is a withdrawal before 5 years taxed at 31.4% or at the income tax rate + 18.6% social contributions if more favorable to you, but it also triggers the closure of the plan.
Conversely, after 5 years of holding the plan, withdrawals are possible at any time and do not trigger the closure of the plan.
When to sell your shares on a PEA?
You have held your PEA for more than 5 years and you’re wondering when to sell part of your investments and recover your stake? Two scenarios may prompt you to sell.
First, you may have invested in a PEA with a specific objective and investment horizon, for example, purchasing your primary residence within 8 years. You may have opened your PEA 8 years ago and you have a sizable amount in this envelope that you want to use as a down payment to finance your real estate purchase. It is entirely possible, and even recommended, to use your PEA to realize this project. But be mindful: once again, we advise not closing this envelope to preserve the tax history of the placement. You can however recover the sums held in your plan except for about one hundred euros to keep your PEA open.
Next, it is also possible when the PEA is primarily used to grow a sum of money over the long term without a precise objective, or with a very distant objective (such as retirement funding) to sell assets held on the PEA depending on market circumstances and your trading plan. For example, if a security reaches the valuation level you targeted, you can sell the security. If markets are at their historical highs, you may choose to take profits on many stocks… Unless you adopt a very long-term buy & hold approach. But in the case of selling your securities, remember that you can keep the proceeds from your take-profit in the PEA’s cash account with no tax due, while awaiting new opportunities on the stock market.
What to do with the liquidity on a PEA?
Many projects can be financed with a PEA. As seen, this can be the purchase of the primary residence, but also a vacation home, renovations, financing your children’s studies, retirement funding, funding a career change, etc.
Nevertheless, given the nature of the asset class – stocks are subject to fluctuations and carry a risk of capital loss – the PEA should be reserved for financing medium to long-term projects. The investment horizon must indeed be compatible with the risks associated with investing in the stock markets.
How to recover the liquidity of a PEA?
To recover money held on a PEA, you must first have liquidity on its cash account. If you do not have money on the PEA’s cash account because you have invested everything, you will first need to sell some securities held on the PEA’s securities account. The proceeds from selling your securities will be automatically credited to the cash account. Be careful, depending on market conditions, to carefully select the securities you will sell.
To withdraw liquidity from your cash account, you must submit a request to your stock broker or bank, specifying the amount and the account to which you want the funds transferred. Depending on your financial intermediary, the time to retrieve your liquidity can vary. Online brokers typically allow you to recover your funds in a few days, while the delay can be counted in weeks if you hold your PEA in a traditional bank.
Closing Vs Withdrawal Vs Transfer of the PEA: A Comparative Table
Three situations must be distinguished: definitive closure, partial withdrawal and simple sale of securities. To help you make the best choice, find the implications of each situation before and after 5 years of holding the plan.
| Action | Before 5 years | After 5 years |
| Withdrawal | Automatic closure | Authorized without closure |
| Closure | Loss of prior rights | Possible but not recommended |
| Transfer | Keeps prior rights | Keeps prior rights |
Comparison of the Best PEA 2026
Discover our comparison of the best PEAs to invest successfully in a PEA.
| Top Stock Brokers | Current Offers | See Offers |
|---|---|---|
| Invest in 70 European stocks with no brokerage fees + transfer 100% refunded until 31/12/2026. Capital risk* | ||
| Up to €500 in fees offered. Capital risk* | ||
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XTB PEA with 0% commission (0.20% beyond €100,000 invested / month). Capital risk* | |
| Invest from €1 on stocks, ETFs and scheduled investment plans. Capital risk* | ||
| Invest with confidence in stocks, options, ETFs and eligible mutual funds for the PEA. Capital risk* | ||
| 100% of PEA transfer fees refunded until 30/06/26. Investing carries a risk of loss* | ||
 |
From €0.99 per stock order + transfer fees refunded and free training. Capital risk* | |
 |
Transfer fees refunded 2x. Investing carries a risk of loss* |
*See terms on the site.
Also to read about the PEA:
Investing in a PEA: how much does it yield?
The 7 little-known advantages of the PEA
What are the best PEA stocks of 2026?
Which to choose between a stock account or a PEA?
PEA or life insurance: which investment to choose?
All our information is, by nature, generic. It does not take into account your personal situation and does not constitute in any way personalized recommendations for carrying out transactions and cannot be equated with financial investment advice, nor with any incentive to buy or sell financial instruments. The reader is solely responsible for the use of the information provided, with no recourse against the publisher Cafedelabourse.com. The publisher’s liability cannot be engaged in the event of error, omission or ill-timed investment.
