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Taxation

  

 

Withdrawal Income tax Social security contributions
In first 2 years Tax due on net gain at a rate of 22.5% if the annual sales threshold* is exceeded Net gain since account opening liable to social security contributions
Between 2 and 5 years Tax due on net gain at a rate of 18% if the annual sales threshold* is exceeded Net gain since account opening liable to social security contributions
After 5 years
No tax due
Net gain on close of account or on each partial withdrawal after 8 years (pro rata for each withdrawal) is liable to social security contributions
Option of transferring capital losses in the case of the disposal of the entire portfolio if the annual sales threshold* is exceeded.
Special exemptions (income tax and social security contributions)
In case of closure before 5 years due to one of the following:
  • Death of account holder ;
  • A disabled account holder moves to another household ;
  • The tax payer moves overseas (except in the event of transfer in a country located out of the European union and if the PEA has been open for more than 5 years; in this case, social contributions are due);
  • Creation or takeover of a business, under certain conditions.
(*Annual sales threshold of €25,000 per household for 2008 income tax.)