ETF taxation in France: PEA, CTO and life insurance (2026)

The PEA: the premier wrapper for ETFs

After 5 years, the share savings plan is exempt from income tax: only the 18.6% social levies apply (CSG increase in 2026, versus 17.2% before).

• Contribution cap: €150,000.
• Eligibility: European stocks and ETFs, or funds holding ≥ 75% EU/EEA shares (often synthetically replicated ETFs for the MSCI World or S&P 500).
• Withdrawal before 5 years = closure + 31.4% flat tax.

The standard securities account (CTO)

No cap or eligibility constraint, but full taxation: the 31.4% flat tax (PFU) since 1 January 2026 (12.8% income tax + 18.6% social levies, after the CSG rise from 9.2% to 10.6%). Opting for the progressive scale remains possible if more favourable.

Life insurance

After 8 years: annual allowance of €4,600 (€9,200 for a couple) on withdrawn gains, then 7.5% income tax + 17.2% social levies = 24.7%. Important verified point: life insurance is excluded from the 2026 CSG increase, its social levies stay at 17.2% (not 18.6%). Before 8 years: 30% flat tax.

Accumulating or distributing ETF in France?

• In a PEA or life insurance: dividends aren't taxed as long as they stay in the wrapper. So accumulating or distributing matters little for tax.
• On a CTO: dividends from a distributing ETF are subject to the 31.4% flat tax each year. The accumulating one lets you defer this taxation.

Source: impots.gouv.fr.

Frequently asked questions

What is the best account for investing in ETFs in France?

The PEA is the most tax-efficient after 5 years (18.6% social levies only, no income tax), but is limited to eligible ETFs and capped at €150,000.

What is the flat tax on ETFs in 2026?

The flat tax (PFU) has been 31.4% since January 2026 on a securities account: 12.8% income tax + 18.6% social levies.

Was life insurance affected by the 2026 CSG increase?

No. Life insurance is excluded from the increase: its social levies stay at 17.2%, i.e. 24.7% after 8 years (with allowance).