Financial Investment
Savings and Investment
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Life Insurance: A key savings tool in France, allowing investment in financial markets with tax benefits, particularly for inheritance, and flexible fund availability.
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Capitalization Contract: Similar to life insurance in function and flexibility, but with notable differences in subscription, division, and conclusion.
Portfolio Management of Securities
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Equity Savings Plan (PEA): A regulated savings product with a cap of €150,000, offering access to European company shares, ETFs, and investment funds with favorable tax conditions.
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PEA-PME: Adds an additional €75,000 to the initial PEA cap, targeting small and medium-sized enterprises (SMEs).
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Ordinary Securities Account (CTO): Offers a broader investment scope (international shares, bonds, ETFs, investment funds, derivatives, commodities) without a cap and no tax benefits.
Tax Reduction and Retirement
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Article 154 bis Retirement Savings Plan: Similar to Article 163, available only to self-employed workers with different contribution deductibility limits.
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Article 163 Retirement Savings Plan: For employees and self-employed, allowing tax-deductible contributions for retirement preparation, with funds accessible only after retirement (except under specific conditions).
- Innovation Mutual Funds (FCPI): Innovation Mutual Funds are collective investment vehicles in stocks, convertible bonds, and current accounts of innovative SMEs. Subject to a holding period and within a certain limit, they allow for a tax reduction ranging from 18% to 30% (subject to conditions, with the rate periodically reviewed). These unlisted assets are notably found in Private Equity, via a CTO, a PEA, a PEA-PME (depending on the fund's eligibility), or within a life insurance solution.
- Proximity Investment Funds (FIP):
Similar to FCPI but focused on regional SMEs, with tax benefits under specific criteria.
- SOFICA:
French tax incentive for investments in the film and audiovisual industry, offering tax reductions between 30% and 46%.
- Forest Investment Groups (GFI):
A specific type of civil company focused on investment in the forestry sector aims to acquire wooded or reforestation lands. This type of investment can be made either by subscribing to shares of forestry groups or forestry savings companies, or directly. Such an investment allows for a tax reduction within certain limits and requires a longer holding period for direct investments. The sale of shares is subject to the capital gains tax regime for individuals. The shares also benefit from an exemption from the Wealth Tax (IFI) up to a certain limit, as well as exemptions from inheritance and gift taxes under certain conditions.
- Groupement Foncier Forestier (GFF):
A special type of civil company subject to the fiscal transparency regime (income is taxed at the partner level), with asset management, administrative, and financial management entrusted to a manager, who can be either a third party or one of the partners. The company's activities focus on the management, exploitation, and conservation of forested areas. By purchasing shares, each investor becomes an owner of part of the group's assets and receives a proportionate share of the income generated from the exploitation of these assets. This investment qualifies for attractive tax regimes (within certain limits), characterized by tax reductions and exemptions from gift duties under certain conditions.
- Viticultural Investment Groups (GFV): A non-operating civil company enables partners, whose contributions finance the acquisition, to collectively own a vineyard estate managed by an operator. The capital is divided into shares subscribed by individual partners. The annual income, after deducting management fees and taxes, can be received in cash or in kind, in the form of wine bottles valued at production cost. This income is considered rental income, taxed under the micro-property regime or the actual regime. The capital gains generated are subject to the real estate capital gains regime. The shares held are exempt from Wealth Tax (IFI) up to a certain limit. In the event of inheritance or donation, the shares are exempt from duties under certain conditions.
Employee Savings
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Enterprise Savings Plan (PEE):
A collective savings product that allows employees and managers of small businesses to purchase securities with the assistance of the company. The funds are inaccessible for at least five years, except in exceptional cases. It can be implemented at the company level, within a group of companies (Group Savings Plan, PEG), or among several companies not belonging to the same group (Intercompany Savings Plan, PEI). It must be open to all employees and can be retained in the event of contract termination, subject to certain conditions. Voluntary contributions are capped, except in exceptional cases. It can be supplemented by additional company contributions, known as matching contributions, within a certain limit. The company can also contribute in the absence of employee contributions.
- Company Retirement Savings Plan (PERECO): An optional company savings product that allows all employees of a company and managers of small businesses to build up supplementary retirement savings. The invested amounts are paid out upon retirement. Withdrawal options vary depending on the compartment (individual, collective, or mandatory). Each compartment has specific tax and social contribution rules. Early withdrawal for the purchase of a primary residence is only applicable to savings from voluntary or collective contributions. The amounts contributed are exempt from social security contributions but subject to CSG and CRDS based on earned income.
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