Understand everything you need to invest with peace of mind in PEA-PME

Investing in PEA-PME may or may not appeal to you! Whether you're already familiar with the subject or a complete novice, this article is for you! It will help you understand what it is, its advantages and disadvantages, discover its attractive tax system, and, above all, learn how to invest through this system on Enerfip.

What is a PEA-PME?

Before getting into the heart of the matter, let us explain the basics of the PEA-PME in a few lines!

Signifying Share Savings Plan for Small and Medium-Sized Enterprises, the PEA-PME is an investment product that encourages the financing of French and European SMEs and mid-sized companies (ETIs). This securities account, accessible to anyone domiciled in France, allows you to manage a portfolio of European stocks while benefiting from tax advantages. Created with the 2014 Finance Act, the PEA-PME allows you to support the local economy by investing your savings in innovative companies.

What are the advantages and disadvantages?

Like any investment, the PEA-PME has advantages and disadvantages. Before you get started, let us present them to you.

On the advantages side, the PEA-PME offers attractive taxation (as you will discover a little further down, in the next paragraph), but that's not all! It also encourages you to support the real economy: that of innovative, dynamic, and European SMEs and mid-cap companies. Investing in PEA-PMEs in this type of project can result in good performance, even if the main drawback lies in the risk of capital loss. Less liquid than those of large companies, the securities accessible through PEA-PMEs remain a great opportunity to diversify your portfolio. Complementary to investments accessible through traditional PEAs, they allow you to vary your investments while optimizing your taxes.

What is the tax treatment of PEA-PMEs?

You may not know this, but the tax treatment of PEA-PMEs is advantageous if you respect a minimum holding period of 5 years. Based on the plan's seniority, the PEA-PME system allows you, once this date has passed, to be exempt from income tax on your gains such as capital gains and dividends. All you have to do is pay social security contributions of 17.2%.

However, if you make a withdrawal before 5 years, your earnings will be subject to tax.

• If you choose the PFU (single lump sum withholding tax), also known as the flat tax, you will be taxed at 30% (12.8% income tax and 17.2% social security contributions).
• If you choose the progressive scale, your taxes will vary according to your tax bracket, each corresponding to a different tax rate between 0% and 45%. To this, you will need to add 17.2% social security contributions.

What is the difference between a classic PEA and a PEA-PME?

You may have already confused them, but they are two different schemes in terms of possible investments, payment limits, and the level of risk involved. Investing in a PEA-PME, unlike a simple PEA, allows you to invest only in Small and Medium Enterprises (SMEs) and Intermediate-Sized Enterprises (ETIs). As for securities, you have the option of choosing between stocks, convertible bonds, or dedicated funds. While more dynamic, this type of investment is nonetheless risky, as SMEs and ETIs are more sensitive to economic uncertainties than a well-established company (accessible via PEA). Even if this choice seems more adventurous, it can reveal some nice surprises given the dynamism of the market! By choosing more for smaller, more innovative, or even local business models, you support the local economy and thus give meaning to your savings. To encourage you in this process, the PEA-PME benefits from a higher ceiling, set at 225,000 euros, unlike the classic PEA set at 150,000 euros.

How to invest in PEA-PME with Enerfip?

For certain fundraisings on our responsible investment platform dedicated to renewable energies (RE), you can invest via your PEA or your PEA-PME. To guide you through this process, Enerfip invites you to consult our documentation (located in the Help Section): How to invest through PEA or PEA-PME with Enerfip? However, since we're nice, we offer you a quick summary of the key points to remember when investing through your PEA-PME on Enerfip.

1. Check the eligibility of the operation on the chosen fundraising, because not all are compatible with an investment through a PEA-PME. To find out, simply select the "Accessible via PEA/PEA-PME" option in the project page's features.
2. Open a PEA-PME with your bank.
3. Enter the PEA/PME's bank details (RIB) in the member area.
4. Transmit the information relating to your subscription to your bank advisor.
5. Keep track of your transactions, as banking delays can be long. The most effective option is to anticipate your request with your bank advisor to ensure that your subscription is processed correctly.
6. Finalize your investment as soon as the funds are transferred from your PEA-PME and obtain your subscription certificate.

Now, you have no reason to be lost when it comes to this type of investment. At Enerfip, we make the process as simple as possible so that responsible investing is accessible to everyone. However, if you encounter any difficulties or have any questions, don't hesitate to contact us. Our dedicated team will be happy to help you with your green investment projects.