From the tax point of view, Pea is a very attractive investment package, but it has remained unavailable to adult children still living with their parents. Fortunately Young pea.
➡️ But how does Pea Jeune work? What is his taxation? And where to find it? We call you everything!
The Pea Youth in short
- Allows PEA opening in the Tax Home.
- Earnings exempt from taxes.
- After 25 years it automatically turns into Pea.
- Low fees, limited by law.
- Free payments.
- Only European titles.
- Ceiling only € 20,000.
- No short sales or derivatives.
Overall, Pea Jeune is a good solution for waiting if you are a student and are still connected to your parents’ tax household. Or if your child has not yet rehearsed and wants to go to the stock exchange.
Pea Jeune, founded on August 24, 2019 by the law of Pacte, is an almost confirmed copy of the classic Pea. The most significant difference is its ceiling of EUR 20,000 in payments compared to EUR 150,000 for Pea. Let’s look in more detail how it works. 👇
What are the conditions for opening Youth Pea?
🔎 To get entitled to yououth pea, you must be in a specific situation:
- Be at the age of 18 to 25 years.
- You must be connected to your parents’ tax household or legal representatives.
➡️ And after the age of 25, if your child has YouTh Pea, it automatically turns into a classic Pea, retaining its tax history.
Please note that after the age of 25. In this case, there is no age.
What titles are eligible for Pea Jeune?
Like normal Pea, Young Pea is limited to European Union events. Although it is eventually possible to invest worldwide with PEA thanks to ETF. 😉
Indeed, the ETF allows you to replicate the stock index, such as the famous CAC 40. But also the most important international stock indices such as NASDAQ or MSCI World. In this way, you can build a well -diversified portfolio invested in and outside Europe.
Finally, be aware that ETF has the advantage of very low fees: for the best ETF, count on annual fees between 0.10 % and 0.60 %.
Fees for young Pea
✅ As with his great brother, the cost of a young Pea is limited:
- To open Pea Jeune : maximum 10 €.
- Transaction fees It must not exceed 0.50 % of the order amount if it is made online. Otherwise, 1.20 % in any other way (telephone, mail, etc.).
- Guardianship rights (or account management fees) must not exceed 0.40 % of the total value of your portfolio and 5 euros per line.
Therefore, it is preferable to choose your Pea Jeune among the best online brokers to benefit from the lowest possible transaction fees. In addition, they are maximum costs, but some are even cheaper!
Taxation of Young Pea
In this article we describe in detail the taxation of Pea. But for a reminder:
- 5 years ago : profits and capital gains, which you deduct from your Pea, are subject to either IR or a flat tax of 30 %, which consists of 17.20 % of social security contributions and 12.80 % of capital tax. Any withdrawal also results in the closure of Pea.
- After 5 years : You only have to pay social levies and Pea is not closed.
💡 In short, like any tax envelope that offers benefits after a certain period of time, we invite you to determine the date as soon as possible. Although it means to invest only a minimum at the beginning, or even use DCA strategy with small amounts.
And to help you find the right Pea Jeune, we compared the best available online. 👇
Our comparison of the best young people Pea
| Direct exchange | Ease | Bourgeois | |
| PEA |  |
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| Pea |  |
 |
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| Young pea |  |
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| Formula | ON | Expert | Trade |
| Inactivity | 0 € 0 | 6.95 €/month without a transaction | 5,95 €/month without a transaction |
| Selection fees | 6 € | 0 € 0 | 0 € 0 |
| Mediation fees | 0–500 €: 0.99 € 500–1000 €: 1.9 € 1000-2000 €: 2.90 € 2000-4400 €: 3,80 € > 4400 EUR: 0.09 % |
9 € for order up to € 5,000 12 € between € 5,000 and € 10,000 Then by 0.20 % further |
From 100 EUR to 7 750 EUR: 16.65 euros or max. 0.5 %. > 7550 €: 0.22 % |
| Examples of fees | |||
| For € 500 | 0.99 € | € 2.50 | € 2.50 |
| For € 1,000 | 1,90 € | 5 € | 5 € |
| For 2,500 € | 3,80 € | € 9 | 12.50 € |
| For € 5,000 | £ 4.50 | € 9 | 12.50 € |
| For € 10,000 | € 9 | 12 € | 22 € 22 |
| Adding/selling units of securities | 300 € | 1.2 % (max. EUR 50) | 1.2 % (max. 500 euros) |
| Ergonomics | Complex | Repair | Repair |
| In short | The cheapest broker. | For safety. | Overall too expensive |
| Detailed review | A direct overview of the stock exchange | EASYBOUSE reviews | Boursorama’s opinion (Pea and Securities Account) |
| Access to the offer | Direct scholarship: offered 200 euros offered | EASYBOUSE: 50 orders offered | Boursorama |
➡️ Our conclusion is clear: Bourse Direct Youth Pea is currently the cheapest. But its interface is not necessarily the most practical for use. We will tell you more in our comparison of the best online brokers.
Differences between Pea, Pea-Pme, Pea Jeune and Securities Account
| Young pea | PEA | Pea | Valuable account | |
| for whom? | 18 – 25 years old Attached to their parents’ tax household |
Natural person Main 1 per person 2 max. For household tax |
Natural person Main 1 per person 2 max. For household tax |
A natural or legal person The main or side Unlimited number and the possibility of establishing a common account |
| Payment limit | € 20,000 | € 150,000 | 225 000 € Shared with Pea |
Unrestricted |
| Eligible titles | only European stocks | only European stocks | Only securities of European small and medium -sized enterprises and eti | All |
| Taxation | 5 years ago : equal tax of 30 % or IR After 5 years : Only PS (17.20 %) or IR |
5 years ago : equal tax of 30 % or IR After 5 years : Only PS (17.20 %) or IR |
5 years ago : equal tax of 30 % or IR After 5 years : Only PS (17.20 %) or IR |
A flat tax (30 %) or IR |
| Functional | Any download 5 years ago has a closure Transformed into Pea after 25 years or after separation from the Parents’ Tax Home |
Any download 5 years ago has a closure | Any download 5 years ago has a closure | Release |
| Payment obligation? | No | No | No | No |
| Costs | Limited by law | Limited by law | Limited by law | Release |
Conclusion: Should you open Youth Pea?
✅ Finally, in our opinion, it is relevant to open yououth pea in the following cases:
- If your adult child is connected for tax purposes to your house.
- You want to take a date and plan a long -term strategy.
- You want to diversify your investments, for example, using ETF.
- Take advantage of limited fees, even lower for the best brokers.
➡️ Do you want to invest in the stock market, but don’t dare? So watch our free 7 -day training and learn the basics!
What are the alternatives to Pea Jeune?
Pea Jeune is a good tax package but has its limits. So for young adults who want to control their personal finances, there are other alternatives to Pea Jeunes.
Current Securities Account (CTO):
✅ its main advantage is that it fits Absolutely all kinds of financial support : shares, bonds, ETF, SCPI etc…
In addition, there are no age conditions (you can open it for your minor child), no ceiling, and it is possible to establish common or mass accounts of securities. Finally, you can own how much you want.
➡️ We will tell you more in this article: title account: Operation & Comparison.
Life insurance
✅ Another attractive tax package, life insurance, is the real Swiss army knife savings. It allows you to invest in safe funds such as Eurofond, but also stock funds or even real estate. In addition, you can arrange life insurance for your child at any age and, like the CTO, is not limited by the number of contracts you may have.
Likewise, life insurance offers a number of tax benefits:
- After 8 years, earnings use a discount of EUR 4,600/year, which is exempt from capital revenue tax.
- The recipients of your life insurance may take advantage of a discount of 152 500 euros, which is exempt from inheritance tax for payments made before the age of 70 years.
- Life insurance taxation is explained in detail in this article.
➡️ But beware, not all life insurance contracts are equal. That is why we tested and compared the best life insurance in this article.
Youth
👉 Brochures are still necessary to achieve savings in availability. And one of the best -regulated brochures is the Youth brochure.
In fact, it is accessible to persons aged 12-25 years and offers reward at least the equivalent brochure and (and thus LDDS). When the rates were low, it was even a savings account that offered the best revenues with your favorite savings account (LEP). But from rates growth is a savings account for young people generally offered with yield 3 % without tax.
➡️ If you have already reached the LIVRET and and LDDS ceiling, Livret Jeune will allow you to invest another EUR 1,600 with equivalent interest. However, keep in mind that once you reach the age of 26, the young account is automatically closed and the amounts held are paid to the holder’s current account.
Frequently asked questions
Pea Jeune is a securities account reserved for people aged 18-25 years, which allows you to invest in the European Union shares.
On the contrary, a youth brochure is a regulated and safe brochure that is accessible to persons aged 12–25 years. Its ceiling is only 1,600 euros, but its reward cannot be lower than Livret A. It is therefore one of the best Livret available in France.
Your young Pea automatically turns into a normal Pea after you will be 25. It retains its tax priority and its payment ceiling increases from EUR 20,000 to 150,000.
Pea Jeune is quite difficult to find because it eventually focuses on the gap. However, it is very easy to open it online, for example at Bourse Direct, EasyBours or Boursobank.
If you want to open a young Pea, you have to meet two conditions: to be 18 to 25 years old and still be connected to the tax household of your legal representatives.
Like traditional Pea, Young Pea allows you to invest only in stocks in the European Union. However, this limit can be bypassed by using the ETF in your Pea.
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