Published by: Elise Caradec — Editor specializing in stock exchange
The Young AEP allows a major attached to the tax home of his parents to invest in the stock exchange, with a ceiling of 20 000 €. Its interest: start building a portfolio and benefit, after five years, from an income tax exemption on earnings. But this investment is not guaranteed and is suitable for money you do not need in the short term.
Check eligibility before choosing a bank
Created by the Pact law in 2019, the Young AEP is a declination of the share savings plan for young adults who are tax related to their parents. It is neither a booklet nor an account opened on behalf of the parents: the young person holds his own plan and decides on its investments, unless managed by a professional.
Age, studies and fiscal linkages go together
Opening is possible from the age of 18, subject in particular to being domiciled taxably in France. Parental attachment generally applies to young people under 21 years of age, or under 25 years of age when they continue their studies, depending on the applicable tax conditions. Commercial expression « 18-25 years » therefore does not mean that all young people in this age group are automatically eligible.
A young asset already detached from the parental tax home can open a classic PEA rather than a Young PEA. On the other hand, being a student is not enough: one must also be effectively connected. The PEAs which may be held by the parents do not prevent the opening, since the ceiling of the young person is distinct from their own.
Tax Detachment does not reset the meter to zero
When the holder ceases to be attached, his plan becomes a conventional AEP, with a ceiling of payments increased to 150 000 €. Payments already made remain recorded and tax seniority is retained. The change must be reported to the institution and the supporting documentation requested, rather than closing the plan to open another.
If your situation changes in the course of the year, please specify the necessary documents and the date of account taken by the bank. The passage of a birthday should not lead to the hasty closure of a plan that can be retained.
Understanding what happens to payments and securities
The Young Banking PEA includes a cash account, which receives payments and liquidity, and a securities account, which records the investments. So paying money does not automatically mean buying shares: in open management, you must then place a stock exchange order.
The ceiling of 20,000 € refers to payments, not the value of the portfolio. If investments progress and dividends accumulate, the plan may exceed that amount without infringement. Gains retained in the envelope are not new payments.
Actions and funds: check eligibility, then diversification
You can purchase European shares that comply with the rules of the PEA, as well as eligible collective investment undertakings and ETFs. Not all funds are: check this feature on their documentation and in the broker's interface. Some eligible ETFs allow exposure to international markets beyond European companies.
To choose a fund, look at the following index, current costs, main positions and concentration risk. Holding several ETFs does not guarantee a good diversification if they own the same large companies. Read the key information document before investing.
Management under mandate can be proposed depending on the institution: a professional makes the choices within the agreed framework. It provides a delegation, not a guarantee against losses, and its costs may add to those of the media.
Withdrawals and taxation: distinguishing between selling and getting out money
The five-year tax period begins with the first payment, not just the signature of the contract. You can sell a security and keep the proceeds of the sale on the cash account without withdrawing. It is the release of money from the EAP that triggers the corresponding tax consequences.
| Time of withdrawal | Normal consequence | Taxation of earnings |
|---|---|---|
| Before five years | Closure of the plan, except for regulatory exceptions | 12.8 % of income tax, except for the option applicable to the scale, and social contributions |
| After five years | Partial withdrawal without closure; possible new payments within the ceiling | Income tax exemption; social contributions maintained |
With social levies of 18,6 %, the flat-rate taxation before five years reached 31,4 % the winnings concerned. These rates must be verified at the time of the transaction, as regulation may change. Taxation does not cover the entire withdrawal: paid-up capital is not a gain.
Exceptions exist at closure before five years, particularly in certain personal or professional situations provided for in the regulations. They do not all mean a tax exemption. Prior to early withdrawal, ask the institution for confirmation of your treatment.
Finally, five years constitute a tax threshold, not an assurance to recover its bet. For a portfolio in shares, a horizon of 8 to 10 years is more coherent, without removing the risk of capital loss.
Choose investment by project, not just taxation
The Young AEP is used to invest in the long term. A security deposit for accommodation, education or a reserve for contingencies must remain on an available and secure savings. These goals may coexist: you don't have to choose a single product for all your money.
| Placement | Main use | Point of vigilance |
|---|---|---|
| PEA Young | Investment in long-term shares | Possible loss and mandatory withdrawals within five years |
| Traditional PEA | Same logic after tax detachment | Limit of 150,000 €, without capital guarantee |
| Young Booklet | Secure and available savings | Limited ceiling and age conditions |
| Common securities account | Access to a wider investment universe | No PEA-specific exemption after five years |
| Life insurance | Combination of media by project | Fees, taxes and risks vary according to the medium |
The least visible danger is the domino effect: an unanticipated expense forces to sell for a drop, then withdraw before five years, which can result in closure and taxation. A separate security reserve cuts this chain. It also protects your ability to wait, a concrete advantage when markets go through a bad time.
Compare the costs and prepare an opening without precipitation
BoursoBank offers an offer for young people attached to the tax system. To compare with other banks or brokers, explicitly check that they accept the Young EAP: proposing a classic EAP is not enough. See the conditions in force, without limiting yourself to an opening premium.
There are several regulatory fee caps: 10 € For opening, 0.5% for dematerialised transactions and 1.2 % by another means, within the scope provided by the texts. Thus, an online purchase of 100 € means not more than 0.50 € where this ceiling applies.
Account keeping or custody costs are also regulated, with up to 0.4% of the cost and per line increases depending on the securities. Also compare the costs of the funds, the possible costs of inactivity, the minimum order and the conditions of transfer.
- Prepare an identification document, a proof of residence, your bank details and the tax attachment documents requested.
- Complete the financial knowledge and experience questionnaire with sincerity.
- Read the convention and tariff brochure before signing.
- Make the first payment, then check its registration.
- Before the first purchase, check the title, its ISIN code, eligibility, amount and estimated costs.
Start with an amount compatible with your budget, without trying to quickly fill the ceiling. The aim is to build a sustainable method, not to multiply operations.