Getting Started with your Plan Épargne en Actions (PEA)

Please note the following crucial information regarding your PEA account:

• Investments can involve monetary gains and losses. This means the value of your investments can go down as well as up, and you could lose the money you invest.
• Trading has a volatile nature. The value of your securities and ETFs can fluctuate significantly due to market conditions.
• Any information related to tax matters provided by N26 is solely for pure information purposes. It is legally non-binding information or risk guidance. Tax obligations relating to the PEA Account are incumbent on Upvest, as the PEA Account managing entity. 
• N26 does not provide any guidance on trading or investment advice. Our customer service specialists are strictly prohibited from offering any recommendations or advice regarding your investment decisions or trading strategies.
• We are not permitted, under any circumstances, to receive investment orders via chat or phone. If you make such a request, we are obliged to decline it.
• It is essential that you make your own investment decisions based on your personal financial situation, risk tolerance, and understanding of the product.

A PEA (Plan d’épargne en actions in French) is a regulated savings product that allows you to invest in a portfolio of European company securities, offering a tax-advantageous environment, subject to certain conditions.

You can open a PEA if you are a French tax resident, an adult (over 18 years old), not dependent on another taxpayer's household, and you do not already hold a PEA with another institution.

N26 Bank SE and Upvest Securities GmbH have partnered to offer you a PEA account. Specifically, N26 Bank SE provides you with the N26 App interface to manage your PEA and transmits your buy and sell orders related to your PEA to Upvest Securities GmbH. 

Upvest Securities GmbH is the managing entity of your PEA account (which is composed of a securities account, and a linked cash account), executes your orders, and provides securities custody service.

Yes, your deposits on the cash account of your PEA with Upvest are covered by the German Deposit Protection Scheme of Deutsche Bank AG up to EUR 100,000. It's important to note that this does not count towards the EUR 100,000 allowance of your protected deposits at N26. You can find more details in the Terms and Conditions of Upvest Securities GmbH for the PEA Account.

Yes, you can make deposits on your PEA account up to EUR 150,000.

With a PEA, you can only invest in eligible securities, such as shares of companies listed in the European Union and collective investments (like UCITS) that are invested at least 75% in shares and equivalent securities within the European Economic Area. At the moment, you may invest in eligible ETFs available in the N26 App, and we plan to provide you with more PEA eligible securities in the future.

The PEA tax regime is advantageous. Firstly, you can benefit from an income tax exemption (excluding social security contributions of 17.2%) on net gains from your PEA investments, provided you made no withdrawal for a 5-year period starting from your first deposit. 

Secondly, during the term of your PEA, arbitrage and income received within your PEA do not trigger immediate taxation. Taxation only applies upon withdrawal or closure of the PEA.

The date of your first deposit is the opening date of your PEA.

Yes. When filing your income tax return, French tax authorities require you to declare any foreign account you opened, held, used, or closed during the past fiscal year. As your PEA account is with Upvest Securities GmbH in Germany, you must report it by filling out tax form no. 3916-3916 bis, accessible directly on your online income tax return (form no. 2042).