French Executive PER 2026: Tax Deduction, Ceilings and Exit Strategy

Updated 25 May 2026 — Reviewed by Samuel Hayot, chartered accountant (expert-comptable), Paris Bar.

The Plan d'Épargne Retraite (PER), introduced by the PACTE Act of 22 May 2019 and codified under articles L224-1 et seq. of the French Monetary and Financial Code, is now the dominant long-term savings vehicle for French business executives. Its core mechanic is straightforward: contribute today, deduct today, pay tax later at retirement. In practice, the real value depends on three factors most executives fail to calibrate precisely — the ceiling applicable to their legal status, the differential between today's marginal tax rate (TMI) and the expected rate at retirement, and the choice of exit mode.

Direct answer. In 2026, a self-employed executive (TNS) at a 41% marginal rate can deduct up to approximately 35,194 € in PER contributions (enhanced Madelin ceiling) and save up to 14,430 € in income tax in the year of contribution. An executive treated as a salaried employee (SASU president) benefits from a similar ceiling — approximately 37,094 € — but without the 15% uplift on the intermediate bracket. The device is genuinely advantageous only if your tax rate at retirement will be lower than your current rate — which is true in the vast majority of active executive files we handle.

Since the PACTE Act, the former Madelin contract, PERP, PERCO and Article 83 contracts have been consolidated into three unified envelopes.

Our reading. For a SARL or SAS director with employees, combining a personal PERin with a company PERCOL (with employer matching) is typically the most efficient configuration: the director maximises the personal ceiling through the PERin, while employer matching paid into the PERCOL is deductible as an operating expense and exempt from income tax for all beneficiaries within statutory limits.

The tax treatment of voluntary contributions is governed by article 163 quatervicies of the French General Tax Code. The distinction between self-employed status (TNS) and salaried-equivalent status is critical.

Salaried-equivalent executives (SASU presidents, minority SARL managers)#

The annual deduction ceiling equals 10% of net taxable remuneration, capped at 10% of 8 times the Annual Social Security Ceiling (PASS).

• PASS 2026: 46,368 € (verify against Urssaf for any mid-year adjustment)
• Maximum ceiling 2026: 10% × 8 × 46,368 € = 37,094 €
• Minimum floor: 10% × PASS = 4,637 €

Self-employed executives — TNS (majority SARL managers, sole traders, EI)#

The enhanced Madelin regime, integrated into the PER since 2019, provides a higher ceiling:

• 10% of taxable profit (BIC, BNC, or management remuneration) up to 10% of 8 PASS
• + 15% of the profit bracket between 1 PASS and 8 PASS

For taxable profit of 70,000 €:

• Bracket 1: 10% × 70,000 € = 7,000 €
• Bracket 2: 15% × (70,000 € – 46,368 €) = 3,545 €
• Total ceiling: 10,545 €

2026 watchpoint. Unused ceilings from the previous three tax years (2023, 2024, 2025) carry forward and add to the current year's ceiling. The available amounts appear on your annual tax assessment under "Informations". If you changed legal status during those years (e.g., from TNS to salaried executive), the ceiling for each year is calculated under the regime that applied that year.

The PER arbitrage rests on one comparator: your current TMI vs your anticipated TMI at retirement.

The underestimated risk. Many executives estimate their retirement income will be modest and project a low future tax rate. In practice, if you draw capital across several years, each annual tranche stacks against any rental income, SCI dividends, or a spouse's income. The real exit TMI can be higher than expected. A multi-year exit simulation before saturating the ceiling is essential.

Profile: SASU president, net taxable remuneration 95,000 €, TMI 41%, available PER ceiling 38,000 € (including carry-forwards from 2023–2025).

• Contribution to PERin in December 2026: 20,000 €
• Reduction in 2026 taxable base: 20,000 €
• Income tax saving at 41%: 8,200 €
• Net cost of contribution: 20,000 – 8,200 = 11,800 €

At exit (assuming 30% TMI on capital withdrawal):

• IR on the contributions fraction at exit: 20,000 × 30% = 6,000 €
• Social charges (prélèvements sociaux) on capital gains: 17.2%
• Net gain from the deferral mechanism: 8,200 – 6,000 = minimum 2,200 €, before the return generated on the assets during the accumulation phase

This differential increases substantially with the investment horizon and the performance of the selected funds — which is why starting early, even with modest contributions, creates compounding value.

The exit from a PER is not tax-neutral. Capital vs annuity is a long-term patrimonial decision.

Capital withdrawal#

• The fraction corresponding to previously deducted contributions is subject to the progressive income tax scale (no flat tax / PFU available on this fraction)
• Capital gains are subject to social charges of 17.2% (not the 30% flat tax)
• Withdrawals can be staged across multiple years to limit the impact of the progressive scale — this is usually the approach we recommend for executives with significant PER balances

Life annuity (rente viagère)#

• Subject to income tax after a 10% standard deduction within an annual cap (same regime as a standard pension)
• Social charges apply to the fraction representing capital gains
• The annuity is irreversible: the remaining capital cannot be recovered on early death (except under a reversionary arrangement)

Our reading. For the majority of executives we advise, a staged capital withdrawal over 3 to 5 years — calibrated to stay below the next marginal rate threshold — proves more tax-efficient than the annuity. The annuity is worth considering for executives with a long life expectancy or no direct heirs.

Article L224-4 of the Monetary and Financial Code lists six authorised early release events:

1. Purchase of primary residence — the only non-accident event; contributions taxed under IR, capital gains under social charges
2. Second or third-category invalidity (policyholder, spouse, children)
3. Death of spouse or PACS partner
4. Expiry of unemployment insurance rights
5. Personal over-indebtedness (on commission request)
6. Cessation of self-employed activity following judicial liquidation

In practice. Early release for primary residence is frequent among younger executives who opened a PER early. We advise including the tax impact of the release in the property financing plan: the released sum is added to the year's income and can push you into a higher bracket if timing is not managed carefully.

Executives who held a Madelin contract before 2019 often retain it alongside a new PERin. The Madelin contract is closed to new contributions but continues to generate returns on vested rights. The two envelopes coexist until retirement.

The tax treatment at exit differs slightly for rights vested under the old Madelin regime versus rights accumulated in a PER post-2019. A full audit of both envelopes — amounts, exit conditions, beneficiary clauses — is essential before making any withdrawal or transfer decision.

The PER does not operate in isolation. It fits within a broader set of decisions:

• Associate current account (compte courant d'associé) vs PER: the associate account provides immediate liquidity but no tax benefit on contribution. The PER is less liquid but generates an immediate income tax saving. Read: Associate Current Account: Tax Treatment and Optimisation
• Continued employment after retirement: if you plan to keep working after drawing your pension, the PER exit can be optimised within that framework. See: Cumul emploi-retraite: contributions and rights 2026
• Comprehensive wealth strategy: PER, assurance-vie, SCI, holding — the allocation between envelopes depends on your horizon, TMI, and transmission objectives. See: How to Optimise Your Executive Wealth

• Check your 2025 tax assessment for carry-forward PER ceilings (2023, 2024, 2025)
• Confirm your exact legal status: TNS (enhanced Madelin ceiling) or salaried executive (standard ceiling)
• Model your current TMI vs anticipated retirement TMI before committing
• Assess whether a PERCOL or PERO is feasible in your company (employer matching deductible as business expense)
• Select PER investment supports with care: euro funds vs unit-linked depending on your horizon
• Plan your exit mode (staged capital or annuity) at least five years before retirement
• If you hold a legacy Madelin contract: audit vested rights before any transfer or liquidation decision
• Consult your expert-comptable or wealth adviser before any exceptional contribution

This article is written for information and educational purposes. It does not constitute personalised advice or an investment recommendation. The tax and social rules described are applicable as at 25 May 2026 and are subject to change. An analysis of your specific situation, documents, and applicable law is required before any decision. Sources: article 163 quatervicies CGI, articles L224-1 et seq. of the Monetary and Financial Code, Bofip, impots.gouv.fr.