French Retirement Savings Plan (PER) 2026: Tax Benefits & Strategies for Company Directors

Preparing for retirement is a major challenge for company directors and self-employed workers, whose basic state pension is often lower than that of employees. The 2019 PACTE Act profoundly simplified the French supplementary retirement savings landscape by creating the Plan d'Epargne Retraite (PER), which replaced previous products: PERP, Madelin contracts, PERCO and article 83 plans.

In 2026, the PER has established itself as the reference product for building a supplementary retirement while benefiting from an immediate tax advantage. For TNS directors, it represents one of the best available tax optimization levers.

This comprehensive guide explains how the PER works, its tax advantages, exit conditions, and strategies adapted to company directors.

The 2019 PACTE Reform

The PACTE Act (Plan d'Action pour la Croissance et la Transformation des Entreprises), adopted in May 2019, created the PER from 1 October 2019 for new products, and allowed the transfer of previous products until 1 October 2020.

Objective: to simplify and harmonize supplementary retirement savings regimes, which were previously fragmented into numerous products with incompatible rules.

What the PER Replaces

Compartment 1: Voluntary Contributions (Individual PER)

The first compartment receives voluntary contributions made by the holder. This is the core of the individual PER (formerly PERP/Madelin). These contributions can be deducted from taxable income within legal limits.

Compartment 2: Employee Savings (Collective PER)

The second compartment groups amounts from:

• Profit-sharing (interessement) and participation;
• Employer matching contributions (abondements);
• Transfers from a PERCO.

These contributions are generally not deducted from taxable income (they benefit from other tax and social exemptions at the time of payment).

Compartment 3: Mandatory Contributions (Categorical PER)

The third compartment receives mandatory employer and/or employee contributions under a company categorical retirement scheme (formerly article 83). These amounts are not available before retirement (except in early withdrawal cases).

Deduction Cap for Employees

Voluntary contributions to compartment 1 are deductible from taxable income up to the individual deduction cap, which is the higher of the two following amounts:

• 10% of prior-year net professional income, capped at 10% × 8 PASS = 10% × 8 × 47,100 € = 37,680 € for 2026;
• 10% of prior-year PASS = 10% × 47,100 € = 4,710 € (minimum applicable even without income).

Example: An employee receiving net income of 60,000 € in 2025 can deduct up to 10% × 60,000 € = 6,000 € in PER contributions in 2026.

The cap is pooled at household level. It must be reduced by contributions paid to other mandatory supplementary retirement schemes (article 83).

Enhanced Deduction Cap for Self-Employed Workers (TNS)

Self-employed workers (TNS) benefit from a more favorable deduction cap, calculated as follows:

• 10% of taxable profit up to 8 PASS, plus;
• 15% of the portion of profit between 1 PASS and 8 PASS.

Example: TNS with prior-year BIC profit = 100,000 €:

• 10% × 100,000 € = 10,000 €
• 15% × (100,000 € - 47,100 €) = 15% × 52,900 € = 7,935 €
• Total cap: 17,935 €

This superior advantage makes the individual PER a major optimization tool for high-income self-employed workers.

Capital Exit

A capital exit is possible (unlike former PERPs) for compartments 1 and 2:

If contributions were tax-deductible:

• The capital portion corresponding to contributions is subject to income tax (IR) (as a pension);
• Capital gains are subject to PFU of 30% (12.8% IR + 17.2% social contributions).

If contributions were not tax-deductible:

• The capital portion corresponding to contributions is exempt from IR;
• Capital gains are subject to PFU of 30%.

Annuity Exit

The annuity is subject to IR in the pension and retirement income category (with a 10% deduction, capped), net of social contributions:

If contributions were deductible: annuity fully taxable as pension income. If contributions were not deductible: annuity partially exempt according to life annuity purchase tables.

Advice: For many TNS directors, a staggered capital exit (progressive withdrawal over several years) allows smoothing of taxation and remaining in low marginal tax brackets at retirement.

The PER provides six cases of early withdrawal before retirement age (article L. 224-4 of the Monetary and Financial Code):

1. Death of the spouse or PACS partner;
2. Disability of the holder, their spouse or their children (2nd or 3rd category);
3. Over-indebtedness of the holder;
4. Expiry of unemployment entitlements following judicial liquidation;
5. Judicial liquidation of the holder's business (TNS);
6. Purchase of the primary residence (only for voluntary contributions and employee savings — compartments 1 and 2).

Warning: Early withdrawal for the purchase of a primary residence incurs similar taxation to a retirement exit in annuity/capital form.

PER in insurance form (the most common on the market) benefits from a significant succession advantage:

• If the holder dies before the PER is liquidated (before retirement age), the amounts transmitted to designated beneficiaries are outside the estate and benefit from the life insurance regime:
  • Contributions before age 70: deduction of 152,500 euros per beneficiary (CGI art. 990I);
  • Contributions after age 70: global deduction of 30,500 euros then standard inheritance tax.

This is a major advantage compared to conventional financial investments.

Maximizing PER Contributions Before Year-End

For a TNS, PER contributions must be made before 31 December to be deductible from the current fiscal year. An effective strategy consists of:

1. Calculating the estimated profit for the current fiscal year;
2. Determining the available PER deduction cap;
3. Making the maximum possible contribution before year-end.

Remuneration / Dividends / PER Arbitrage

For a SARL manager, the optimal strategy can combine:

• A moderate remuneration (to limit TNS contributions);
• Dividends for profit distribution;
• A PER contribution to build retirement capital with a tax advantage.

This three-way approach requires personalized analysis as the optima vary depending on marginal tax rates, contribution rates and the director's wealth management objectives.

• The PER replaces all previous supplementary retirement products (Madelin, PERP, PERCO, article 83);
• Voluntary contributions are deductible from taxable income within annual caps;
• TNS workers benefit from a higher deduction cap than employees;
• Exit is possible in capital or annuity form, with taxation depending on whether contributions were deductible;
• Early withdrawal for primary residence purchase is available for compartments 1 and 2;
• PER insurance offers a significant succession advantage in the event of death before liquidation.

(Sources: impots.gouv.fr PER, Service-Public.fr, Legifrance CMF art. L224-1, AMF)