Since the PACTE law of 2019, the Plan d'Epargne Retraite allows early withdrawal of savings to finance the purchase of a primary residence. This major innovation has transformed the PER into a versatile wealth management tool, combining retirement planning and property purchase. For young professionals who hesitate to lock up their savings until retirement, this withdrawal option is often the decisive argument for opening a PER. However, this flexibility comes at a tax cost that must be precisely measured before proceeding.
The PER as a homeownership tool
Why this option was created
The legislator aimed to achieve a dual objective: encourage retirement savings -- historically low in France -- while facilitating homeownership, a top wealth priority for French residents. The former products (PERP, Madelin) did not allow withdrawal for a property purchase, which deterred many savers, particularly those aged 25-40.
By making the PER more flexible, the government succeeded: the number of PERs opened exceeded 10 million in 2024, with a significant share of subscribers being workers under 40 attracted by this dual functionality.
The mechanism in brief
The primary residence withdrawal works as an early redemption of all or part of your PER. You recover funds as a lump sum to finance your personal deposit, notary fees, or directly the purchase price. The taxation depends on the regime chosen at entry (deducted or non-deducted contributions) and the source of the funds (voluntary contributions or employee savings).
Precise conditions for primary residence withdrawal
Which compartments are concerned?
Only compartments 1 (voluntary contributions) and 2 (employee savings: profit-sharing, participation, employer matching) are eligible for primary residence withdrawal. Compartment 3 (mandatory employer and employee contributions) is excluded: these amounts can only be recovered as a life annuity at retirement.
What counts as a primary residence?
The primary residence is the property you occupy effectively and habitually, at least 8 months per year. Strictly excluded are:
- Secondary residences
- Rental investments (even Pinel or Denormandie schemes)
- Holiday homes
- Residences abroad (unless effectively the primary residence)
The property can be an apartment, a house, building land as part of a construction project, or shares in a residential SCPI if the property constitutes your primary residence (very rare in practice).
Eligible transactions
The withdrawal can finance:
- Purchase of an existing property (old or new)
- Construction of a new property (CCMI, VEFA)
- Personal deposit for a mortgage
- Payment of notary fees and related costs (guarantee fees, bank file fees)
- Purchase in co-ownership or via a residential SCI (subject to conditions)
Early mortgage repayment: a grey area
Early repayment of an existing mortgage on the primary residence is not explicitly mentioned among the withdrawal cases for "acquisition." The administrative doctrine remains unclear on this point. Some PER managers accept it, considering that repayment contributes to financing the acquisition; others refuse it. Check with your manager before initiating the request. In case of refusal, the primary residence withdrawal will not be possible and you will have to wait until retirement or another withdrawal case.
Withdrawal taxation: the crucial point
Contributions deducted at entry: the most common and most costly case
If you opted for the tax deduction when making contributions -- the default choice and most common among taxpayers with a 30% TMI or higher -- the primary residence withdrawal is taxed in the same way as a retirement lump sum withdrawal:
- The contribution portion is added back to your taxable income for the year of withdrawal and subject to the progressive income tax scale.
- The capital gains portion is subject to the PFU of 30% (12.8% income tax + 17.2% social levies).
This is the only early withdrawal case that benefits from no income tax exemption (unlike withdrawals for disability, death of spouse, unemployment, etc., which are fully exempt from income tax on contributions).
Contributions not deducted at entry: the favorable regime
If you did not deduct your contributions from your taxable income at entry, exit is much lighter:
- The contribution portion is fully exempt from income tax.
- The capital gains portion remains subject to the PFU of 30%.
This regime is significantly more favorable. This is why, if you know from the outset that your PER will be used to finance a property purchase within the next 5 to 10 years, it is often wiser not to deduct your contributions.
| Component | Deducted contributions | Non-deducted contributions | Employee savings (C2) |
|---|---|---|---|
| Tax on contributions | Progressive IT scale | Exempt | Exempt |
| Tax on capital gains | PFU 30% | PFU 30% | 17.2% social levies only |
| Impact on RFR | High (contributions + gains) | Moderate (gains only) | Low (gains only) |
| Typical tax outcome | Costly if TMI >= 30% | Favorable | Very favorable |
Worked example: Amandine, 32, marketing project manager
Amandine, 32, a marketing project manager at a digital agency, earns 42,000 euros gross per year (30% TMI). For 5 years, she has been contributing 3,600 euros/year to her Linxea Spirit PER, deducting her contributions. Her PER capital stands at 21,500 euros (18,000 euros of deducted contributions + 3,500 euros of capital gains). She wants to withdraw the full amount to put together the deposit for her first property purchase (a studio of 180,000 euros in Bordeaux).
Tax calculation:
- Income tax on the 18,000 euros of contributions: the 18,000 euros are added to her income for the year. Her taxable income goes from 37,800 euros to 55,800 euros. The additional income tax is approximately 5,400 euros (30% bracket).
- PFU on the 3,500 euros of capital gains: 3,500 x 30% = 1,050 euros
- Total tax: 6,450 euros
- Net received: 15,050 euros out of 21,500 euros gross capital
Amandine had saved approximately 5,400 euros in tax at entry (18,000 x 30%). The tax outcome is nearly neutral on contributions, but she loses 1,050 euros in PFU on capital gains. However, she benefited from her investment returns for 5 years, which partially compensates.
Non-deduction alternative: If Amandine had opted for non-deducted contributions from the start, she would have paid only 1,050 euros in tax (PFU on gains) and recovered 20,450 euros net. But she would have forgone 5,400 euros in tax savings at entry. The outcome therefore depends on how she used that tax saving.
Optimization strategies for primary residence withdrawal
Strategy 1: Do not deduct contributions if the property project is defined
If you know you will buy your primary residence within the next 5 to 10 years, systematically opt for non-deducted contributions to your PER. You will not benefit from the tax advantage at entry, but you will recover your capital virtually free of income tax at exit (only gains will be taxed). This strategy is particularly relevant for young professionals with low tax rates (11% TMI) whose entry tax saving would be modest in any case.
Strategy 2: Only withdraw part of the PER
Nothing obliges you to withdraw the full PER for the purchase. Limit the withdrawal to the strict minimum needed to complete your deposit, and keep the rest for retirement. This approach has a dual advantage: you limit the immediate tax impact and you retain capital that continues to grow over the long term.
If your PER contains both deducted and non-deducted contributions, prioritize withdrawing the non-deducted contributions first, as they exit free of income tax.
Strategy 3: Combine PER and Pret a Taux Zero (PTZ)
The PER withdrawal can serve as the personal deposit required by banks for a mortgage, including a PTZ. Banks typically require a deposit of 10 to 20% of the property price. If your PER can provide this deposit, it gives you access to credit on better terms: negotiated rates, cheaper borrower insurance, stronger application.
The 2026 PTZ is available to first-time buyers in high-demand areas (zones A, A bis, B1) for new builds and in less-stressed areas (zones B2, C) for existing properties with renovations. The income cap depends on the zone and household composition. Combining PER + PTZ + standard bank mortgage makes for an optimized financial structure.
Strategy 4: Plan the tax calendar
Make the withdrawal at the start of the tax year, when your income for the year is still modest. If you are in a year of professional transition -- job change, parental leave, business creation, sabbatical -- take advantage of this temporary income dip to reduce the tax impact of the withdrawal. Deducted contributions are added to your income for the year: a withdrawal in a low-income year can keep you in the 11% bracket instead of 30%.
Strategy 5: Compare with life insurance before withdrawing
If you also have a life insurance policy over 8 years old, redemptions benefit from an annual allowance of 4,600 euros (9,200 euros for a couple) on gains. By combining a life insurance redemption (for the tax-free portion) and a PER withdrawal (for the non-deducted portion), you can assemble a substantial deposit with minimal taxation.
PER vs life insurance for building a property deposit
A PER with deducted contributions offers a tax saving at entry but heavy taxation at exit (income tax scale on contributions). Life insurance offers no benefit at entry but light taxation after 8 years (allowance on gains). For a property project 5-10 years out, life insurance is often more advantageous if your TMI is 30% or above. A PER with non-deducted contributions is an interesting alternative combining the best of both: no tax on contributions at exit, and only capital gains are taxed.
The withdrawal procedure step by step
Step 1: Check conditions and fees
Before initiating the request, review the general conditions of your PER contract. Some contracts include early withdrawal fees or exit penalties on certain funds (euro funds with early exit penalties, for example). Online PERs such as Linxea Spirit PER, PER Placement-direct or PER Nalo generally charge no exit fees.
Step 2: Contact your manager and request the form
Contact your insurer or PER manager and request the early withdrawal form for primary residence purchase. Most online managers offer this process directly from your client area. Allow 2 to 6 weeks processing time depending on the provider.
Step 3: Gather and submit supporting documents
You will generally need to present:
- The signed preliminary sale agreement (compromis de vente) or purchase promise
- A sworn statement (attestation sur l'honneur) that the property will be your primary residence
- A valid proof of identity and bank details (RIB)
- For new construction: building permit and construction contract (CCMI)
- For an off-plan purchase (VEFA): signed reservation contract
Step 4: Receive funds and allocate them
The manager processes your request and transfers funds to your bank account. Some notaries accept a direct transfer from the manager to the notary's escrow account, which simplifies fund traceability. Keep all supporting documents for the transaction.
Step 5: Correctly declare the amounts
The following year, the withdrawn amounts appear on your income tax return. The manager sends you a tax summary (IFU) detailing the amounts to report in the appropriate boxes of form 2042. Check the consistency between the IFU and your pre-filled return.
Pitfalls to absolutely avoid
Not anticipating processing times
PER withdrawal takes time: at least 2 to 6 weeks between the request and the bank transfer. Do not count on the funds being available on the day of signing at the notary. Start the process as soon as the preliminary sale agreement is signed, which typically gives you 2 to 3 months before the final signing.
Underestimating the total tax impact
Calculate the exact tax due before deciding how much to withdraw. A 50,000 euro withdrawal of deducted contributions with a 30% TMI will generate approximately 15,000 euros in additional tax. If you have not set aside this amount, you risk an unpleasant surprise at the time of settlement.
Forgetting the impact on reference tax income
The withdrawal increases your RFR for the year, which can lead to the loss of certain advantages: property tax exemption, reduced CSG rate on pensions (for retirees), means-tested benefits. This effect is temporary (the withdrawal year only) but can be significant.
Not comparing contracts before withdrawing
If your PER contract includes exit fees or penalties, it may be less costly to first transfer to a fee-free PER (transfer is free after 5 years), then withdraw from the new contract. The transfer takes a few additional weeks, so factor it into your timeline.
The overall picture: when is PER withdrawal truly advantageous?
PER withdrawal for a primary residence is clearly advantageous in three situations:
-
Non-deducted contributions: exit taxation is light (PFU on gains only) and you benefited from market returns during the savings phase.
-
Employee savings with matching: employer matching generates an immediate return of 100 to 300% that more than compensates for exit taxation. Even after taxes, the net capital recovered far exceeds the amount initially invested by the employee.
-
Low TMI at the time of withdrawal: if you withdraw in a low-income year (unemployment, leave, early-stage self-employment), taxation on deducted contributions remains moderate.
Conversely, withdrawal is costly for savers with a 30% TMI or higher in the year of withdrawal who deducted all their contributions. In this case, carefully compare with alternatives (life insurance, PEL, regulated savings).
Conclusion
Using your PER to buy your primary residence is an attractive option that gives the PER a wealth dimension its predecessors lacked. For savers who opted for non-deducted contributions or those benefiting from matched employee savings, the outcome is largely positive. For taxpayers who deducted their contributions with a high TMI, the tax bill can significantly reduce the net amount recovered. In all cases, the key is anticipation: choose the right tax regime from the start, compare with alternatives, plan the withdrawal timeline, and do not forget to set aside funds for the tax due.
The information contained in this article is provided for informational purposes only and does not constitute personalized tax advice. PER taxation and PTZ conditions may change. Consult a wealth management advisor for an analysis tailored to your situation.