The French securities account (CTO): what it holds, 2026 tax, fees and CTO vs PEA

• No cap and no geographic limit: US shares, bonds, ETFs from any country, funds.
• 31.4% in 2026 on dividends, interest and capital gains: 12.8% income tax and 18.6% social charges, unless you opt for the progressive scale.
• Losses carry forward for ten years against gains of the same kind.
• A complement to the PEA, not a replacement: on €8,000 of gains, €2,512 of tax in a CTO against €1,488 in a PEA held over five years.

Almost every bank and online broker offers a securities account. There is no limit on the number of accounts and no minimum age: a minor can hold one, managed by their legal guardians, and a couple can open a joint account.

This guide applies to French tax residents in 2026. For the tax-advantaged wrapper dedicated to European shares, see our guide to the PEA.

What is a compte-titres ordinaire?

A securities account is opened with a bank or broker to buy, hold and sell securities. It always comes with a cash account that receives sale proceeds, dividends and coupons. It is called « ordinary » as opposed to accounts with special tax rules, such as the PEA.

• Shares from France, Europe, the US or other countries, listed on any exchange the broker gives access to.
• Bonds issued by governments and companies.
• ETFs and funds from any country, including those not eligible for a PEA. See what is an ETF.
• Complex products such as warrants, turbos or structured products, for those who understand the risk of total loss.

CTO or PEA: the differences

For European shares or eligible ETFs held over five years, the PEA is clearly better. The CTO takes over for what the PEA refuses: US shares held directly, bonds, non-eligible ETFs, or contributions beyond its cap.

How a CTO is taxed in 2026

Dividends and interest are taxed in the year they are paid, capital gains in the year of the sale. By default, they bear the flat tax (PFU) of 31.4%: 12.8% income tax and 18.6% social charges. Dividends and interest also bear, in the year of payment, a 12.8% prepayment later credited against the tax, which can be waived on request below certain income thresholds.

The option for the progressive scale, box 2OP of the return, applies to all investment income of the year. It brings a 40% allowance on dividends and the deduction of part of the CSG, and only pays off in the lower brackets.

Example: €1,000 of dividends

Under the scale: €600 taxable after the 40% allowance, €186 of social charges, minus the €68 of deductible CSG at the marginal rate. On a €5,000 capital gain, the flat tax costs €1,570.

Capital losses

Selling at a loss creates a capital loss. According to impots.gouv.fr, it offsets gains of the same kind in the same year, and the balance carries forward over the next ten years, oldest first; it is never deducted from overall income. For shares bought before January 1, 2018, the progressive-scale option gives access to holding-period allowances; they do not apply to shares bought since.

Declaring a securities account

A bank or broker established in France sends a single tax statement each year, the IFU, summarising dividends, interest and sales; these amounts are usually pre-filled in the tax return and should be checked. Gains and losses are reported on the supplementary return.

With a foreign broker, nothing is pre-filled: you declare income and sales yourself, pay the prepayment on dividends with form 2778-DIV, and declare the account itself on form 3916, or face a fine.

The fees of a securities account

• Brokerage: a commission per order, flat or proportional, often higher on foreign exchanges.
• Custody fees: an annual account-keeping fee, often zero at online brokers.
• Currency conversion: on securities quoted in dollars or another currency, on every purchase and sale.
• Transfer fees: charged by some banks to move the securities elsewhere.

Unlike the PEA, whose fees are capped by decree, a securities account's fees are set freely: the institution's fee schedule is the first document to read.

Transfers, death and other useful rules

• Transfer: a CTO can move to another bank without selling the securities, so without tax.
• No move into a PEA: securities in a CTO cannot be paid into a PEA; you have to sell them, pay tax on any gain, then contribute the cash.
• Death: unrealised gains are not taxed; heirs take over the securities at their value on the date of death, subject to inheritance tax.
• Joint account: each joint holder can operate it alone; income is declared by the tax household.

When to choose a securities account

1. When the PEA is full or you want to invest beyond its cap.
2. For securities the PEA does not accept: US shares held directly, bonds, non-eligible ETFs.
3. For a short horizon or the need to withdraw at any time without closing a wrapper.
4. To diversify outside Europe, alongside a PEA. See portfolio diversification.

Frequently asked questions