Housing Savings Plan (PEL)

Anyone can open a PEL: there is no age, residence or nationality requirement.

If you are under legal protection (guardianship or trusteeship for example), this is your legal representative who has to open the account for you.

You can open a PEL in all banks that have signed an agreement with the government.

These banks undertake to respect the operating rules of the ELP.

But if you already have a home savings account (CEL), you must subscribe to the PEL in the bank where you already have the CEL. Indeed, the ELP and the EL must be held in the same establishment.

To open the PEL, you must sign a written contract with the bank.

No. You have the right to a single PEL. It is prohibited to hold several PELs at the same time.

There may be multiple PELs in your tax shelter, but within the limit of one ELP per household member.

Yes, you can combine the PEL with other regulated savings products (booklet A, sustainable and inclusive development booklet, popular savings book, etc.).

Initial deposit

When opening the account, you must make a payment for a minimum amount of €225.

You can pay this amount to the account by wire transfer, check, or cash if your bank accepts the cash deposit.

Periodic Payments

You must pay a minimum of €540.

You can make a one-time annual payment, but you can also make periodic payments (monthly, quarterly, or half-yearly). That is specified in the contract.

In general, the amounts of periodic payments are as follows:

• €45 per month
• or €135 by Quarter
• or €270 by semester

Payment can be made by wire transfer, check or cash if your bank accepts the cash deposit.

Other payments

You can also make other payments (known as one-time payments) in addition to periodic payments.

You choose the amount of these payments, but they must not result in the ELP ceiling being exceeded.

The maximum amount you can contribute to the ELP is €61,200.

The balance of the ELP may exceed this ceiling following the addition of interest.

The interest rate of the PEL is fixed at the opening of the account.

It is:

• 2.25% for ELPs open from 1^er January 2024,
• 2% for ELPs open between 1^er January 2023 and December 31, 2023
• 1% for ELPs open between 1^er August 2016 and December 31, 2022.

The interest is calculated by fortnight. The interest for the first fortnight is calculated on the 16th of the month, and the interest for the second fortnight is calculated on the 1st^er of the following month.

The interest is capitalizable. This means that as of December 31 of each year, interest is added to the capital already saved to generate additional interest the following year.

Since 2018, interest received from the ELP is subject to income tax and social security contributions.

When interest is paid, the banking institution must first make a lump-sum non-discharge payment of 12.8%, which is an income tax deposit.

The following year, you have to file a tax return that will allow the tax authority to calculate your final tax.

The administration will apply thethe single flat-rate levy your income from movable capital, including your ELP interests.

This levy corresponds to income tax, up to 12.8%and social security contributions, up to 17.20%.

But you can opt for the progressive income tax scale. This option to be applied to the progressive income tax schedule is irrevocable and applies to all your income from movable property.

In this case, all your income from movable capital will be taxed according to the composition of your tax household and according to your total income.

Your income tax rate may be lower or higher than the flat rate of 12.8%.

You will then be able to pay additional taxes or, on the contrary, receive a refund from the administration.

The payroll tax rate will always be 17.2%.

The ELP is concluded for a minimum duration of 4 years.

After 4 years, the ELP may be extended from year to year until the maximum duration of 10 years.

The bank must inform you one month before the deadline and you must reply within 5 working days.

The extension shall entail the continuation of the plan under the same conditions as when it was opened.

After Due Date, you can no longer make payments to the ELP, but will continue to generate interest for five years.

After 5^e year after the due date, your PEL is automatically transformed into a classic savings book.

He continues to earn interest, but at the rate set by the bank and not at the rate set in the contract.

When the plan expires, you can apply for a loan or assign your loan rights to a family member.

The credit institution may also close the ELP.

You can withdraw the money from the ELP, but after the due date of the plan.

The contract due date can be the original due date or the due date set after the contract extension.

The original ELP maturity date is 4^e anniversary of account opening.

In case of extension of the contract after 4^e birthday, the due date is moved to the next anniversary date.

Thus, the due date can be 5^e, on 6^e, on 7^e, on 8^e, on 9^e or 10^e anniversary of account opening.

The early withdrawal is that which is made before the expiry of the ELP.

It results in the closing of the account.

Early withdrawal can have other consequences, which vary depending on when the withdrawal is made.

Your PEL can help you get a loan at a predetermined rate under certain conditions.

Loan saves housing can be used to do any of the following:

• Purchase of the main residence (new or old)
• Construction of the main residence (land purchase and construction work)
• Expansion, repair or improvement of the main residence (elevation, energy saving, facade renovation of a condominium building...)
• Acquisition of shares in residential civilian real estate investment businesses (REITs) (if the account was opened before 1^er March 2021)
• Financing of premises for commercial or professional use which also includes the principal residence

To qualify for this loan, you must have a PEL that has expired and meet certain conditions.

The amount of the loan varies depending on the duration of the plan and the interest you have earned.

The maximum loan amount is €92,000.

The loan rate shall be fixed as soon as the plan is opened.

It is:

• 3.45% for ELPs open from 1^er january 2024
• 3.2% for ELPs open between 1^er January 2023 and December 31, 2023
• 2.2% for ELPs open between 1^er August 2016 and December 31, 2022

You can give in your loan entitlements to a member of your family, but provided that he also holds an ELP and both plans have been completed.

Also, a family member can give you loan entitlements generated by its ELP if both plans have been completed.

You can combine his rights with your own rights and get a larger loan.

If the two plans are not domiciled in the same bank, the loan must be granted by the bank where the plan with the highest amount of interest acquired is domiciled.

The members of your family to whom you can assign your loan rights or receive loan rights are:

• Your spouse
• Your children or your spouse's children
• Your grandchildren or your spouse's grandchildren
• Your parents or your spouse's parents
• Your grandparents or your spouse's grandparents
• Your siblings and their spouses or your husband/wife's siblings
• Your nephews and nieces or your spouse's nephews and nieces
• Your uncles and aunts or your husband's uncles and aunts

PELs open from 1^er January 2018 no longer qualify for the State premium.

It is possible to transfer your PEL to another bank while retaining the advantages acquired in the old bank: the age of the plan, interest rates and loan entitlements.

But the bank that holds the PEL may refuse the transfer.

In this case, you must close the old PEL and open a new one with the new bank.

If the bank holding the PEL accepts the transfer, it may charge you a transfer fee. These fees vary from one establishment to another.

It is also possible to transfer your PEL to a member of your family (child, grandchild, but also spouse, brother, sister, mother, father, uncle, aunt, nephew, niece...).

But the person to whom you transfer the plan must not already have an ELP.

The situation varies depending on whether the ELP is less than 10 years old or more than 10 years old.

The ELP may be subject to a administrative seizure by third party holders.

The ELP may also be subject to a attachment and assignment.

You may decide to close your PEL at any time, but the bank may also close your PEL in certain cases.